[Update late on 23-Feb-2024: This post was published just before 3 pm on a Friday afternoon. Just over a couple hours later, one of the two items had been “withdrawn” from the meeting agenda for no stated reason. Ironically, it was the Juno trip budget.]
Which of these do you think deserves greater scrutiny? A request by a real estate developer for the municipal government to further defer a payment of $10,440,000 in Community Amenity Contributions, already long overdue? Or a request for the city to cover $3,650 in expenses to allow one councillor to fly to Halifax to observe the Juno Awards?
The City Council meeting agenda for February 27, 2024 contains a total of eight items on the agenda of “Matters [to be] adopted on consent.” All eight could automatically pass at the beginning of the meeting. That is, unless even just one member of Council requests that an item be pulled for a proper presentation, discussion/debate and vote.
The third item on the consent agenda is a request to modify the CAC payment schedule (for the second time) for CACs still owed to the City of Vancouver for a major development (a 33-storey residential building comprised of 127 market strata units) at 1698 West Georgia Street in the West End, near the entrance to Stanley Park. If the $10,440,000 ever does get paid, it will be allocated to support delivery of the West End Public Benefits Strategy. That’s the same West End that is home to the Vancouver Aquatic Centre where cement is falling off the ceiling and walls. That’s the same Vancouver Aquatic Centre operated by the Vancouver Park Board. The same Vancouver Park Board that mayor Ken Sim wants to take over.
The title of this document on the agenda gives no real hint to its implications or importance: “Directions Report: Consideration of Modification to Conditions of Approval 1616-1698 West Georgia Street, CD-1 (812).” But being a businessman and professional certified accountant who sells himself as having a close eye on civic finances, especially in the midst of a steadily rising burden on taxpayers, Mayor Ken Sim can’t afford to let this miss his scrutiny. Nor can the public. Nor can the West End residents, who need that money to improve amenities in the community. On behalf of the public the very least this council could do at the meeting is pull the item from the consent agenda to have staff make a presentation to justify their recommendation. Or better yet, have the CEO of Anthem come and explain.
Is Anthem, the privately held company behind this deferral request, a fragile company deserving of public largesse? Founded in 1991, the Anthem Property Group (CEO Eric Carlson, https://anthemproperties.com/company/about-us/) reportedly had an aggregate value of over $6 billion across western North America as of 2019. It currently has a residential portfolio of over 20,500 homes complete, in design or currently under construction.
After negotiating with the City, developers usually make the CAC cash payment in full, prior to the CD-1 enactment for a specific development, which happens before construction can commence. In this case, the CACs were only partly paid prior to enactment ($15,660,000 paid of $26,100,000 total due, leaving the current $10,440,000 outstanding). Council previously modified the CAC schedule for this property on June 13, 2023 on the request of the developer. That time it was done without any discussion by Council. It was buried in the consent agenda. (Blink and you would miss it. The mayor and entire council must have blinked.) This new request going to Council on Feb 27 is for the deferral of CAC payment until the end of 2024 or until the construction is above grade. Interest is charged at prime plus 2%. Anthem’s reasons for the request include “market uncertainty” from interest rate increases, slow condo market sales/conditions, and increases in hard costs.
But isn’t the risk of changing conditions a part of any industry? Is it up to the public to relieve stress of private companies when conditions change and a business model proves itself to have had shortcomings?
What about moral hazard, from the perspective of our municipal government (specifically, the officials we elect to represent the public interest above all)? With some real estate developers now in financial trouble, is it up to the public and taxpayers to show generosity? The municipal government is a regulator of land use, and in a sense, created an enabling environment. But one could say that real estate developers engaged in irrational exuberance during the market boom, based on a business model (turbocharged in the case of the West End by the 2013 community plan) that relied on presales of luxury condos — with a major emphasis on marketing to foreign buyers. This project by Anthem at 1698 West Georgia appears to fit that model. That business model had its own risks. Which Anthem willingly accepted. That business model also played a role in severely warping the housing market, fueling the current housing problems in this province.
Anthem is not the only major developer seeking public favors. Back on October 17, 2023, a second round of CAC deferrals, also in the West End, were approved by Council on consent, for three other sites. Those deferrals were valued at $52.2 million.
There has been much media coverage about the aging — but still heavily used and much appreciated — Vancouver Aquatic Centre falling apart, to the point of being a physical hazard. It is located in the same West End where developers enjoyed a boom in construction for many years after the West End Community Plan was adopted in 2013. With a dramatic increase in population in the past ten years fueled by that construction, the West End also has other major and urgent needs for community resources and amenities. Should the City really be considering deferring CACs at all? What assurance is there that Anthem will not ask for more CAC “modifications to conditions of approval” in the future?
