City staff are reviewing how a luxury condo development got away with a bargain basement building permit.A permit worth $2.8 
million was issued 
on Nov. 6 for a 28-unit condominium complex on Centennial Drive in downtown Vernon. Valued at only $100,000 per unit on the permit, the two and three bedroom condos are being sold off at prices starting from $239,000 per unit. But according to some city councillors this is not the first time a developer has secured a building permit for less than market value, said Coun. Juliette Cunningham. “I know there has been an issue in the past, that when you apply for a building 
permit it’s not reflective of the actual value,” said Cunningham. “If it’s being undervalued we have to look at why that’s happening.”In 2005, building permits brought in more than $1.1 million into the city’s coffers. Coun. Barry Beardsell said that if developers don’t pay proper value for permits, then residential taxes will have to be raised to make up for any budget shortfalls.“If that revenue is down it will affect the bottom line on taxation,” he said.Beardsell said all developers must be treated equally when it comes to 
issuing permits. He said it’s not right that some are able to get undervalued permits while others pay full price.Although he admits city staff are better than they used to be in assessing permits, Beardsell said there is still room for improvement. He said he has raised the issue from time to time but nothing has changed.“I’m still unhappy with building permits being taken out below cost,” he said. “(Council) could support me in asking for a clear review.”Because of the up and down nature 
of the construction industry, Beardsell said council should also look at setting aside a reserve for permit revenue to save money for when permit revenue drops. Relying too much on permit revenue could be disastrous for the city’s finances, he said.City finance manager Rob Mayne said he has talked to the building permit department about the permits issued for the Centennial Drive property. “Staff are looking into it,” was all he would say.
million was issued 
on Nov. 6 for a 28-unit condominium complex on Centennial Drive in downtown Vernon. Valued at only $100,000 per unit on the permit, the two and three bedroom condos are being sold off at prices starting from $239,000 per unit. But according to some city councillors this is not the first time a developer has secured a building permit for less than market value, said Coun. Juliette Cunningham. “I know there has been an issue in the past, that when you apply for a building 
permit it’s not reflective of the actual value,” said Cunningham. “If it’s being undervalued we have to look at why that’s happening.”In 2005, building permits brought in more than $1.1 million into the city’s coffers. Coun. Barry Beardsell said that if developers don’t pay proper value for permits, then residential taxes will have to be raised to make up for any budget shortfalls.“If that revenue is down it will affect the bottom line on taxation,” he said.Beardsell said all developers must be treated equally when it comes to 
issuing permits. He said it’s not right that some are able to get undervalued permits while others pay full price.Although he admits city staff are better than they used to be in assessing permits, Beardsell said there is still room for improvement. He said he has raised the issue from time to time but nothing has changed.“I’m still unhappy with building permits being taken out below cost,” he said. “(Council) could support me in asking for a clear review.”Because of the up and down nature 
of the construction industry, Beardsell said council should also look at setting aside a reserve for permit revenue to save money for when permit revenue drops. Relying too much on permit revenue could be disastrous for the city’s finances, he said.City finance manager Rob Mayne said he has talked to the building permit department about the permits issued for the Centennial Drive property. “Staff are looking into it,” was all he would say.*****************************
Don Quixote Note:
While they are checking this one out they should also investigate the Building Permit Issued for the BCTC Control Centre.There are only 2 Control centres in B.C. , one being constructed in Langley and the other begun on June 30, 2006 in Vernon.
Why does the building have a $28.7 million permit value in Langley but only $21.7 million in Vernon? Kasian Architecture Ltd. is the designer, Ventana Construction Corp. is the general contractor in Langley of the 5,7499-square-metre (61,860-square-foot) building. The Vernon facility has the same builder, Ventana but I have not yet confirmed the square footage. The DCC charge for the Vernon Building should have this figure.
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