Archive for March, 2006

Opinions split on new stadium

Tuesday, March 7th, 2006

Open-house participants weigh merits of 15,000-seat waterfront facility

John Bermingham
Province

This is an artist’s rendering of the new Whitecaps stadium. The team showed off the stadium’s plans yesterday. Photograph by : Wayne Leidenfrost, The Province

The ball is up in the air over the proposed waterfront soccer stadium.

At an open house in the old Woodward’s building yesterday, opinions were split on the 15,000-seat stadium proposal.

The privately funded Whitecaps Waterfront Stadium, which could cost up to $70 million, would be built over the CPR rail yards east of Canada Place by mid-2009.

The outdoor arena would be home to the Vancouver Whitecaps men’s and women’s teams and it would host concerts.

Critics cited noise and traffic problems, and doubted whether waterfront land is the best place for a sports stadium.

“How many stadiums do we need?” said Vincent Fodera, who runs a downtown backpacker hostel. “It looks like a square box sitting on top of a rail car.”

“There’ll be rock concerts there, it won’t always be the Vancouver Symphony,” said Don Larson of the Crab Park Society, which champions the public park several blocks from the stadium.

Whitecaps owner Greg Kerfoot owns the 10.5-hectare site, two-fifths of which will be taken up by the stadium, and three-fifths of undeveloped waterfront land.

“[The stadium] is a wedge to develop the rest of the lands,” said Stephanie Smith of the Downtown Eastside Residents Association, also a local resident.

“The [Whitecaps] are not talking about the plans for the rest of the lands.”

Smith said she’s worried about the prospect of thousands of drunken fans disrupting the neighbourhood, making noise and hassling local residents.

Whitecaps president John Rocha said supporters like the transit-friendly location and the creative use of the land.

“Nobody gets displaced. It gets built over railroad tracks,” he said.

Rocha said he’s building support from Gastown merchants and has met with a coalition of Downtown Eastside groups recently.

“We think we can build this as a true community asset, that would fit well with all the neighbourhoods in our area,” he said.

About 10,000 people have signed up for priority-purchase rights to stadium events, and deposits are placed on 40 suites.

In a Mustel poll in October, 71 per cent of people approved it and 15 per cent were opposed.

Consultants are reviewing the idea and their report goes to city council in May.

It’s up to council whether a rezoning application can go ahead.

The remaining open houses this week are today at the Storyeum in Gastown, tomorrow at Simon Fraser University’s Harbour Centre campus and next Saturday at the Vancouver Public Library.

© The Vancouver Province 2006

Canada’s forgotten ocean

Monday, March 6th, 2006

After 400 years of deadly excursions, sea may soon be navigable

Randy Boswell
Sun

VANCOUVER SUN FILES Norway’s Roald Amundsen became the first explorer to traverse the Northwest Passage, raising alarms in Canada.

Stunning for its polar seascapes, rich in history and resources, yet still one of the planet’s most mysterious places, the Arctic Ocean is an immense but largely overlooked part of Canada.

It is immensely important, too — even hailed as a “new Mediterranean” by those who envision this country as the key portal to a new circumpolar sphere of geopolitical power in an age of climate change.

But the sea that didn’t make it into our national motto remains, for now, at the margins of Canadian consciousness, despite its sprawling presence across our northern frontier, despite its increasing strategic significance, despite the fact that much of our early history unfolded there — and much of our future is expected to.

The Arctic Ocean is the ice-lined edge of home for tens of thousands of Canadians — mostly Inuit and other first nations people — and the fragile domain of polar bear and narwhal, signature species of the North.

And it is, undoubtedly, a sea of superlatives.

It includes the great Arctic archipelago from Banks Island in the west to Baffin in the east to Ellesmere in the north — a 1.3-million-sq.-km. swath of land, ice and water comprising the world’s largest group of islands.

Its mainland shore stretches some 30,000 km from the northwest corner of the Yukon to the tip of Labrador peninsula, sculpting the saltwater coasts of the Northwest Territories, Nunavut, Manitoba, Ontario and Quebec along the way.

Yet scientists have described this Arctic vastness, as recently as 1990, as “Canada’s missing dimension” — a little-understood ocean, with an almost unexplored seabed, swirling around largely unstudied lands.

