The B.C. government will not consider any competing bids on a 38-acre site in Vancouver’s West Point Grey after it received an offer to buy its Jericho Land parcel from three First Nations bands.
The province confirmed it has accepted a Letter of Intent from the Musqueam, Squamish and Tsleil-Waututh Nations, according to a release issued by the Ministry of Technology, Innovation and Citizens' Services on February 12.
The Letter of Intent means the First Nations can begin consultations to develop a sales agreement. If an agreement is reached, consultation between the First Nations and the City of Vancouver about developing the land for housing could begin.
Two years ago, the same trio of bands, with Canada Lands, a federal Crown corporation, purchased the adjacent 52-acre federal portion of the Jericho Lands. The group paid $237 million, or about $4.5 million per acre.
The land could be worth much more today. Last week, a 104-year old house on a 33-foot by 110-foot lot a few blocks away on West 1st Avenue sold for $4.23 million, $750,000 over its asking price, according to agent Brendan Price of Rennie & Associates Realty.
There is no information on what the First Nations have bid for the land, but if the value is close to the original Jericho deal, the 38 acres could be worth more than $170 million.
Other developers need not apply.
“There are no plans to solicit any further bids for the lands as the province has accepted a letter of intent from three First Nations to purchase the site and negotiations are ongoing to finalize an agreement,” according to an email reply from the communications manager for the Ministry of Technology, Innovation and Citizens’ Services.
If a private buyer had approached the province to purchase land, they would have been asked to go through a competitive bid process, the ministry explained. The same rules do not apply to First Nations or to local governments seeking to purchase provincially owned land.
“Any final sales agreement with the First Nations would be based on fair market value for the land as determined by independent appraisals,” according to a ministry statement. “Releasing these lands for potential development could help improve housing supply in Vancouver by increasing available land for development.”
Vancouver developer and architect Michael Geller said he is not surprised about the closed bids. “It is all about native land claims,” Geller said. “If the province refused to sell [to the First Nations] they could be tied up in a long [title claim] process.”
