The $3-billion debate over Vancouver’s Jericho Lands
The federal government is edging closer to a potential windfall disposal of one of Canada's most valuable plots of oceanview real estate.
And while the B.C. government says it is "not considering or planning" the sale of its portion of the Jericho Lands, a heavily-censored report obtained by the NDP indicates that Victoria did recently consider a potential sale.
Each government owns part of the 36 hectare area overlooking Jericho Beach Park in Vancouver's posh West Point Grey neighbourhood.
It's a dream location where residents, including many fearing a pending major development in their neighbourhood, enjoy stunning views of English Bay, the downtown Vancouver skyline, and the North Shore mountains.
The University of B.C. is down the road, and high-end shops and restaurants are a short walk away.
While taxpayer-funded studies of the area's potential value are being kept private, it's no secret the value is staggering.
Jason Upton, president of Aedis Appraisals Ltd., grew up in the neighbourhood. He predicts the land owned by both governments could be worth more than $2 billion if the City of Vancouver allowed both single-family housing and low- to mid-rise apartment buildings.
Realtor Spice Lucks, who said she's been eyeing the Jericho Lands' potential "for the better part of my life," said the value could approach $3 billion.
"It is an extraordinary view property, and the emotion will draw the pricing to an unprecedented level," she said.
The cheapest West Point Grey house being advertised by realtor Ken Wyder is a tiny 1,528-square-foot "character" home, which is also billed as a "builder alert!" property. It's listed at $1.4 million. The most luxurious of the website's 79 single-family dwellings has a $20-million asking price.
Secrecy surrounds federal talks with the three First Nations that claim title to the area — the Musqueam, Squamish, and Tsleil-Waututh.
None of the three First Nations responded to interview requests. But a document obtained last year by the B.C. Federation of Labour made it clear Ottawa is inching closer to a deal.
"We are working toward a business agreement between Canada and First Nations aimed at unlocking the value of these properties for the economic benefit of all parties," the undated federal email stated
"There is a strong possibility that the sale could be concluded in 2014."
B.C. government spokesman Jason Macnaughton said Victoria "is not considering or planning the sale" of its Jericho property. A heavily-redacted 2012 provincial study, obtained by the B.C. NDP, indicates that Victoria has at least explored the idea of following Ottawa's lead.
The appraisal, done by Coriolis Consulting Corp., is titled: "Evaluation of the Development Potential of the Provincial Jericho Lands."
The consultant's conclusions were whited out under provisions [Note] of B.C.'s Freedom of Information Act that allow government censors to exclude information "harmful" to "the financial or economic interests of a public body."
Macnaughton said the study was part of a "prudent" due diligence process and had been done three times previously, dating back to the 1990s.
Andrew Wilkinson, B.C.'s minister for technology, innovation and citizens' services, was asked by the NDP in July if the province planned to sell the land.
"The province has not entered into any formal talks with First Nations, the city of Vancouver or other stakeholders regarding the provincially-owned lands at Jericho," Wilkinson said.
"I think it's probably stating the obvious that we will observe with detailed interest what happens with the federal lands [Note] and whether there's a disposition there."
He said the extent of the province's discussion with the Musqueam First Nation has amounted to "incidental remarks."
Critics say a lack of information about both governments' plans fosters tension for many who live around the two parcels of land — the province's 15.5 hectares sloping down from West Eighth Avenue to West Fourth Avenue and the 21 hectares owned by the Department of National Defence immediately to the east.
"There's so much anxiety," said the area's MLA, David Eby, who maintains that the government's commissioning of a secret report indicates it is looking at a sale to help balance the provincial budget.
The rookie MLA (he defeated Premier Christy Clark in the Vancouver-Point Grey riding in the May election) said a prominent professional who approached him at a public meeting last year, and vowed to lie in front of a bulldozer to stop unwanted development.
"It blew my mind when he said that," Eby said, as he contemplated a potential radical protest involving some of B.C.'s wealthiest residents. "You're talking about some of the real power brokers in this city.
"It's true the community doesn't have a veto, but, that said, these people are very passionate about this issue. Any developer and certainly the provincial government should take notice that there will be significant resistance to a development process that goes ahead without consultation."
Liberal MP Joyce Murray (Vancouver Quadra) is also hearing from concerned constituents and is also frustrated by her mostly fruitless efforts to find out what's happening.
"It's like pinning jelly to the wall."
While some residents say the outcome could be positive if some of the profits are invested in parks and playgrounds, the lack of public information has led to some fearful speculation.
"The worst-case scenario (being discussed among neighbours) is highrises and no public spaces," said Christine Nelson, president of the West Point Grey Community Association.
The federal land, home of the Jericho Beach Garrison, is occupied by a number of Department of National Defence units and organizations, including 39 Canadian Brigade Group headquarters, the 12 Field Ambulance, the Canadian Forces Housing Agency and the B.C. Mainland Military Family Resource Centre.
There are about 100 military personnel and their families living in relatively low-cost defence department rental housing. They must find their own housing starting in 2017.
The 39 Canadian Brigade Group headquarters is to move from Jericho to the Seaforth Highlanders Armoury on Burrard Street at First Avenue, which is getting a $40.5-million refit.