Mythologized in the 19th century as a fatally inhospitable corner of the planet, the traditional image of the Arctic as a frozen wasteland is only now melting away — and still more slowly than the permafrost and polar ice are thawing from global warming.

“The Arctic is in the process of transformation from a land of the imagination to a place in the real and everyday world,” archeologist Robert McGhee has written in The Last Imaginary Place, A Human History of the Arctic World. “This clear-sighted view of the Arctic will be needed if the peoples to whom it is home, and the national governments that claim sovereignty in its territories, are to cope with the problems that are converging on the region from several directions.”

The transformation McGhee identified is being hastened, above all, by the increasing likelihood of a reliably navigable Northwest Passage in the near future — with oil tankers and other freighters plying an unfrozen ocean.

Remarkably, the prospect of a clear sea route across the top of North America was the original impetus for exploring Canada’s Arctic waters more than 400 years ago.

Frobisher, Hudson, Davis, Baffin — the English sailors whose Arctic expeditions are still prominently commemorated on Canada’s maps — failed in their quests for a shortcut to China.

But they did chart a path toward the heart of North America. And fur-trading forts along Hudson Bay gave the British their first serious foothold in the future Canada, and set the stage for the European settlement and development of the old northwest.

Seeking an Arctic sea passage remained an obsession for British, American and Scandinavian explorers throughout the 1800s, as the ill-fated Sir John Franklin and a steady stream of would-be rescuers sailed to glory or doom throughout the ice-choked archipelago.

But even by the early 1900s, as Sir Wilfrid Laurier was famously declaring that the 20th century would belong to Canada, it still wasn’t clear whether the Arctic islands did.

In 1902, the Norwegian explorer Otto Sverdrup discovered three large islands west of Ellesmere. And in 1906, the year “From Sea to Sea” had its first ceremonial use in Canada, Norway’s Roald Amundsen became the first explorer to traverse the Northwest Passage — a feat that raised further alarms about Canada’s territorial claims in the North.

Ironically, it was not until 1921 — the year Canada adopted A Mari usque ad mare as its motto — that Icelandic-Canadian explorer Vilhjalmur Stefansson truly awakened the nation to its forgotten Arctic Ocean frontier.

It was his publication of The Friendly Arctic — an account of the polar expeditions during which Stefansson led several crewmen to their deaths but discovered some of the world’s last major land masses — that nudged the North into the Canadian psyche.

THE THIRD SEA:

Northern aboriginal leaders and top Arctic scientists are echoing a call by the three territorial premiers to rewrite the national motto to reflect the true vastness of the country and formally declare Canada a nation that extends ‘from sea to sea to sea.’

The premiers — Dennis Fentie of the Yukon, Joe Handley of the Northwest Territories and Nunavut’s Paul Okalik — say it’s time to amend A mari usque ad mare, the Latin version of “From sea to sea” that appears on the country’s coat of arms.

The change, they say, would acknowledge the country’s Arctic Ocean frontier along with its Atlantic and Pacific coasts, and symbolically assert Canadian control over the Northwest Passage and other disputed sites in the North.

Source: CanWest News Service

© The Vancouver Sun 2006

MP wants inquiry into leaky condos

Sunday, March 5th, 2006

JOHN CUMMINS: Tory calls for compensation

John Bermingham
Province

A common sight around Vancouver during the leaky condo era. — PROVINCE FILE PHOTO

Tory MP John Cummins wants a Gomery-style inquiry to blow the tarps off the federal government’s role in the leaky-condo crisis.

In a letter to Diane Finley, the minister responsible for Canada Mortgage and Housing Corporation, the Delta-Richmond East MP called for a judicial inquiry and fair compensation for leaky-condo owners.

“[Federal officials] behaved like a bunch of Kingsway used-car dealers,” said Cummins Friday. “I think it’s scandalous.”

A few months ago, Cummins went public with documents showing CMHC officials knew as far back as 1981 there was going to be a leak problem.

But CMHC did nothing to change the National Building Code or alert the public of the potential problem.

“What went on needs to be exposed. That kind of activity destroys public confidence in the civil service,” said Cummins.