Speaker registration is open for all of the eight consent agenda items: https://vancouver.ca/your-government/request-to-speak-at-meeting-form-1.aspx
You can also write to Mayor and Council via the meeting page here: https://council.vancouver.ca/20240227/regu20240227ag.htm
Or contact Mayor and Council directly by e-mail: https://cityhallwatch.wordpress.com/city-hall/contact-officials/
$3,650 to observe the Junos
One item that did generate a lot of interest on social media is the request by Councillor Mike Klassen related to travel to Halifax for the Juno Awards that are to be held March 21-25, 2024. The report recommends approval of the travel expenses and notes that Vancouver is next in line for hosting a Juno in 2025. Critics have suggested that this trip is unnecessary and that Vancouver has hosted the Juno awards on several occasions in the past. The estimated trip expenses are $3,650.
Trips by Councillors billed to the public purse are not a new thing. Former Vision Vancouver Tim Stevenson’s Sochi Olympic trip in 2014 reportedly cost $42,000. A number of current and previous members of Council who were on the Metro Vancouver Board were also able to reimbursed for trips. For example, former Vision Vancouver Councillor Raymond Louie went on a junket to Brisbane Australia and billed taxpayers $10,059, while Heather Deal and Tim Stevenson also billed Metro Vancouver for various trips in 2018.
Here’s a list of CityHallWatch comments from the previous deferral of CACs on June 13, 2023 for 1698 West Georgia:
- This developer is seeking to defer $10 million in a community amenity contribution (CAC) payment agreement, which is supposed to benefit the host community of the West End. This rezoning for hundreds of condos in the West End, near Coal Harbour, was already approved, two years ago. Project details are here – https://www.shapeyourcity.ca/1698-w-georgia-st
- This very high density “luxury” development achieved on the former Chevron site on West Georgia was apparently engineered by Kevin Falcon, the current leader of BC United, the provincial opposition party. He reportedly worked for Anthem as liaison between Anthem and the politicians to achieve the best possible outcome for the developer.
- Anthem is not a fragile company deserving public largesse. Founded in 1991, it already had an aggregate value of over $6 billion across western North America as of 2019, and searching the web, it apparently has over 400 employees, a commercial portfolio of over 9 million square feet, a residential portfolio of over 20,500 homes, and a portfolio of current and past projects of over 8,500 acres of land. It is difficult to find much about the corporate ownership, but it appears to be a privately held company, with no public reporting.
- We’ve covered Anthem a number of times before. The company is a regular political donor to developer-friendly parties as you can see in our past election coverage. Plus a story from 2012 suggested that Anthem and Beedie Living were also engaged in the practice of insider pre-selling to family/friends (https://cityhallwatch.wordpress.com/2016/06/17/developers-insider-condo-sales-kathy-tomlinson-gm/).
- The public should also be told how much Anthem saved annually in property taxes already by having a dog park on the site. Probably already in the hundreds of thousands of dollars diverted from the public purse, with the burden placed on other taxpayers. We hope someone on council will ask how much the company has saved cumulatively, and in the most recent year. https://cityhallwatch.wordpress.com/2022/01/23/entire-block-of-dog-parks-assessed-at-250m-massive-tax-breaks/
- If the ABC majority under Ken Sim accepts this request, it sets a bad precedent. We are working on a future story on corporate capture and regulatory capture of Vancouver city hall. If this $10 million deferment request is granted, it will cement the case, so watch how each member of Council votes on this one.
- We’d love to see Anthem show some gratitude to the people of Vancouver (including taxpayers), and withdraw their request for this freebie.
- Related media: Major developer asks to delay $10 million payment to Vancouver city hall: The request could be a sign of things to come, says a Vancouver property developer and real estate consultant (Vancouver Sun – https://vancouversun.com/news/local-news/major-developer-asks-to-delay-10-million-payment-to-vancouver-city-hall)
- The outcome was that on June 13, 2023, Mayor Ken Sim and the rest of his ABC-dominated council approved this request by the developer and staff recommendation. With no discussion. Our elected officials did not ask a single question. Reference – Vancouver council approves developer’s request to defer $10 million payment (Vancouver Sun, 14-Jun-2023 – https://vancouversun.com/news/local-news/vancouver-council-approves-developers-request-to-defer-10-million-payment)
Links
Metro Vancouver Board and Committee Expenses
Council preview for week of Jun 12: DPB on 105 Keefer, Broadway Plan, Anthem seeking public largesse, Climate Emergency Action Plan update, simplifying sewers, False Creek North non-market housing (CityHallWatch, June 12, 2023)
Report to Council Oct 17 seeks delay in $52 million in CACs developers owe for 3 rezonings in West End. One payment already appears to be delinquent. (CityHallWatch, October 16, 2023)
Council agenda: https://council.vancouver.ca/20240227/regu20240227ag.htm
Council agenda
February 27, 2024
Date and location
Tuesday, February 27, 2024 9:30 am
Council Chamber, Third Floor, City Hall
Get involved and stay informed
Tip: Send your comments the day before the meeting so Council has time to review them.
Sign up to speak about an agenda item by 5pm the day before the meeting. Requests to speak will not be accepted after 5pm.Request to speak
Watch the live broadcast Get updates on Twitter
Questions about this agenda?
