Earlier this year, in June, the City of Richmond paid $68 million to acquire an industrial property in Richmond that has an assessed value of just half of that price, STOREYS has learned.
The property is 7280 River Road, a five-acre site located between the Fraser River and No. 3 Road, near the Dinsmore Bridge that leads to Vancouver International Airport.
BC Assessment values the property at $31,163,000. The valuation dates back to July 1, 2023, and BC Assessment valuations are not as accurate of a valuation as those conducted by a commercial real estate appraiser, but the significant gap between the BC Assessment valuation and the price tag remains abnormal.
Asked to explain the significant price gap and the plans for the property, the City of Richmond told STOREYS on October 11 that the information is "not available for public release."
7280 River Road is currently occupied by a large one-storey industrial building with tenants including bus transportation company Cross Canada Coach Lines Ltd. and particle accelerator manufacturer Advanced Cyclotron Systems Inc. (ACSI).
The vendor in the transaction who sold the property to the City of Richmond was Ebco Industries Ltd., a metal fabrication company that was founded in Richmond in 1956 and is headquartered at 7851 Alderbridge Way, located directly across the street from 7280 River Road. According to the website of Advanced Cyclotron Systems Inc., it is backed by Ebco Industries, which it describes as an "affiliated company."
Although the City declined to comment on its plans for the site, the property was at the centre of a conflict between Ebco Industries and the City of Richmond over a decade ago.
In 2012, Vancouver-based developer Onni Group submitted a development application for 7731 and 7771 Alderbridge Way, two properties located nearby. In a planning department report from April 2012, City staff discussed several form of development aspects of Onni Group's proposal, including view corridors, also known as view cones.
"View corridors are particularly important due to the proposed riverfront park being developed immediately to the north, and the distant mountain views to the north and east," said City staff. "The spacing between the buildings on Cedarbridge Way allows for good view corridors north-south and sunlight penetration. The low-rise form of the proposed development will allow for the adjacent in-stream development to the east and south to be afforded views of the Fraser River and North Shore Mountains."
In a letter to the City responding to this particular point, Ebco Industries voiced concern about how it would affect the value of their property.
"We are well aware that with the availability of the Canada line [SkyTrain], ours and other adjacent lands in the area have become suitable for redevelopment to 'higher land uses' including commercial and high density residential," wrote Ebco Chairman Helmut Eppich and CEO/President Richard Eppich. "To this end, we, as the owners of [7851 Alderbridge Way and 7280 River Road] for over 44 years, wish to ensure that re-development of any properties in our immediate vicinity do not in any way interfere with the current and future 'highest and best' land use for our lands."
The two executives then noted that land equity is "critical to the operation & success" of Ebco and ACSI and "critical for the future relocation" of the companies.
"We firmly believe that any view corridor considerations, implied or express by the City of Richmond, for this application will adversely affect the market value of our property at 7280 River Road," the Eppichs said. "Your Worship Mayor Brodie and esteemed Councilors, we have owned the property at 7280 River Road since 1972 and we do not now want the future market value or the redevelopment potential of this property diminished or limited or constrained in any way by virtue of the expectations for a view corridor directly opposite our property."
At that time, the Mayor of Richmond was Malcolm Brodie, who remains Mayor to this day, most-recently being re-elected in a landslide victory in 2022.
The Eppichs went on to add that they believed the City's consideration and support for Onni Group's proposal "is equivalent to Council conferring a significant benefit for that developer while at the same time negatively impacting our lands." They did not oppose the development application directly, however, only requesting that the City not grant any view corridor considerations.
STOREYS reached out to Ebco Industries on October 12 to inquire about the transaction, but has not received a response.
It does not appear that the City of Richmond granted Ebco's request, as the minutes of the May 22, 2012 public hearing during which the development application was considered makes no mention of Ebco's concerns, except for its letter, and the development application was granted a second and third reading. At the site, Onni Group has since constructed several buildings as part of its multi-phased Riva project.