Cummins wants homeowners to be fairly compensated, based on a formula decided by the courts.

“There are lives that have been ruined by this,” he said.

“If you want to put a pain and suffering component to the restitution, the costs would simply be out of sight.”

During the federal election, Conservative Leader Stephen Harper promised to review CMHC’s handling of leaky condos.

Carmen Maretic, who runs a B.C. housing support group based in Coquitlam, says an inquiry into CMHC is long overdue.

“Should a Crown corporation be protecting the integrity of the housing industry?” said Maretic. “It appears most of its energy is placed in keeping a vibrant real-estate market and not looking at the longer-term picture.”

“It’s never too late to get to the truth,” said leaky-condo owner James Balderson, who spent $161,000 on repairs to his Fairview Slopes townhouse.

“What’s missing in this fiasco so far is money for the purchasers of leaky condos,” he said.

Dan Healy, the owner of leaky condos in Coquitlam and Port Coquitlam, who is suing CMHC for negligence, said an inquiry is long overdue.

“There’s got to be a review,” he said, “CMHC’s role in this disaster has to be reviewed.”

B.C. leaky-condo owners are involved in a proposed class-action lawsuit against CMHC, seeking full compensation for their repairs.

Diane Finley did not respond to interview requests Friday.

© The Vancouver Province 2006

54 apartments in 33

Saturday, March 4th, 2006

Tower near Chinatown mostly bought on first day of selling

Michael Sasges
Sun

Panelling will hide dishwasher, hood fan and fridge in the homes and, from fridge to main entrance, a stacking washer/dryer and storage. Keep your eyes on the red vases. Photograph by : Glenn Baglo, Vancouver Sun

Panelling will hide dishwasher hood fan and fridge in the homes and from fridge to main entrance a stacking washer/dryer and storage. Keep your eyes on the red vases. Photograph by : Glenn Baglo, Vancouver Sun

The one built-in that isn’t is the kitchen island. It’s on wheels (right). Photograph by : Glenn Baglo, Vancouver Sun

The 54 apartments in 33 will not overwhelm with their size but they will with their design and finishes. They are one-bathroom homes for example but those bathrooms will be more typical of the en suites found in multi-bathroom homes. Entrance to the bathroom will be through a sliding frosted-glass door (top left). Photograph by : Glenn Baglo, Vancouver Sun

Tub and shower will be separate (top right). The vanity not shown will float a mirror and a recessed medicine cabinet also mirrored above. Photograph by : Glenn Baglo, Vancouver Sun

Open storage will top walls dividing bathroom and bedroom (top right) and bathroom and office (facing page) and will top the outside wall against which the storage and kitchen cabinetry will be placed. Photograph by : Glenn Baglo, Vancouver Sun

Open storage will top walls dividing bathroom and bedroom (top right) and bathroom and office (facing page) and will top the outside wall against which the storage and kitchen cabinetry will be placed. Photograph by : Glenn Baglo, Vancouver Sun

Open storage will top walls dividing bathroom and bedroom (top right) and bathroom and office (facing page) and will top the outside wall against which the storage and kitchen cabinetry will be placed. Photograph by : Glenn Baglo, Vancouver Sun

IN THE EYES OF THE BEHOLDERS: How many Vancouvers can one photograph show? Possibly as many Vancouvers as there are sets of eyes to view this photo taken from the Pender Street block in which the 33 homes will rise and showing the street’s westward march downtown. Some people older readers perhaps will see mostly the Sun tower on the left and if familiar with this stretch of town the Lotus Hotel across Pender Street from the once-upon-time tallest building in the British Empire. Pender does not end at the Vancouver Vocational Institute but jogs (to the right in the photo). Others younger readers perhaps will see International Village and Tinseltown below the Sun tower. The bus hides hoardings advertising the next opportunity to own a home in this neighbourhood. It is called Espana and it will be offered by the Henderson development company owner of International Village. Photograph by : Glenn Baglo, Vancouver Sun

33

Presentation centre: 81 West Pender, Vancouver

Hours: 11 a.m. – 4 p.m.

