Hesperia Lands - A laudable idea that needs financial Clarity.

The City of Vernon will shortly be approving the loan of $5,000,000 from the City of Vernon's non statutory general reserves to the Hesperia Development Corporation. (Also there will be a $2,000,000 loan from the Sewer Reserves to the Captain Bailey Way Corporation for the construction of 10 Hangers and 10 accompanying residents. {4, 4900 sq ft. hangers with 4, 2000 sq. ft residences and 6, 2916 sq ft hangers with 6, 1299 sq. ft. residences.} )

Even though both of these Corporations do not yet appear on the list of Government Corporations that have received Inspector approval and have been registered with the Registrar of Companies they are either new City controlled Corporations or the successors to the Airport Corporation and the Land Corporations and are legally constituted and will be added to this list in the future.

The Guide for Launching and maintaining a Local Government Corporation provides a reference point for what a municipal corporation can and can not do. I have investigated and questioned the Provincial Government's Local Government Infrastructure & Finance Department and they have been most cooperative in answering my questions. I have explored many sections of the Community Charter from the mundane sections 21 and 24 re the notice requirements of the Partnering Agreement to sections 175,179 and 180 of the act about the requirements to get Elector Approval (such as a counter petition opportunity).

It appears that Section 175 of the act that reads to the effect: "it would depend on whether the agreement was for less than 5 years. If so, no approval is needed, " This apparently in the Provincial Departments Opinion trumps section 180 that reads "180 (1) Subject to subsection (2), a loan authorization bylaw may only be adopted with the approval of the electors.

An opinion from the Provincial Department reads "As I understand it, the under 5 year exemption in the legislation applies to everything, regardless of where else in the information guides it refers to assent/approval. If the loan, agreement, borrowing, whatever it may be called is under the 5 year limit, no elector approval/assent is needed."

So it appears that the City's Lawyers, Administration and Financial Department have followed the letter of the Community Charter so that the decision to provide a $5,000,000 loan and 69 acres of City Owned Land to Hesperia for an announced repayment of $6,410,186 at the end of 5 years (subject to rate adjusted quarterly, presently BMO prime +1/4 = 5%) is correct.

Part of this agreement reads " C- The City Transferred the Lands herein defined to Hesperia for the sum of $3 million, purchased by Hesperia with a portion of the loan monies referred to in section 3 of this agreement." (Attributed value of $43,478 per acre ?)

Now it is obvious that there is much more to this deal that must have been discussed at DARKSIDE Meetings (in camera) about the risk and reward and the financial benefit that will be returned to the taxpayer for the use of $5,000,000 and the transfer of 69 acres of land that will be shortly zoned for development under the control, direction and restrictions of the Hesperia Corporation for the purpose of meeting the Key Objective "To develop the Hesperia Lands with a significant proportion of attainable housing".

I trust that this Political Decision (as laudable as it may be) that will be finalized by vote by the 7 Council Members on Monday(?) will only be taken after the full details of the financial return to the Vernon Taxpayers is revealed, including cash flow projections to determine viability of loan repayment, expected subsidy to attain this attainable housing rather than selling off the 69 acres to free market development, expected proportion of estimated 1000 units to be attainable housings, expected dividends from the Corporation to City, and all other details that one would expect to be debated when taxpayers money is being put on the line.

There appears to be no legal requirement for Electoral approval but the Council always has the right if not the obligation to so submit this for full Public Input on the financial merits of this subsidy and or return before the actual deal is consummated.

I would expect the same details and input re the hangers to be built with a $2,000,000 taxpayers loan at the Airport.

When the average person can clearly say, we will give up "x" number of dollars if we develop that land rather than sell it to developers BUT we will get "y" number of attainable housing units and I think that is fair, then the deal should be made. When the average Councillor can actually say and understand that, than then and only then should they actually vote on this deal.
They can then defend their vote at the Fall elections.