Royal Canadian Legions (RCL) are rich in property but low in funds and membership, which has resulted in some unique agreements with developers for some prime legion sites.
There are 158 Legions across B.C., including 10 in Metro Vancouver, but dwindling membership and existing regulations make it difficult for the legions to pay for maintenances, taxes and utilities on their facilities, most of which are owned outright by the RCL according to Inga Kruse, executive director of the RCL BC/Yukon Command & Legion Foundation.
Kruse said legions have been looking to private developers for a solution, and with some success.
A recent example is in Prince George where the local RCL closed this year and the downtown building was sold to a private investment group. Declining membership at legions makes it hard to cover annual taxes and utilities bills. In the Prince George case, the property taxes were $5,000 a year and the monthly hydro bill was $1,600.
"Prince George is a win-win situation," Kruse said, explaining that, after the possibility of the legion closing due to financial pressure was brought to public attention, private investors stepped forward to buy the large building.
"We had multiple bids on the property, which drove the price up," she said, adding that the Prince George RCL then found smaller, more affordable facilities in the city.
In Burnaby, North Burnaby Legion Hall No. 148 has struck a unique joint-venture agreement with developer Epta Properties. The legion sold its property on Hastings Street to Epta, which will build a five-storey building on the site. The legion will retain strata ownership of one-third of the property and Epta will build condominiums and retail on the remaining area, under a separate strata agreement. The legion closed December 31 and it is expected to take two years to complete the new facilities.
According to Kruse, the Aldergrove Legion is also considering development of property it holds that has "excellent highway frontage."
Many legions are in large, aging buildings, but existing legion bylaws do not allow RCLS to use money they raise from annual poppy sales and other events to repair buildings, Kruse noted.
Each year B.C. and Yukon Legions raise about $2.1 million in poppy sales and handle an average of $21 million in sales through the BC Lottery Corp.
"All of the money raised is spent on community projects and charities," Kruse said, adding that, last year, RCL members volunteered 600,000 hours in community work and that the Royal Canadian Legion is one of the largest providers of social housing in B.C.
from Western Investor January 2013