Telephone: 604-623-3302

Web: 33living.ca

Project size: 63 apartments and penthouses, nine-storey building

Residence size: 1 bedroom, from 525 sq. ft; 1 +den, from 770 sq. ft; 1+ den penthouses, from 1,013 sq. ft. – 1,017 sq. ft.; 2-level penthouses, from 1,244 sq. ft.

Prices: From about $289,900

Developer: Georgia Laine Developments

Architect: Acton Ostry

Interior design: Lucid

Tentative occupancy: January, 2008

– – –

The 33 development is the second new-home opportunity in, or near, Vancouver’s Chinatown to come to market in a couple of months and the second new-home project in the Lower Mainland in a couple of weeks to sell out, or almost, in a couple of days.

The other project that is attracting new-home shoppers to one of Vancouver’s oldest neighbourhoods is East. It, too, is located on Pender Street, one block east of 33.

The other project that enjoyed a similarly robust response is the Lotus. It’s located in Richmond.

Bob Rennie is marketing East — and converting a heritage building next door into his corporate office and art gallery.

The partnership of Jason Craik and Cameron McNeill is marketing 33. Their MAC Marketing Solutions is also marketing Lotus.

”[Last] Saturday was our very first day of selling and the response exceeded everyone’s expectations,” Craik reports.

”When planning 33, developing a clear picture of the type of people who would love to live in the heart of Crosstown, Vancouver’s most historic community, on the Silk Road to Chinatown and just a block from the Chinatown Gates was easy.

“Some members of our MAC team were just those type of people. In fact, two of the three salespeople at 33 have bought for themselves and plan to live there.

”We knew people would love to live there, we were just surprised to see so many of them come in so fast.”

On Saturday, 47 sales contracts were signed. By Wednesday, more than 50 had been signed. ”On Saturday, a young, hip group of Vancouver actors, entrepreneurs and professionals, mostly singles and young couples planning to live there, came in and bought 80 per cent of the homes,” Craik comments.

The 33 developer is Robert Wilson – and he is apparently very alert to the circulation of concerns about Winter Olympic construction jeopardizing the pace and cost of new-home construction.

”He promised a room full of Vancouver realtors, and continues to promise, to deliver the exact product you see in the show suite on time and on budget,” Craik says.

”He’s exactly the type of developer we love to work with. He’s hands on and heavily, personally invested in the project’s success.”

Wilson has been a developer for 10 years and his most recent new-home project, the Hub in the Vancouver’s Mount Pleasant neighbourhood, sold out, Craik reports.

”Robert is currently working on properties in North Vancouver, Port Moody, West Broadway, and Main Street which are in different stages of pre-development. Robert’s philosophy is to have people living in smaller projects, 24 to 70 units, in which they will commune with each other, in work, entertainment, family, creating a village-like atmosphere.”

The 33 buyers are very alert to the changes coming to the neighbourhood, Craik reports.

”Many of the people we’re meeting at the presentation centre already know about the city’s multi-million-dollar investment in the Carrall Street ‘greenway’ that will connect False Creek and the Inner Harbour. Even more know that Woodward’s is coming and what a profound change it will make to the surrounding community.”

The Carrall ”greenway” is ”up” the block from the 33 site. The Woodward’s project is around the corner from 33, at Hastings and Abbott.

The 33 buyers are equally very alert to the historical quality of their neighbourhood, people who would want historic references in their architecture. ”From Pender, you [will] notice a lot of horizontal and vertical lines with elements of warm, coloured glass that, when they catch the light, make the front of the building subtly resemble fabric, a tribute to its ‘Silk Road’ location,” Craik says.

Secure underground parking and ”cool” layouts under 10-foot ceilings are “interior” reasons for the pace of sales at 33, Craik thinks.

”The developer is offering a level of finishing that you have to see for yourself to believe,” he says. ”It’s as good as anywhere in Vancouver.”

The show home is a memorable exercise in making more from less. ”It’s really cool,” Craik comments. ”You really just want to move right in. It feels way bigger than it is due to the layout with its intimate entrance, but main room with its 10-foot ceilings beckoning you on.”

