Report Reveals Vancouver Missed Millions in Poorly Planned Land Deals
A recent report by Vancouver’s independent auditor general has revealed significant shortcomings in the city’s management of land deals, leading to potential financial losses. The findings show that the city missed out on millions of dollars due to poorly planned land transactions.
Key Findings from the Auditor General’s Report
The report, authored by Auditor General Mike Macdonell, highlights a troubling $13 million calculation error in a land sale related to 601 Beach Crescent. This miscalculation meant the city underestimated what the developer owed.
Furthermore, there were two transactions worth over $90 million in which payments were delayed for years, with no interest charged, contrary to city policy. If interest had been applied, the city could have accrued about $26.3 million in additional revenue.
Analysis of Land Transactions
Macdonell’s office reviewed 16 out of 40 transactions from 2016 to 2024. Notably, 14 of these transactions were initiated by buyers or developers rather than the city, indicating a reactive approach rather than a proactive land management strategy.
Auditor General Mike Macdonell emphasized that land deals, once executed, cannot be reversed and stated, “There’s only one chance to get it right.” This highlights the importance of careful planning and documentation in such transactions.
Documentation and Approval Issues
- Incomplete documentation was a recurring issue in many transactions.
- Several approvals were granted without full disclosure of sale prices in relation to appraised values, with differences ranging from $50,000 to $2 million.
Macdonell pointed out that the lack of organized documentation and outdated guidelines contributed to the oversight in transactions. As a result, the council was not consistently provided with crucial information regarding payment conditions and extensions.
Recommendations for Improvement
The auditor general’s report includes 10 recommendations aimed at enhancing the value derived from land sales. These include:
- Establishing a proactive land strategy
- Updating the land sales policy for clarity
- Ensuring better information flow to the council
- Improving record-keeping practices
Many of these recommendations were deemed common-sense by Macdonell. In response, city manager Donny van Dyk’s office acknowledged agreement with several of the recommendations but highlighted the complexity of land negotiations.
City’s Response to Findings
The city emphasized its commitment to transparency and continuous improvement in its land transaction processes. They stated that negotiations often involve balancing various interests to achieve fair outcomes for both the public and development partners.
This report serves as a critical evaluation of Vancouver’s land deal practices, urging necessary reforms to avoid similar financial pitfalls in the future. Effective implementation of the recommendations could lead to better management of public land and improved financial outcomes for the city.
