Robin Kimpton
on
the City's purchase of 710 Queens and Gorge Road
or,
What was Council Smoking?
What was Council smoking when it purchase these two Travellers' properties?
The Capital Expenditures
The City purchased 710 Queens Avenue (a 35 unit motel property) and the Gorge Road Travellers in 2010.
It paid approximately $6 million dollars (from our Emergency funds) for both properties. So far it has managed to house some 35 adults on social assistance at 710 Queens. Using this number as the numerator that is $171,428.00 per unit. All the while the private sector was purchasing these properties for approximately $50,000 per unit.
But wait, hold on, there is still a large capital budget for renovation of both properties yet to come!
Operating Economics
On the cost side, the opportunity cost of money (this is high risk money) would be in the order of 8% on a property like this. 8% money would result in mortgage payments or the opportunity cost of money to you the tax payer of approximately $480,000 per year or $40,000 per month. The City by its own publication lists an operating budget of $500,000 per annum or another $41,666 per month. In addition, of course, the City would not pay taxes to itself. The taxes on a property like that would be about $60,000 per year, lost to you. The total annual operating budget comes in then at $87,666 per month.
How does that measure up then against the revenue side?
As stated above, there are 35 units or 35 guests / tenants at 710 Queens Avenue. All are probably on social assistance paying approximately their $600 per month social assistance allowance. Lets see now, 35 times $600 equals $21,000.
$87,666 is greater than $21,000 by $66,666 per MONTH!!! or $799,999 per YEAR.
Thats our money folks and we are losing it fast.
Dean argues that portions of these capital expenditures were received from senior levels of government but it is still our money.
Operating Realities
We are currently in a precarious world wide financial crisis. Economies all over are holding there breath. Electorate, we are meeting throughout the City express major concern about their personal finances. But no the City Council charges ahead undeterred.
The City's economy is now for the most part based on government and tourism. B. C. Ferries has announced the lowest ridership in 20 years this past summer. We suggest there is plenty of capacity in the private sector to accommodate this housing without the City wading in. We took over Blanshard Manor (760 Queens) on December 24, 2010. At the time it had some 20 guests. We advertised throughout the winter including several discussions with VIHA, Pacifica Housing etc. We peaked at approximately 45 guests. We have 85 units. We could have absorbed 710's entire occupancy and still had units to spare. We suggest there are many Travellers with capacity.
Had it not been for this Council, we would still have our $6,000,000.
What were they smoking at Council?
The only thing I can see they were smoking was our money.