© The Vancouver Sun 2006

New-home buyers, sellers increasingly rely on floor plans

Saturday, March 4th, 2006

Lifestyle as much as living space is revealed; think big master bedroom, but small kitchen

Christina Symons
Sun

In the buying and selling of a new home in design-saturated North America, floor plans have achieved near Great Book’ status, almost as alluring, to buyers, as “sumptuous” finishes or ”sleek” appliances.

Skip the superlatives. Hand out the floor plans.

Both buyers and armchair connoisseurs are snatching more than passing glances. From decor magazines to condominium sales centres, audiences are demanding to study plans. And thanks to exposure to a wealth of home television shows, as well as educational features in design publications such as Dwell and Style at Home, new-home shoppers understand basic plans and engage in design dialogue better than ever.

At Metropolitan Home, last year’s decision by editors to drop floor plans generated more letters to the editor than any other single subject in the history of the internationally circulated, New York edited magazine. Readers were not impressed.

The magazine’s Michael Lassell — himself a former draftsman — explains why the consumer market is demanding more information this way:

“The world is generally, as we say in media, much more transparent. The Internet has made people more savvy about nearly everything and the explosion of home-design television-shows has certainly taught many viewers about plans.”

According to Lassell, who reviews piles of elaborate plans at the magazine, a floor plan reveals much more than the number of rooms and square footage. A plan can define the very nature of a home and its owners.

“Certainly it can tell you about size; which tells you a good deal about people’s life priorities as well as spatial priorities,” Lassell explains. “If the kitchen is tiny and the master suite enormous, you’re probably not too far off in assuming that not much cooking goes on in this house.”

At Dwell magazine, edited in San Francisco, floor plans get priority, senior editor Andrew Wagner reports, with readership split 50 per cent design professional and 50 per cent consumer.

Professionals demand them and the consumer audience appreciates the opportunity to be exposed to that level of design detail, he says.

“Plans reveal siting and details that photographs cannot convey but are absolutely crucial to the success of a structure,” notes Wagner.

In a modern home a floor plan will convey its openness, especially in the kitchen, living and dining spaces, says Wagner.

The use of floor-to-ceiling windows as well as walls that “disappear” mark simple connections to the outside world and are defining characteristics of modern designs.

“You will often see one room flowing seamlessly into the other with very little, or often no, definition,” notes Wagner.

Style at Home, edited in Toronto, is bursting with fun and practical stories about beautiful homes, small spaces, renovation projects, bathrooms, kitchens and gardens.

Editor-in-chief Gail Johnston Habs says floor plans are essential for her readers to understand the reality of these types of features.

“A floor plan, which offers a bird’s-eye view of a room or home, helps to explain the over-all design and layout, and how rooms relate to each other,” says Habs.

Habs notes that because space limitations mean the magazine cannot “play” floor plans, big elements are distilled to the essentials — walls, doors, windows, stairs, appliances, major furniture — for easy reading and understanding.

Coincidentally, these are the same kinds of plans often used in new-home sales packages.

“Floor plans show how rooms relate to each other,” notes Habs. “By revealing the significance and location of particular rooms. Is the living room small, while the family room or entertainment centre is large? Is there a kitchen/great room combo? A floor plan suggests the home’s lifestyle possibilities.”

And possibilities should be top of one’s mind when home buyers are contemplating a development that exists only on paper. Unlike fantasizing over drop-dead gorgeous magazine spreads, consumers are making one of the most important decisions of their lives, based predominantly on pictures, plans and brands.

Heather Harley, marketing manager of Vancouver’s Concert Properties, explains that with the acceptance of “pre-selling” as an industry standard, floor plans have become even more important to new-home buyers.

“The opportunity to actually walk through finished homes prior to making a buying decision has become quite rare, and floor plans are often the only means a buyer has of envisioning the flow and layout of their new home,” notes Harley. “As a result, consumers rely on clean and clear floor plans when making their buying decision.”

One of the most essential considerations when reviewing a floor plan is the “efficiency” of a suite. Harley notes that many consumers have questioned the ability of today’s developers to fit two bedrooms and two bathrooms into less than 800 square feet while other developers are offering the same layout in twice as much space. But for her, the success of any one plan boils down to how it’s organized.