The main tenants of the provincial land are the West Point Grey Academy, the exclusive private school where Liberal leader Justin Trudeau once briefly worked as a teacher, and a daycare and recreation centre owned by the City of Vancouver Parks Department.
Leases for these properties expire in 2020. There are other recreational properties on the province's land, including a soccer field and tennis courts.
Other than those public institutions and facilities, the land is largely unoccupied, making it stand out in an otherwise well-populated neighbourhood.
A tall, overgrown hedge topped with thorny vines lines the southern perimeter of the federal lands. From there, the ground drops steeply then opens up into flat or gently-sloped fields with only sparse development.
Signs that read "No Trespassing" — some hung from fences topped with barbed wire — run along the sides of the property. There are a few large structures on the lands — a building boasting a placard that reads "Headquarters 39 Canadian Brigade Group," a garage, and a multi-storey apartment building that houses military families.
Tidy rows of aging single-family military homes occupy the southeast quadrant on roads with names that evoke memories of some of the Second World War's greatest battles — Antwerp Lane, Salerno Street and Normandy Drive.
The surrounding area has a mix of parkland, low-rise apartments, commercial properties and heritage homes. To the east of the government lands are multi-storey apartment buildings. But a solitary highrise sticks out among the crowd as the only nearby building taller than a few storeys.
Though residents living near these properties express angst, government officials have assured the public they will be consulted when the Canada Lands Company, the federal corporation that handles sales of federal assets, takes control of the land.
“As a part of the redevelopment process, it (the CLC) would hold public consultation sessions,” then-defence minister Peter MacKay stated said last year.
CLC spokeswoman Manon Lapensee said the corporation is subject to the municipal planning process and, if it acquires Jericho, its plan will be submitted to the city “well before” the property is put on the market.
“What separates CLC from the private sector is its attention to detail and respect for stakeholder aspirations — through consultation with municipalities, consultations with the public and ensuring a vision for a site that encompasses innovation, sound business practices and community aspirations,” she said in an email.
Wilkinson, the B.C. minister, provided a similar assurance in his exchange with Eby in the legislature in July when asked if the province would launch a public discussion if it decided to follow Ottawa’s lead.
“I expect there will be (full) consultation if there is any progress on any plan to do anything differently, other than the status quo, with the Jericho Lands.”
Vancouver Councillor Andrea Reimer, chair of city council’s planning, transportation and environment committee, also expects consultation.
“On a balance of probabilities there will absolutely be a consultation process, whether it’s because of historical precedent or legal requirement, because we can legally regulate a private developer,” she told The Vancouver Sun.
She said the Jericho Lands are zoned for single-family homes and public institutions like schools.
Her only caveat was if a First Nation ended up exclusively owning land — as opposed to having an equity stake with a private developer — that was designated by Ottawa as an “addition to reserve” property.
The city would have no authority then, she said, though she added the three First Nations have “excellent” relations with the city and would be likely to cooperate on issues of development, zoning and public consultation.
While officials struggle with the complexity of the expected land disposal, local residents are coming to terms with the potential end to the status quo
Talk of this potential development dates back a half-century, to the 1960s.
In the late 1980s then-mayor Gordon Campbell spoke optimistically about a major development project -- though he assured the public the matter wouldn't be settled overnight.
"The Jericho Lands will happen in the next 10 years. It's a 1990s project," an over-confident Campbell predicted.
Marcia Pitch, one of the concerned residents living near the Jericho Lands, acknowledged that change may be finally underway.
"To be honest, I thought I wouldn't see this (developed) in my lifetime, but I've seen things accelerated in the past in other places, so one never knows."
Joe Cordonier, a volunteer who walks dogs for a veterinary clinic, is one of the many walkers, bikers and runners that enjoy the area.
"I'd like to see it be a park," said Cordonier, while out walking a patient.
He pointed toward UBC and said much of it is already developed or being developed, adding that there is not much need for more housing in the area.
1859: The Royal Navy and Royal Engineers conduct reconnaissance of English Bay and Burrard Inlet, identifying the Jericho Beach area as a future military reserve.
1919: A year after the First World War ends, the Dominion Air Board selects Jericho Beach as the site for a West Coast “flying boat” air station. During the 1920s, Jericho had the distinction of being the first Canadian seaplane base to include a “division of homing pigeons.”
1942: A year after Japan stuns the world by attacking the U.S. fleet at Pearl Harbor in Hawaii in 1941, Ottawa expands the base into a golf course in order to set up the Pacific command headquarters for the army, navy and air force.
1968-72: The federal government transfers 12 waterfront hectares north of Fourth Avenue to the city to be made into Jericho Beach Park. "Flying boat" hangars along the waterfront are demolished.
1995: Federal budget declares remaining Jericho lands surplus to government needs.
1996: Jericho Beach Detachment closes, though a portion of the property continues as the Jericho Beach Garrison, home of the 39 Canadian Brigade Group headquarters.
2013: Federal government, in public statements and in internal documents, indicates it is in discussion with local First Nations, who claim the land, and will dispose of the property as early as 2014.
Sources: Department of National Defence; Province of B.C.; Canadian Military History blog
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