Something Fishy This Way Comes
Gord Fuller: January 6, 2013
This one has been really nagging at me since the story came out. First off we did not sell the property for $1.00 we are actually giving it, assessed value of $3,379,000.00, to the developer and will also pay them $39,999.00 if torn down or upgraded in two years. With knowledge of Tectonica’s plans a great deal for them.
This comment by Mayor Ruttan is simply ludicrous; “The sale of the old City Hall Annex to Tectonica for one dollar solves the challenge of disposing of a property for which there is no financial incentive for a buyer to develop.” The only reason to justify this comment is that when the City decided to build its new Annex, without out it going out to tender, it was partly justified with regards to the earthquake readiness of the old annex. Mayor & Council then, in their infinite wisdom, decided that as a condition of sale for the property of the old annex the building would have to be upgraded to today’s standards or be demolished.
These conditions of sale are the only thing that renders the property of little value. Unlike all other commercial properties that do not meet current earthquake standards, and this is many, said properties do not have these conditions. The condition they do have is that if there is a change of use of the building i.e. office use to condo then and only then they would have to earthquake upgrade. Commercial properties are sold all the time; buildings either demolished and then rebuilt to current standard or they are renovated and not earthquake upgraded.
This story in the Daily News shows quite clearly the value of commercial properties; http://www2.canada.com/nanaimodailynews/news/story.html?id=d2831d0a-d5ea-44b9-92a9-33449d3837bb and also that sales of such have been booming.
Why then did our Mayor & Council approve giving away the property at 238 Franklyn St? There is something fishy, literally stinks, here and not just in this decision but others the city has made as well.
Council sells city hall annex for $1
Approval given to sell old city annex for $1