In the section on rent calculation, the City states in the MOU that rent will be at a “rate of 2.25% applied to the aggregate land value.” Is that for 20 years?
It is the current (2022) annual rent, subject to escalation at 3.5% per year.
Does the individual unit appraisal occur now to help determine your pre-payment amount for the fall offer?
No, it doesn’t. The individual unit appraisal applies at lease end and it only applies in determining the payment from the City to each leaseholder at expiry of the lease.
Are the calculations per building or per strata? There will be big value differences depending on whether the location has waterfront or not.
The prepayment amount is for the entire strata and the allocation is based on the current lease, which in many cases is based on the assessed value of your unit as a portion of the total assessed value of the entire strata, or for some stratas by unit entitlement.
There […]
To clarify, is the lease cost based on building square footage, and rent on the building in which the strata lot resides (i.e. Mariner Point), or is it for the entire sq ft of the strata?
It’s by the entire strata. The fact that two stratas might have been on the same ground lease does not matter once they are stratified. It only matters that they have a strata lot lease. Those are unified by a strata plan.
Yes, Mariner Point or any strata with […]
What is the annual rent?
The initial annual rent is calculated as 2.25% of the Aggregate Land Value. The annual rent escalation rate is 3.5% per year.
As I recall, much of this land was contaminated due to previous use. Was this taken into account to determine the value? If not, why not?
Remediation will not be required until the existing building is vacated and demolished. Therefore this is not really a factor in rent for extension.
The City’s calculation for Aggregate Land Value, based on the $485 building square footage (BSF), results in an amount that is double the 2022 Assessed Value for Property Tax, at least at Harbour Terrace. Does this pass the smell test?
The allocation of land versus building values as part of the total assessed value put forward by the BC Assessment Authority is arbitrary, according to the Authority, and should not be used to determine lease end value.
Is outdoor patio space included in sq ft?
Buildable square footage generally excludes patios and balconies.
I understand that the City has incorrect square footage for some strata enclaves, which would (incorrectly) increase their annual rent. If this is the case, what can these stratasdo? Can an individual strata request that the City correct their square footage information before they decide on the annual rent amount?
The aggregate land values in the MOU are total amounts in dollars, with no reference to square footage.
How were the Aggregate Land Values in the MOU calculated? Is there any type of document that explains how the Aggregate Land Values in the MOU were calculated? Do we know the exact basis that the COV is using to determine Aggregate Land Value, if they are backing away from the $485 per BSF metric as part of the calculation?
An aggregate land value can be determined using the building area (in square feet), multiplied by a land value per buildable square foot. Land value per buildable square foot is the freehold value of unimproved land based on actual developed density and zoning for similar land parcel sizes.
The agreed […]