- Email speaker.request@vancouver.ca
- Phone 604.829.4323
ROLL CALL
IN CAMERA MEETING
THAT Council will go into meetings later this week which are closed to the public, pursuant to Section 165.2(1) of the Vancouver Charter, to discuss matters related to paragraphs:
(c) labour relations or other employee relations;
(e) the acquisition, disposition or expropriation of land or improvements, if the Council considers that disclosure could reasonably be expected to harm the interests of the city;
(g) litigation or potential litigation affecting the city;
(i) the receipt of advice that is subject to solicitor-client privilege, including communications necessary for that purpose;
(j) information that is prohibited, or information that if it were presented in a document would be prohibited, from disclosure under section 21 [disclosure harmful to business interests of a third party] of the Freedom of Information and Protection of Privacy Act;
(k) negotiations and related discussions respecting the proposed provision of an activity, work or facility that are at their preliminary stages and that, in the view of the Council, could reasonably be expected to harm the interests of the city if they were held in public;
FURTHER THAT Council will go into meetings later this week which are closed to the public, pursuant to Section 165.2(2) of the Vancouver Charter, to discuss matters related to paragraph:
(b) the consideration of information received and held in confidence relating to negotiations between the city and a provincial government or the federal government or both, or between a provincial government or the federal government or both and a third party.
ADOPTION OF MINUTES
1. Business Licence Hearing – January 31, 2024
3. Council (City Finance and Services) – February 7, 2024
4. Court of Revision (BIA) – February 8, 2024
MATTERS ADOPTED ON CONSENT
REPORTS
1. Approval of Business Improvement Area (BIA) Renewals and Expansion 2024
2. 2024 Fee Schedule for Streamlined Business Licence Types
3. Directions Report: Consideration of Modification to Conditions of Approval
1616-1698 West Georgia Street, CD-1 (812)
4. Licence Agreement with the Vancouver Port Authority over a Portion of Victoria Drive, North of Powell Street for the Operation of an Access Control System
5. Closure and Sale of a Portion of Lane Adjacent to 5025 Arbutus Street, 2126 West 34th Avenue and 2109-2129 West 35th Avenue
6. Lease Extensions with Sch’eyk Housing Society for 501 East Hastings Street, 540 East Hastings Street and 2025 Brunswick Street
Recommendations A through C require 8 affirmative votes of all Council members under section 206(1) of the Vancouver Charter.
7. Councillor Mike Klassen’s Travel to Halifax for the Juno Awards March 21-25, 2024
8. West End Community Hub Renewal Plan
REFERRAL REPORTS
1. Shared Electric Kick Scooter Pilot By-Law Amendments
BY-LAWS
1. A By-law to amend the Business Premises Regulation of Hours By-law No. 8022 regarding standard and extended hours liquor establishments located in Chinatown, Gastown, Industrial, Thornton Park, and Victory Square
2. A By-law to amend CD-1 (818) By-law No. 13399 regarding miscellaneous amendments regarding 120-150 West Georgia Street, 720-770 Beatty Street and 701 Expo Boulevard (formerly 720 Beatty Street and 701 Expo Boulevard)
(Councillors Kirby-Yung, Meiszner and Mayor Sim will need to review the proceedings to be eligible to vote)
3. A By-law to enact a Housing Agreement for 1218 East Georgia Street
4. A By-law to enact a Housing Agreement for 3747-3761 Renfrew Street
5. A By-law to enact a Housing Agreement for 657-685 East 18th Avenue
6. A By-law to enact a Housing Agreement for 1050 Expo Boulevard
7. A By-law to enact a Housing Agreement for 450 Pacific Street
8. A By-law to enact a Housing Agreement for 990 Beatty Street
9. A By-law to amend Zoning and Development By-law No. 3575 to rezone an area from RS-1 to RR-2B regarding 5828-5850 Granville Street
(Councillors Bligh and Dominato and Mayor Sim will need to review the proceedings to be eligible to vote)
10. A By-law to amend Zoning and Development By-law No. 3575 to rezone an area from RS-1 to RM-8A regarding 707 West 27th Avenue
(Councillors Bligh, Klassen, Meiszner, Montague, Zhou and Mayor Sim will need to review the proceedings to be eligible to vote)
11. A By-law to amend Zoning and Development By-law No. 3575 to rezone an area from RS-5 to RR-2B regarding 2325-2377 West 49th Avenue
(Councillors Bligh, Fry, Kirby-Yung and Mayor Sim will need to review the proceedings to be eligible to vote)
12. A By-law to amend Zoning and Development By-law No. 3575 to rezone an area to CD-1 (1247 Kingsway)
(Councillors Klassen, Meiszner, Montague, Zhou and Mayor Sim will need to review the proceedings to be eligible to vote)
ADMINISTRATIVE MOTIONS
1. Approval of Form of Development: 5570 Manson Street (Formerly 5562-5688 Manson Street)
2. Resolution – Closure and Sale of a Portion of Lane Adjacent to 5025 Arbutus Street, 2126 West 34th Avenue and 2109-2129 West 35th Avenue
Subject to the approval of Report 5.
NOTICE OF COUNCIL MEMBER’S MOTIONS
NEW BUSINESS
ENQUIRIES AND OTHER MATTERS
* * * * *
CityHallWatch: Tools to engage in Vancouver city decisions 