Push for City of Vancouver for-profit development company fails

Despite Mayor Ken Sim’s ABC party having a majority, a plan that would have seen the City of Vancouver become a housing developer was shot down.

A proposal for the City of Vancouver to create a for-profit real estate development company has failed.

The plan called for the creation of a corporation that would build roughly 4,000 units of market rental housing.

The revenues — if the venture was successful — would then be put back into city coffers for council to use as desired.

But ultimately Mayor Ken Sim and his ABC party failed to get the two-thirds of council votes needed to push the plan through, with all four opposition councillors voting against the proposal.

“Not as mayor of Vancouver – but as a resident of this city, a person who loves this city, who wants to see us succeed – it is disappointing that this incredible project is being politicized right now,” said an apparently exasperated Sim as opposition councillors voiced concern about the city getting involved in a for-profit venture during Tuesday’s council meeting.

Among those who voted against the pitch was OneCity Coun. Lucy Maloney, who pushed back on the idea her opposition was based on politics.

“It’s unfair, quite frankly, to accuse various members of this council of being political when I know we deeply care about doing the right thing,” Maloney said in response to the mayor’s criticism. “It’s just that the right thing can look very different from different life perspectives.”

Others questioned the timing of the city getting involved in development given the economic environment.

“I mean, at a time when other developments for purpose built rental aren’t pencilling out, and we’re hearing lots of pain in the industry, we’re moving ahead with this? And I realize it’s a long game, but what’s the imperative to do this?” Green Party Coun.Pete Fry asked during the meeting.

The result was frustrating for councillors who felt the proposal would have generated significant income for the city.

“Twenty-five 30 years out, you’re looking at $200 million, $250 million that could go towards all those really critical pieces of infrastructure that the public’s talking about,” ABC Coun. Lisa Dominato said during the debate on the proposal.

Because the proposal involved selling public land, it required a 2/3 majority to pass.

The mayor took to social media after the vote to slam the opposition for opposing what he described as a “once-in-a-generation opportunity.”

COPE Coun. Sean Orr clapped back, saying, in part, “public land should be used for the public good.”

In recent days, a number of housing experts had spoken out about the city competing with the private sector, with even city staff acknowledging the plan brought a higher level of financial risk but also saying it would bring the chance of a greater financial return if successful.