“A 600 square-foot suite can feel quite small if a great deal of space has been dedicated to hallways, entries and unusable transition areas within the suite,” says Harley. “Alternatively, a 600 square-foot suite can feel quite spacious if the space has been efficiently planned and organized with little ‘wasted’ space.”

Patricia Glass, sales and marketing coordinator, Platinum Project Marketing, notes that it’s essential for consumers to select a floor plan in line with their particular way of life. If you enjoy entertaining outside for example, then a large balcony might be a deciding factor.

Glass agrees that efficiency is paramount, especially in tighter units. She suggests avoiding plans that show long corridors or other wasted space if you want the most from your floor plan. Corner units are always popular as the amount of natural light increases with the additional windows. Plus exposure to sunlight can be controlled by selecting a floor plan based on orientation of the unit.

But ultimately, it comes down to the sum total of how you want to live.

“People should look for what will best suit their lifestyle,” says Glass. “For example, for those who prefer to work from home, an enclosed balcony would convert to the ideal home office.”

Christina Symons is a Sunshine Coast journalist and development-industry consultant.

© The Vancouver Sun 2006

Tax man constantly closing noose on those who don’t pay

Friday, March 3rd, 2006

CRA finding new tools in quest for avoiders, including use of snitch lines, lawyer advises

Fiona Anderson
Sun

Dave Morgan of CRA shows off the web site that explains how you can voluntarily ‘correct’ tax filings. Photograph by : Ian Smith, Vancouver Sun

Canadians may give many reasons for fudging their tax returns: the government has a surplus; members of Parliament are overpaid; or in the case of “detaxers,” taxing is illegal. However, there is one very good reason to be open and honest when telling the government exactly what you made: it’s a crime not to.

“Canadians are very highly taxed, so they naturally say they don’t want to pay any more than they need to,” said Paul DioGuardi, a tax lawyer with offices across Canada, including Vancouver, “but it’s not true. You [must] pay your taxes.”

People don’t realize how serious tax evasion is, or they just think they won’t be caught, DioGuardi said.

Being caught can lead to fines of up to 200 per cent of the tax sought to be evaded, plus five years in jail. On top of that, the taxes, plus daily interest, still must be paid.

“The daily interest alone can wipe you out,” DioGuardi said.

In 2004, 68 per cent of people surveyed told the Canada Revenue Agency that, given the opportunity, they would hide income or overstate an expense or deduction to avoid paying tax. Seventy-six per cent of those surveyed believed the CRA would not know about income received in cash unless the taxpayer declared it.

Yet, in the last fiscal year, the CRA yielded 250 convictions for tax evasion or fraud, which led to fines of $13.3 million and more than 26 years worth of prison sentences, the agency’s annual report to parliament said.

Some evasion can be inadvertent, such as seniors who don’t realize they must include foreign pensions as part of income, DioGuardi said. “If you are a resident of Canada, you [must] pay tax on your worldwide income,” he said.

The most common forms of evasion — not reporting self-employment income, over-stating expenses, or not declaring money made offshore — are usually not so innocent, he said.

Also, it’s becoming harder and harder to get away with tax evasion. Even if money is hidden in so-called tax havens, governments, in the name of anti-terrorism, have new sophisticated techniques of finding it, DioGuardi said.

CRA’s “snitch line” enables disgruntled ex-partners or jealous neighbours to anonymously tip off the government of possible under-reporting, he said.

In 2001, CRA received more funding to carry out more audits, according to its annual report.

Also, the CRA’s extensive powers to gain access to documents from all kinds of sources, including the taxpayer’s bank or accountant, it is only a matter of time before cheating taxpayers are caught, DioGuardi warns. There is no statute of limitations, he said.

However, there is possible relief for Canadians who have been less than completely honest when filing their tax returns: Canada’s volunteer disclosure or tax amnesty program.

“Canada has one of the best amnesty programs in the world,” DioGuardi said. “The beauty is you can repair a bad mistake [and] get on with your life.”

Under the program, taxpayers can approach the CRA about omissions in previous tax filings. In return, the CRA will look at granting the taxpayer concessions, such as forgoing criminal prosecution and lowering the fines that would be payable, said Dave Morgan, CRA’s communications director. The taxpayer will still be required to pay the tax and interest, he said.

