UPDATED AT 7:15 AM ON WEDNESDAY, MARCH 21
City of Powell River is taking control of demolishing the former Inn at Westview.
At its committee of the whole meeting on March 13, city councillor Rob Southcott recommended council act on the remediation order it passed in April 2017 and “arrange and carry through with the safe demolition and disposal of the Inn at Westview.”
City staff has been directed to begin research, including requests for quotes to demolish a derelict structure that has dogged the city for years as it has gone back and forth with building owner Seaboard Hotels.
“Let's get on with it; it's time,” said councillor Karen Skadsheim at the meeting.
City chief administrative officer Mac Fraser told councillors it is incumbent on the city to notify Seaboard’s agent, Jack Barr, and legally advise him the city is taking control due to the lack of action.
“It's a matter of notifying Mr. Barr that we consider him to be in breach of that order and we will proceed accordingly,” said Fraser.
The city is currently working with its lawyers on the process and will be advising Barr shortly, according to Fraser.
Barr has not replied to a request for comment from the Peak.
On February 13, Barr appeared before committee of the whole and said Seaboard does not have the money and cannot find any form of conventional financing or other means to tear down the building without the site being developed.
How and when the building comes down will not be known until the dust settles, but it could result in Powell River taxpayers paying the bill.
“This whole issue needs to come to a head,” said mayor Dave Formosa. “We have to be very careful moving forward because no matter what folks think, our powers only go so far, so if the proponent walks away from the property and we're stuck holding the bag, residents are paying for something I'm sure they don't want us to pay for. They want the owner to pay and I agree with that.”
Formosa was not in attendance at the committee meeting but said he would have voted with council in its unanimous decision.
“It's time to call [Seaboard’s] bluff,” said Formosa. “But I also want to caution how we move forward. We can move in such a way that can protect the city as much as possible.”
Councillor Russell Brewer, who recently announced he would not seek a third term in the October 2018 municipal election, pressed council to take a hard line.
“I'm not running again and I'm tired of this naive vision; let's just make it happen,” said Brewer at the meeting. “Let's put some requests for quotes out there and get on with it.”
Brewer said his frustration was directed toward misinformed public opinion and council caving into the pressure.
“Obviously, a lot of people share this naive vision that we can just make it come down and it's not going to cost anything,” said Brewer. “That's fine. I'm willing to now share that naive vision with them.”
Under a remedial action requirement council passed in April 2017, Seaboard is required to demolish and remove the building at its own cost. The company has given no indication it is prepared to do so.
If the city tears down the building and Seaboard does not pay, the cost can be added to Seaboard’s tax notice for the property. If Seaboard does not pay the tax bill the city can then take the property.
The only mechanism the city has to recoup costs is through direct taxation and property seizure, according to Formosa. The city cannot go after any of the company’s other holdings in Powell River, he said.
“We need to play this smart,” said Formosa.
Due to layers of encumbrances involving parking easements on the property, the most recent, independent fair market appraisal the city conducted puts the value of the land at approximately $137,000.
Calling the former Inn at Westview a “canker in the heart of a neighbourhood,” Southcott said the controversy should be looked at from the standpoint of benefit and not just risk, and community values should rank above monetary gain.
“Will it ever cost less to dispose of it than now?” said Southcott. “I don't think there's any reasonable expectation that it would cost less.”
Brewer, who chairs the city’s finance committee, warned of dire consequences to city taxpayers.
“If we inherit a $1 million liability, so be it; that's what people want.” said Brewer. “If they don't take the time to inform themselves properly and actually read all of the information out there and avail themselves of that information, so be it. We can all eat the cost together.”
Brewer added that if, “by some miracle,” the cost of demolition is less than the value of the property “I’ll eat those words.”
Fraser said one possible source of funding could be Municipal Finance Authority of BC, which provides low-cost financing to local governments in the province.
A short-term loan of five years or fewer would increase taxes approximately one and a half per cent over and above the two per cent hike the city is trying to hold to in its current budget planning, according to Brewer.
Councillor Maggie Hathaway said she is confident there is a way to get the money back if the city is left with the bill.
“But it might take 10 years,” said Hathaway. “In the meantime, your taxes go up for that period of time.”
Hathaway added that none of the council members want to put taxpayers on the hook but that it is time to take action.
“Push has come to shove,” said Hathaway, “and I'm ready to do some shoving.”
