United Way Benefits From Covenant Amendment

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United Way To Receive $60,000 Value

City council approved a staff recommendation that clearly benefits the United Way directly and the property developer indirectly in a complicated Covenant Amendment Application.

As a condition of rezoning property on Meadow Lane and Hammond Bay Rd. there was a covenant in place that would have seen  Century Group Lands Corporation pay the city of Nanaimo the sum of $60,000 to be used for future park amenities within the subject area.

The adopted covenant amendment would see the $60,000 community contribution go directly to the local non-profit organization, United Way Central and Northern Vancouver Island instead of to the city of Nanaimo.

The method by which the United Way would benefit from the $60,000 contribution is not via a direct cash donation but rather through the reduction in the cost of a strata office unit at #9 - 327 Prideaux Street which has an appraised value of $275,000. The office unit would be sold to the United Way for the reduced sum of $215,000, the difference being the $60,000 that would have previously been required paid to the city of Nanaimo.

Who Really Benefits From This Transaction?

Good question. At first blush it would appear that the citizens of Nanaimo have donated $60,000 to the United Way and Century Group Lands Corporation will have the tax benefit that will accrue from donating $60,000 to a non-profit organization.

In today's real estate market it is questionable if the property would sell for the appraised price of $275,000 so this could be a creative way of off loading some excess Nanaimo office strata property.

I can't help but think that somehow or other, the average Nanaimo taxpayer got the short end of the stick on this one. Just call me cynical.