A city of Vernon project to spearhead the development of more attainable housing has ended. Council has approved a motion that will dissolve the Hesperia Land Corporation. Councillor Bob Spiers calls it a social engineering project that never worked. "We sort of moved into an area where the private enterprise does the best job, and we never should have been there. It was a mistake to get into it," Spiers tells Kiss FM. The city-owned corporation was formed five years ago to spur housing on 69 acres near Okanagan Avenue and Apollo Road, but the market never materialized. Mayor Rob Sawatzky says no matter how well thought out the plan seemed to be at the time, conditions have changed. "It's not a workable plan for the long run, so we have to live with conditions as they are." The mayor says Hesperia has a cost, for maintaining it. "So it doesn't make any sense to continue down that path at a cost to taxpayers," says Sawatzky. City administration will report back to council by April 22nd with recommendations regarding the Hesperia lands.
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| Original Projection Net Dividend Return to City of Vernon |
All the costs of Hesperia (including the cost of offsite works)will be in effect capitalized as a prepaid expense on the books of the City of Vernon. The intent will be to cover these costs when these 69 acres are sold to private developers.
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