British Columbia’s Bold Move: Establishing a Land Bank to Drive Economic Growth

British Columbia’s Land Bank: A Bold Move Towards Affordable Housing

The Shift in Policy

The province of British Columbia is taking a major policy shift by creating a “land bank” consisting of public lands to address the pressing issue of affordable housing. Housing Minister Ravi Kahlon recently announced that the initiative, named BC Builds, is expected to be launched early next year. The land bank will include lands owned by the provincial, federal, and municipal governments, and it marks a departure from the previous practice of selling off public lands. Kahlon emphasizes that the era of selling public land is over, and instead, the government will leverage existing public lands and acquire more, especially in proximity to transit infrastructure.

This change in policy is significant considering the actions of the previous Liberal-led provincial government, which sold over 160 public properties throughout British Columbia since 2013. These assets were deemed “surplus,” and the sales were intended to generate revenue. However, this approach led to missed opportunities for developing affordable housing and other crucial facilities, such as schools and healthcare centers. Examples like the Little Mountain site in Vancouver’s Mount Pleasant neighborhood, where 700 low-income individuals were displaced, highlight the consequences of squandering public lands.

The Dilemma of Selling Public Land

The current situation begs the question: Is the selling off of public land ever justifiable? According to Housing Minister Ravi Kahlon, the answer is a resounding no. He firmly believes that selling public lands is a bad idea and leads to missed opportunities. The case of Burke Mountain, where land originally intended for a hospital was sold to private developers, illustrates the repercussions of such actions. When public lands are sold, it often takes years to find alternative parcels for essential infrastructure and housing projects. In the face of increasing pressures for affordable housing, school sites, and healthcare facilities, the selling of government assets and lands is becoming increasingly unacceptable.

The Creation of BC Builds

With the creation of the BC Builds initiative, the government of British Columbia aims to partner with developers to construct housing for middle-income households. However, the government plans to retain ownership through leasehold land arrangements, ensuring the long-term affordability of these housing projects. Municipalities have shown interest in contributing to this initiative, but there may be resistance from some public agencies.

For example, the Vancouver School Board’s consideration of selling the centrally located Kingsgate Mall for redevelopment raises concerns. Minister Kahlon questions the logic behind disposing of such assets when they could be utilized for housing, healthcare, and childcare, particularly in proximity to Skytrain stations. Although there is currently no legislation providing the province with a first right of refusal in such situations, when BC Builds is fully operational, the avenue for involvement will become clearer.

The Need for Strategic Approaches

The frustration with the slow progress at the senior levels of government has prompted the City of Burnaby’s mayor, Mike Hurley, to establish a housing authority. This move will give the city more control over the housing process and allow for accelerated delivery of housing supply. Mayor Hurley believes that relying solely on market supply will not effectively address affordability concerns, emphasizing the necessity of government programs in delivering affordable housing.

Furthermore, when public land is sold, questions often arise regarding the returns obtained on behalf of taxpayers. The City of Vancouver, for example, faced criticism for trading a valuable property for a less valuable one, resulting in the construction of a luxury condo tower instead of social housing. To address such concerns, the city now conducts third-party appraisals of city-owned land worth more than $1 million.

However, cases like the sale of a property to developer PCI Developments in Burnaby raise questions about the need for independent appraisals. The sale was based on a low allowable floor space ratio, despite the developer’s subsequent proposal for a 40-story rental residential and commercial tower. This discrepancy potentially cost the city millions of dollars in missed revenue.

Editorial: A Strategic Approach to Public Land Management

British Columbia’s decision to establish a land bank and cease the selling off of public lands represents a commendable shift in policy. The creation of BC Builds holds great potential for expanding affordable housing and addressing the pressing needs of communities across the province.

The mismanagement of public lands in the past, resulting in missed opportunities and the displacement of low-income individuals, highlights the critical importance of a strategic approach to land management. The government’s commitment to retaining ownership through leasehold arrangements ensures the long-term affordability of housing projects and aligns with the goal of addressing the housing crisis.

However, it is also crucial to address the potential pitfalls of selling public land. The City of Vancouver’s experience with a controversial land exchange and the need for independent appraisals demonstrate the necessity of ensuring transparency and maximizing the benefit for taxpayers.

The Path Ahead

As British Columbia’s land bank initiative takes shape, it is essential for all levels of government to work together collaboratively. Clear guidelines and legislation should be established to provide the province with the ability to exercise first right of refusal when public land becomes available for sale. This will help prevent future missed opportunities and ensure that lands are utilized for the greater public good.

Moreover, the involvement of municipalities and public agencies in BC Builds should be encouraged. It is crucial to foster dialogue and find win-win solutions that prioritize the interests of communities. The Vancouver School Board’s contemplation of selling the Kingsgate Mall site highlights the need for open communication and the exploration of alternative opportunities to maximize the benefits for all stakeholders.

Ultimately, the success of BC Builds and the effective utilization of public lands will require careful planning, effective regulations, and transparent decision-making processes. By embracing a strategic and inclusive approach, British Columbia can address the affordable housing crisis and set an example for other regions grappling with similar challenges.