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News release
October 24, 2007
Two federal buildings yanked from sale
Ottawa should call off the entire transaction - PSAC
OTTAWA – The federal government should call off the sale of nine federal office buildings in the wake of its last minute decision to pull two Vancouver properties out of the transaction, according to the Public Service Alliance of Canada.
Sale of the Sinclair Centre and another office and retail complex in downtown Vancouver had been stalled in late September by an injunction when the Federal Court ruled Ottawa had failed to consult the aboriginal band on whose traditional territory the buildings reside.
Faced with this legal roadblock, Public Works and Government Services Minister Michael Fortier has decided to yank the two Vancouver buildings from the sale.
“We know the sale is a terrible deal for taxpayers. We now also know there are serious legal issues with implications for Aboriginal land claims that have clearly taken the federal government by surprise as well,” said Patty Ducharme, National Executive Vice-President of the PSAC.
This legal development could have broad implications for the overall transaction. At least six of the nine properties sold by the federal government are located on land claimed by Aboriginal groups as traditional territory and are subject to land claims.
“The federal government not only failed to consult the Musqueam Band about the sale of the Vancouver buildings, Canadian taxpayers continue to be kept in the dark about the true costs of this transaction,” Ducharme said.
Minister Fortier has failed to release details of the transaction to the public. But, according to an analysis by the economic consulting firm Informetrica, the transaction will cost taxpayers almost $400 million over the term of the 25 year lease to occupy the buildings as tenants. The immediate impact of the sale and leaseback will be to double occupancy costs for taxpayers. Informetrica's analysis found that taxpayers will remain liable for additional costs and overruns on operations even after they go private.
“The Federal Court has said wait; a Parliamentary Committee has called for a moratorium on the sale; and objections have been raised in relation to Aboriginal title. Mr. Fortier should put the entire sale on hold at least until these serious financial and legal questions have been addressed,” said Ducharme.
Sale of the remaining seven properties is scheduled to close on October 31 and sets the stage for the disposition of an additional 31 properties located across Canada.
For information contact:
Mark Rogers, PSAC Communications, 613-323-1728
Annual Cost to Taxpayers for Nine Federal Buildings
Before & After Sale to Larco Investments
(2007$ millions)
| Property |
Before Sale ($2007) |
After Sale ($2007) |
| Harry Hays Building - Calgary |
$5,020,281 |
$20,284,071 |
| Canada Place - Edmonton |
$7,158,080 |
$22,601,196 |
| CRA Building - Montréal |
$3,902,772 |
$9,124,468 |
| RCMP Building, Montréal |
$3,482,530 |
$6,108,626 |
| T. D'Arcy McGee Bldg., Ottawa |
$7,184,302 |
$16,093,700 |
| Skyline Complex, Ottawa |
$20,154,119 |
$31,480,300 |
| Joseph Shepard Bldg., Toronto |
$7,357,252 |
$17,746,600 |
| Gov't of Can Bldg., Vancouver |
$2,637,251 |
$8,535,991 |
| Sinclair Centre, Vancouver |
$2,113,746 |
$6,536,914 |
| Total Value |
$59,010,332 |
$138,511,866 |
Notes:
- Before Sale includes operating costs plus 2% management fee on costs less net parking revenue
- After Sale includes lease payment, operating costs, and 2% management fee on lease and operating costs
- For Sinclair Centre only office space and parking is considered.
Source: Informetrica
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