Scrap deal, start over: Vancouver councillor suggests B.C. rework contract for Little Mountain development

VANCOUVER (NEWS 1130) — Frustration is growing among city councillors in Vancouver following new revelations of a “sweetheart” development deal offered up by the former B.C. Liberal government to develop a major parcel of land next to Queen Elizabeth Park.

According to FOI-sourced documents from CBC, data shows the taxpayers have been unable to recoup nearly $300-million worth of loans so far for the Little Mountain redevelopment project along Main Street at 36th Avenue.

Vancouver Councillor Christine Boyle says, at this point, the provincial government needs to look at a total revamp of the previous deal struck with Holborn Properties.

“The public could retake ownership of the land — Holborn paid only a small portion of the amount — and that could be paid back and we could have true public and non-market community housing on that land with a much deeper level of affordability,” she says.

Responding to FOI-sourced documents from @cbcnewsbc, Vancouver Councilor @christineeboyle calls for re-tooling of BC Liberal gov't deal with #Holborn for Little Mountain redevelopment, with project 13 yrs behind and hundreds-of-millions in taxpayer loans not paid back. @NEWS1130 pic.twitter.com/WhZgimzIdD

— Paul James (小保) (@pjimmyradio) August 31, 2021

Under the deal, Holborn was contracted to redevelop the site, formerly home to around 225 low-rent apartments, starting in 2009.

Boyle says it’s going to be up to the province to make any move to re-tool the agreement with developer Holborn.

“I do think a large part of this conversation is in the hands of the province in terms of what levers exist, to reconsider the deal, or to even add dates, to it to ensure that this housing is built as fast as possible, acknowledging that it’s already taken significantly longer than it should have to the benefit of the developer and to the detriment of all of the rest of us.”

Holborn was given loans worth some $300-million by the province to redevelop the Little Mountain site in 2008 but didn’t start breaking ground on the project until the start of this year.

Holborn only has to repay its interest-free loans based on the pace of the project.

Under the newly-revealed deal, the company’s repayment is based on how quickly the project — which is supposed to replace social housing in the area — actually goes up.

“British Columbians got a terrible deal on this.”

“The even bigger hurt is that during a massive housing crisis, this land has sat empty and the structure of the deal — which seems to have made it beneficial to put off development for as long as possible. It is incredibly frustrating for me as someone working every day to try to figure out how we create more housing for people, and particularly the housing that’s needed, which is the kind of housing that was demolished.”

The original deal, overseen by then-provincial Housing Minister Rich Coleman, called for a replacement of the social housing units which were lost, which saw over 600 people displaced from their homes when the original units were torn down in 2008.

While some of that housing has been rebuilt on the site, the details of Holborn’s plans for the site remain somewhat murky.

The company’s website only provides a vague description of its intentions for the Little Mountain rebuild.

“This 15.2-acre site will be rezoned to accommodate approximately 1,400 units of market residential, a Neighbourhood House and daycare facility, retail and commercial space, a vibrant village square and green, public spaces.”