The Langley Record's Exclusive Expose'
Recently rookie Mayor Rick Green announced in the newspaper (and our blog) that he had hired on a consultant for the Township of Langley to investigate the possibility of establishing a real estate trust and examine the viability of such a plan during this economic downturn.
Most municipalities in greater Vancouver are being very cautious with their real estate dealings and development after the City of Vancouver announced that the ongoing development of the Olympic Village Project, interchangeably referred to as “Southeast False Creek project” recently ran into funding issues that could cost Vancouver taxpayers over a BILLION dollars to bail out, should other funding sources not materialize.
However Mayor Green announced that the Township has hired Mr. Bruce Maitland, “…co-parent of the city’s Southeast False Creek project” (as the Vancouver Sun called him here) as a paid consultant to the Township. You can see from there articles here, here and here that Mr. Maitland was a key stakeholder in Vancouver’s now-troubled Olympic Village project.
The taxpayers of Langley must, in the interest of the principles of openness, transparency, accountability and full disclosure, be informed that Mayor Green’s election team broadcast e-mailed this Endorsement Letter written by new Township consultant Bruce Maitland, to many businesspeople and residents of the Township of Langley, ahead of the November 2008 election. In fact that endorsement was the first any member of the Editorial Board had heard of Mr. Maitland who lives in Willoughby and we think has been given the job of making big bucks off Langley’s land portfolio to pay for the Mayor’s poorly planned 0% tax freeze.
We say think because it seems very unclear to Township Council and the taxpayers as to just how much this consultant will cost the taxpayers and what the EXACT outcome or deliverables Mayor Green plans for us to get from this spending. Councillor Mel Kositsky recently tried to nail down the exact cost of this consulting engagement to the taxpayers at a Council meeting, but the mayor remained very tight-lipped about the details of this contract. So much for openness and transparency.
The only response from Township Hall has been that as this consulting contract was for 20-40 hours of time, therefore no prior council discussion or vote was required. We know Mayor Raging Bull loves to swing the power of his office around kind of like Sam Sullivan used to do in Vancouver. He has done so again by announcing the Maitland contract. Councillor Kositsky, a longtime advocate of proper public process, again tried to query just how much this 20-40 hours is costing us, to which there was no official or public response from Mayor Green.
Mayor Raging Bull, upset by the questions, in fact replied by listing Mr. Maitland’s credentials which sounded good on the surface. Interesting the supposedly transparent Mayor neglected to mention the Olympic Village deal or Mr. Maitland’s election endorsement.
Mr. Maitland is beside the point here. He may be an excellent bureaucrat and he may be the best in his field. We will never have that confidence because we have a rookie mayor who promised transparency and has been showing anything but. His finance committee is stocked with his friends and insiders. He has now overseen and announced the hiring of a consultant who endorsed him in the last election. This is not good government or good business for that matter.
For the loyal blog readers out there, you will note that it is not very often that the Langley Record’s Editorial Board agrees with blog regular posters “Willy Nilly” and “Horny Toad”. But in this instance we must agree with these two that the Township of Langley must exercise an abundance of caution with regards to real estate deals within the Township. Some recent blog posts from these two prolific commentators:
“Regardless of whether the economy went in the dumper or not the MAIN reason for the Olympic village fiasco is due to BAD BUSINESS PRACTICES. Its like putting all your money in the stock market and blaming the market when you loose. It was a gamble and the City of Vancouver lost. Good article in the Sun the other day on WHY cities should stick to what they are supposed to do and stay away from property development. There is a reason WHY property developers make a lot of money (usually) and that is because they know what they are doing.
Good lesson to all cities.”
Horny Toad | 01.16.09 - 5:44 pm
"they will sell for good money after the winter Olympics, and Vancouver (and the Province) will recover the investment costs".
“I see you're into clairvoyance now Boomer. I hope you're right, but unfortunately NOBODY knows and if they say things, as you did, it only means hopeful wishing. There is NO basis for your conclusion. I have been following most of the senior economists and they have differing opinions, and admit to not knowing. So, I wonder how you're able to predict that.
The US thought their real estate had to have hit the bottom 6 months ago, well, guess what, its still falling and they predict the worst is yet to come. Heck, if we can go down South and buy luxury condo's, townhouses, homes, for $100.000.00 in areas where there is no winter, why would anyone buy our condos?
We have major competition now in the Real Estate market, and our biggest buyers were from the US and Asia. Well, the US is not buying now and I have just learned that prices are falling in China, so that is probably going to be lost as well.”
willynilly | 01.16.09 - 10:15 pm
The Langley Record Editorial Board Comments:
Horny Toad believes the City of Vancouver exercised “bad business practices” with their Olympic Village/Southeast False Creek land deal. He believes land deals like this are a “gamble” with taxpayer’s assets at best and “the City of Vancouver lost.”
Willy Nilly opines this Olympic Village/Southeast False Creek land deal was nothing more than “hopeful wishing” and that real estate prices are still going to hell in a hand basket each and every day and the experts “predict the worse is yet to come” as Willy Nilly points out.
What will Green apologists such as Horny Toad and Willy Nilly say now? One of the “co-parents” of this Vancouver Mega Project gone sour, has been given the deed to Langley’s landbase by their Mayor Green.
Time for the rookie Mayor to come clean with the voters. We trust that the next Mayor’s Report will include the full details, terms of reference and costs of this consulting engagement and that he will come clean with his credentials and the fact he endorsed the Mayor. The local papers should also look through their parent company’s archives and report this matter. Our transparent Mayor must be held to account on this issue.
Other Related Reference Articles to Vancouver's Current Olympic Village Crisis:
Olyblog
OlyBlog
UPI
Vancouver Sun
Globe and Mail
Boston.com
Washington Post
Bloomberg