Saanich could end up paying $2 million in interest for a $4 million loan to help purchase surplus land from BC Hydro at the

Saanich could pay $2M in interest for a $4M loan for land purchase

Saanich to approve borrowing next week, but has some financial wiggle room

A conditional purchase of land could end up costing Saanich just over $2 million dollars in interest for a $4 million dollar loan towards that land purchase.

Valla Tinney, Saanich’s director of finance, told the public that the municipality could pay about $2 million dollars in interest for a $4-million loan over its duration of 30 years.

RELATED: Saanich in agreement to purchase Kings Road land for $5.5 million

The public heard this figure following a question from Coun. Judy Brownoff as council was preparing to read a temporary borrowing bylaw three times.

The money would help the municipality purchase a 2.2-hectare parcel of land between Kings Road and Haultain Street that BC Hydro deems surplus. Saanich last week announced that it had reached a conditional agreement with the Crown agency to pay $5.5 million for the land. Saanich plans to cover the outstanding balance by tapping into its reserve fund.

Saanich officials, starting with Mayor Fred Haynes, identified purchase of the land as priority as a community group has lobbied Saanich to purchase the land for the purpose of turning into a park. While Saanich has not yet announced plans for the property, last week’s purchase option opens the path to that outcome.

This said, it also announced plans to sell portions of the land, if it cannot raise $2.75 million in funding from other sources, including other local governments, community associations and organizations and residents.

RELATED: Saanich community group welcomes purchase of Kings Park lands

This proviso in the pending purchase of the land could end up changing Saanich’s future interest obligations.

Pending approval of the borrowing bylaw, Saanich has some flexibility, said Tinney in response to a question from Coun. Karen Harper, who wondered whether Saanich could pay the debt off early.

“What we are doing is entering into temporary borrowing while the fund-raising portion of this project goes forward,” she said. “Once we know exactly how much [money] needs to be borrowed, we would be locked in for long-term borrowing at that time. So we have five years from when this bylaw, if it is passed, to bring on long-term debt. So there is some time to figure this out.”

Saanich scheduled final reading of the borrowing bylaw for next week. That is also when it could confirm the transfer of $1.5 million towards the project.


Like us on Facebook and follow us on Twitter

wolfgang.depner@saanichnews.com

Just Posted

Invasive crab spotted near Sooke

Fisheries need more data to know if numbers are increasing

No treatment for highly infectious measles, says doctor

10 cases of measles confirmed in Vancouver as of Friday

Credit card frauds target local businesses: VicPD

Crime Reduction Unit investigating several frauds costing several businesses over $50,000

Fatherhood draws Victoria man to publish Tsimshian colouring book for children

Leon McFadden is working on 11 more books to finish the horoscope series

Victoria shoppers fund Jubilee hospital cardiac monitoring

More than $40k raised over the holidays at Canadian Tire locations

National Energy Board approves Trans Mountain pipeline again

Next step includes cabinet voting on the controversial expansion

POLL: Will you be wearing pink to take a stand against bullying?

Schools and workplaces across Greater Victoria and around the province will be… Continue reading

Reports of rashes prompt closure of all Harrison Hot Springs pools

Public pool available after Fraser Health shut down all five mineral pools until further notice

Girl heard saying ‘Help my Dad’ in suspicious radio message on Vancouver Island

Police asking for help following mysterious signals from somewhere between Comox and Sayward

Two more measles cases confirmed in Vancouver

It brings the number of total cases within the city connected to the outbreak to ten

B.C. Special Olympics officially underway in Vernon

Athlete’s Oath: “Let me win. But if I cannot win, let me be brave in the attempt.”

Vancouver Aquarium wants your help to name a baby killer whale

The public helped name Springer’s first calf, Spirit, and is being asked to help with the second

Guards protest firing of fellow officers charged with assault at B.C. prison

Corrections officers demonstrated in Maple Ridge on Friday afternoon

Most Read