Vancouver expropriates two derelict hotels on the Downtown Eastside for $1 each

Lawyer Evan Cooke said his clients had received at least 10 offers for the properties

City council has voted to seize control of two derelict hotels in Vancouver’s Downtown Eastside after a lawyer for the property owners warned the municipality it is exposing itself to considerable risk of litigation by expropriating them for $1 each.

Council voted unanimously on Wednesday to expropriate the Balmoral and Regent hotels, which Mayor Kennedy Stewart described as a landmark decision.

“Today’s historic vote to expropriate the Balmoral and Regent hotels is a clear message that we are not afraid to use every tool at our disposal to create new affordable homes,” he said in a statement.

“The decision to bring the buildings into public ownership was not taken lightly. Safe, secure homes are desperately needed in our city and today’s decision recognizes the impact these buildings had on the Downtown Eastside community.”

Lawyer Evan Cooke said his clients had received at least 10 offers for the properties, with one in the range of $20 million if the city withdrew its expropriation notice.

The city filed a notice of expropriation for the buildings about 15 months ago after it wasn’t able to negotiate their purchase.

An official said then that it was the first time the municipality had pursued expropriation to provide public housing.

Cooke asked the city to abandon the expropriation and negotiate with the owners on the basis of actual evidence on the market value for the two hotels.

“The owners have communicated over and over again for more than six months that they are willing to convey title of these properties to the City of Vancouver,” Cooke said.

“They have only asked that they be treated fairly in the process and paid market value.”

Cooke also suggested the city allow the owners to negotiate with outside parties.

“(The owners are) not trying to hold on to these properties but it’s a bit rich, I think, for the city to block an open-market sale of these properties when there’s so much interest.”

A staff report also recommended that the city spend $350,000 on each of the buildings to make them secure, which would include installing security systems and conducting regular patrols.

The Balmoral and Regent hotels are known as single-room occupancy buildings, or SROs. They sit opposite each other on East Hastings Street.

It’s a model of housing that sprang up in Vancouver as transient accommodation for loggers and fishermen many years ago, but has since become a source of low-income housing.

More than 300 of the city’s lowest-income tenants were relocated when the hotels were separately ordered shut down in 2017 and 2018 by the chief building officer after they were deemed to be unsafe.

Last year, the city said it also wants to replace 50 per cent of the remaining SROs by 2028, totalling about 2,000 rooms, with new social housing.

Hina Alam, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Missing Maple Ridge man’s car found in Harrison

Michael Denham has been missing since June 27

UFV grads of 2020 honoured in innovative ways

No convocation ceremony due to pandemic, but grads receive ‘celebration box’

Peak on the lower Fraser River expected to arrive Monday

Peak predicted for July 6, with flows decreasing from there: River Forecast Centre

Local property tax late penalties, deadlines different amid pandemic

Province also provides deferrment plan for those who qualify

UPDATE: Missing Chilliwack 35-year-old woman located

The RCMP were asking for the public’s help to find woman not seen in months

Police issue warning after baby comes across suspected drugs in Kamloops park

The 11-month-old girl’s mother posted photos on social media showing a small plastic bag containing a purple substance

Collision results in train derailment just east of Golden

The derailment occurred Sunday night, according to a statement from CP

Lower Mainland woman says llama farming neighbour shot her 11-month-old pup

Young dog was on owner’s Maple Ridge property when it was killed on June 21

B.C. records 31 new cases, six deaths over three days due to COVID-19

There are 166 active cases in B.C., 16 people in hospital

B.C. highway widening job reduced, costs still up $61 million

Union-only project scales back work to widen Trans-Canada

Greater Victoria nanny pleads guilty to child porn, sexual interference charges

Johnathon Lee Robichaud pleaded guilty to slew of sex crimes

Most Read