If the CRA already has the taxpayer in its sights, it’s too late, Morgan warned. The disclosure has to be completely voluntary and not because the taxpayer is being audited, he said.

Also, the taxpayer must be completely honest and forthcoming about previous shortcomings. If the information is less than the whole truth, any agreement with the CRA is void and the government can use the information the taxpayer provided to go after the taxpayer.

Approaching the CRA in hopes of obtaining a reprieve from past sins can be a delicate situation, warned DioGuardi, who has written a book on the topic. If the negotiations fall through, all the information provided to the CRA can be used against the taxpayer.

The CRA allows “no-name” disclosure to enable discussions to take place anonymously until a deal is reached. Only then is the taxpayer required to provide his name. DioGuardi cautions that only a lawyer can protect the client’s identity if a deal is not reached. Even an accountant, or a friend, acting on behalf of the no-name taxpayer, can be subpoenaed to provide information, including the taxpayer’s name. Only a lawyer has solicitor-client privilege.

However, Morgan says that if the disclosure is voluntary and the taxpayer is completely honest and forthcoming, a deal will be struck, so there is nothing to worry about.

Most people in Canada are honest, Morgan said.

“The vast majority of taxpayers in Canada want to comply,” he said. “It’s just a matter of us providing them with the means and information they need.”

Taxpayers who aren’t sure what needs to be reported and what can validly be deducted can check out CRA’s website at www.cra-arc.gc.ca.

Those who want to seek amnesty can go to DioGuardi’s website at www.taxamnesty.ca.

© The Vancouver Sun 2006

Tax man constantly closing noose on those who don’t pay

Friday, March 3rd, 2006

CRA finding new tools in quest for avoiders, including use of snitch lines, lawyer advises

Fiona Anderson
Sun

Dave Morgan of CRA shows off the web site that explains how you can voluntarily ‘correct’ tax filings. Photograph by : Ian Smith, Vancouver Sun

Canadians may give many reasons for fudging their tax returns: the government has a surplus; members of Parliament are overpaid; or in the case of “detaxers,” taxing is illegal. However, there is one very good reason to be open and honest when telling the government exactly what you made: it’s a crime not to.

“Canadians are very highly taxed, so they naturally say they don’t want to pay any more than they need to,” said Paul DioGuardi, a tax lawyer with offices across Canada, including Vancouver, “but it’s not true. You [must] pay your taxes.”

People don’t realize how serious tax evasion is, or they just think they won’t be caught, DioGuardi said.

Being caught can lead to fines of up to 200 per cent of the tax sought to be evaded, plus five years in jail. On top of that, the taxes, plus daily interest, still must be paid.

“The daily interest alone can wipe you out,” DioGuardi said.

In 2004, 68 per cent of people surveyed told the Canada Revenue Agency that, given the opportunity, they would hide income or overstate an expense or deduction to avoid paying tax. Seventy-six per cent of those surveyed believed the CRA would not know about income received in cash unless the taxpayer declared it.

Yet, in the last fiscal year, the CRA yielded 250 convictions for tax evasion or fraud, which led to fines of $13.3 million and more than 26 years worth of prison sentences, the agency’s annual report to parliament said.

Some evasion can be inadvertent, such as seniors who don’t realize they must include foreign pensions as part of income, DioGuardi said. “If you are a resident of Canada, you [must] pay tax on your worldwide income,” he said.

The most common forms of evasion — not reporting self-employment income, over-stating expenses, or not declaring money made offshore — are usually not so innocent, he said.

Also, it’s becoming harder and harder to get away with tax evasion. Even if money is hidden in so-called tax havens, governments, in the name of anti-terrorism, have new sophisticated techniques of finding it, DioGuardi said.

CRA’s “snitch line” enables disgruntled ex-partners or jealous neighbours to anonymously tip off the government of possible under-reporting, he said.

In 2001, CRA received more funding to carry out more audits, according to its annual report.

Also, the CRA’s extensive powers to gain access to documents from all kinds of sources, including the taxpayer’s bank or accountant, it is only a matter of time before cheating taxpayers are caught, DioGuardi warns. There is no statute of limitations, he said.

