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

MISSING: 32-year-old Heather Limer last seen in Victoria

Limer was last seen in the 800-block of Johnson Street on Feb. 18

Geography among factors behind Saanich’s place on worst intersection list

Site of McKenzie Interchange Project ranks as worst intersection on Vancouver Island

Saanich police look for driver involved in a hit-and-run

Incident happened Monday, Feb. 18 near Admirals Road by Murray Drive

Bungy jump naked in support of mental health programs

Registration open for annual fundraiser for BC Schizophrenia Society

Sooke School trustee and VIHA both call for vaccine education in schools

A renewal of cultural memory is needed, says trustee

Sell regulated heroin to curb B.C.’s overdose problem: report

B.C. Centre on Substance Use points to organized crime and money-laundering as contributing factors

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

Federal fisheries minister calls for precautionary approach to fish farming

Government still reviewing Federal Court’s decision on PRV – Wilkinson

Why do zebras have stripes? Perhaps to dazzle away flies

Researchers from University of Bristol look into why zebras have stripes

Poll: More voters believe Canada doing worse under Trudeau government

22 per cent believed the country is doing better and 27 per cent said things are the same

HBC shuttering Home Outfitters across Canada

North America’s oldest retailer is revamping its various stores to improve profitability

BC SPCA investigates Okanagan woman with prior animal abuse convictions

BC SPCA is investigating a property near Vernon

Man wanted for sex trafficking, confinement may be heading to B.C.

Kevin Myrthil, 26, is also accused of assault on a 19-year-old woman at an Edmonton hotel

Parksville council won’t ban single-use plastic bags

Politicians vote 6-1 against proposed bylaw

Most Read