The xʷməθkʷəy̓ əm (Musqueam), Sḵwx̱wú7mesh (Squamish), and səlilwətaɬ (Tsleil-Waututh) First Nations have a deal in place to buy out the Canada Lands Company's stake in the Heather Lands and Jericho Lands projects, STOREYS has learned.
The buy-out plan was established several years ago, pertains to three properties the two companies acquired together a decade ago, and is scheduled to unfold in phases as the projects progress, according to financial statements of the parties involved.
The Original Acquisitions
Vancouver's three host nations have become an integral part of the real estate industry and that began, in earnest, 10 years ago, with a series of high-profile acquisitions.
In Fall 2014, MST partnered with the Canada Lands Company (CLC) — the Crown corporation that manages real estate on behalf of the federal government — to acquire three parcel of lands in the Lower Mainland: a five-acre site on Marine Drive in West Vancouver, a 21-acre site on Heather Street in Vancouver, and a 52-acre site referred to as Jericho Garrison in Vancouver.
(Some controversy later arose after members of the Squamish Nation said in 2016 that they were not advised of the purchase until after CLC had completed the transaction.)
The Marine Drive Lands, Heather Lands, and Jericho Garrison were acquired for a total of $307 million, according to a CLC financial report for that year, with CLC and MST each holding a 50% stake in the lands.
"The fair value of the Vancouver lands is approximately $307 [million], which was funded through non-interest bearing notes payable with principal amounts totalling $221 [million] and capital contributed by [MST]," said CLC in the report. "The corporation is obligated to repay the entire notes payable balance, of which a portion will be partially funded by long-term receivables from the partner. The longterm receivables from the partners will be repaid from cash flows from the joint ventures."
In April 2016, MST on its own then acquired the 38-acre parcel adjacent to Jericho Garrison, referred to as Jericho Hill, from the Government of British Columbia for $480 million, forming the 90-acre property now known as the Jericho Lands.
For the Nations, the land is owned under MST Partnership and being developed through their joint real estate company, MST Development Corporation.
The Buy-Out Plan
A few years after the original acquisitions, however, in December 2018, MST acquired CLC's 50% interest in the Marine Drive Lands — located at 4195 Marine Drive in the District of West Vancouver near Cypress Park — for $10,587,000.
"While we are pleased to gain full ownership over the 4195 Marine Drive Lands, we're very proud of the work we have done with Canada Lands and look forward to continuing our productive relationship," said Musqueam Indian Band Chief Wayne Sparrow in a press release.
At that time, MST and CLC each still owned 50% of the Heather Lands — formerly known as the RCMP Fairmont Lands — and 50% of Jericho Garrison, but subsequently entered into a forward sale agreement for MST to buy out CLC's stake in those two properties as well, according to a financial document of one of the parties.
"During the year ended March 31, 2020, MST (Jericho) Limited Partnership and MST (Fairmont) Limited Partnership each entered in an agreement to purchase the remaining 50% of the beneficial interest in the land owned by CLC," the document states. "Completion of the transaction is expected to occur in three phases of approximately equal amounts in fiscal years 2025, 2027 and 2030. Payments for the settlement of each phase will ultimately be based on the area included within that phase relative to the area of the total lands. Closing for each phase is to occur immediately following adoption and enactment of acceptable rezoning and subdivision of such phase."
The buildings planned for Heather Lands Parcel B (left) and Parcel F (right) of Heather Lands. / MST Development, Aquilini Development
Reached for comment earlier this week, a representative of the MST-CLC partnership confirmed a buy-out plan is currently in place for the Heather Lands.
"The parties have entered into an agreement where Canada Lands Company will sell its interest in the Heather Lands to the MST Nations upon enactment of rezoning for each of two portions of the site," the representative told STOREYS. "It is anticipated that the first enactment will take place in late 2024, triggering the subdivision and sale of the southern portion of the site."
"Ten years ago, Canada Lands Company embarked on a historic partnership with the MST Nations to redevelop properties in Vancouver, with the intention that the Nations would eventually fully own the properties," added the CLC in a separate statement to STOREYS. "It has been a privilege and an honour to work with our partners to create great communities that have MST culture at their core. We look forward to the next chapter as the MST Nations advance the detailed design and construction of the new neighbourhood at the Heather Lands."
Development applications were recently submitted for both Parcel B and Parcel F of Heather Lands. For the project, Aquilini Development is serving as a development partner that will guide the project through permitting and construction. Aquilini does not have an ownership interest in the Heather Lands like it does in the Willingdon Lands project being undertaken with the Musqueam and Tsleil-Waututh Nations.
Asked about the buy-out plan for the Jericho Lands, the MST-CLC representative said "That is a ways away" and that "The current focus of the MST Partnership and Canada Lands Company is working on an Official Development Plan, which would get the project closer to being able to start construction."