However, there is possible relief for Canadians who have been less than completely honest when filing their tax returns: Canada’s volunteer disclosure or tax amnesty program.

“Canada has one of the best amnesty programs in the world,” DioGuardi said. “The beauty is you can repair a bad mistake [and] get on with your life.”

Under the program, taxpayers can approach the CRA about omissions in previous tax filings. In return, the CRA will look at granting the taxpayer concessions, such as forgoing criminal prosecution and lowering the fines that would be payable, said Dave Morgan, CRA’s communications director. The taxpayer will still be required to pay the tax and interest, he said.

If the CRA already has the taxpayer in its sights, it’s too late, Morgan warned. The disclosure has to be completely voluntary and not because the taxpayer is being audited, he said.

Also, the taxpayer must be completely honest and forthcoming about previous shortcomings. If the information is less than the whole truth, any agreement with the CRA is void and the government can use the information the taxpayer provided to go after the taxpayer.

Approaching the CRA in hopes of obtaining a reprieve from past sins can be a delicate situation, warned DioGuardi, who has written a book on the topic. If the negotiations fall through, all the information provided to the CRA can be used against the taxpayer.

The CRA allows “no-name” disclosure to enable discussions to take place anonymously until a deal is reached. Only then is the taxpayer required to provide his name. DioGuardi cautions that only a lawyer can protect the client’s identity if a deal is not reached. Even an accountant, or a friend, acting on behalf of the no-name taxpayer, can be subpoenaed to provide information, including the taxpayer’s name. Only a lawyer has solicitor-client privilege.

However, Morgan says that if the disclosure is voluntary and the taxpayer is completely honest and forthcoming, a deal will be struck, so there is nothing to worry about.

Most people in Canada are honest, Morgan said.

“The vast majority of taxpayers in Canada want to comply,” he said. “It’s just a matter of us providing them with the means and information they need.”

Taxpayers who aren’t sure what needs to be reported and what can validly be deducted can check out CRA’s website at www.cra-arc.gc.ca.

Those who want to seek amnesty can go to DioGuardi’s website at www.taxamnesty.ca.

© The Vancouver Sun 2006

History of Naming Vancouver Streets

Friday, March 3rd, 2006

Hamilton’s legacy

Lisa Smedman
Van. Courier

When surveyor Lauchlan Hamilton arrived in 1884, Vancouver was a tiny village, captured here in his painting. When he left four years later, it was a thriving city. (First in a monthly series on the names behind Vancouver streets.) Artwork L.A. Hamilton, City of Vancouver Archives documentary art 72-422-9

The mayor and alderman set up city hall in a tent after the great fire of 1886. Photo-Harry T. Divine courtesy City of Vancouver Archives LGN 1045

One hundred and twenty years ago, the man who would name most of the streets in downtown Vancouver stared at the street grid he’d just laid out and scratched his head, trying to come up with more names. He’d already named a number of the streets after B.C. politicians, Canadian Pacific Railway officials, and prominent businessmen like Vancouver Island coal baron Robert Dunsmuir. He’d also named two streets after Burrard Inlet’s original south-shore townships: Hastings and Granville. But with nearly two dozen more streets to name, he was running dry.

For inspiration, he broke out some Admiralty charts of the B.C. coast. Place names jumped out at him-names of islands, lakes, inlets, channels and straits. All became fodder for street names, albeit with a couple of misspellings.

To cap it off, he named one street after himself-the very first street he’d surveyed in 1885: Hamilton Street.

Lauchlan Alexander Hamilton only lived in Vancouver for four years, but he had a tremendous impact on the shaping of this city. Sent out by the CPR to survey the property the railway had been granted in return for relocating the terminus of its national line from Port Moody to Coal Harbour, Hamilton sat as an alderman on the first city council and helped create Stanley Park. An accomplished watercolour painter and photographer, he captured some of the earliest views of the city.

Continued from page 1

His years here were filled with tragedy, as well as triumph. He barely survived the fire that wiped out Vancouver in 1886, buried his first wife later that year, carried on as a single father, and nearly drowned in a canoe accident near Stanley Park.

By the time Hamilton was transferred by the CPR to Winnipeg in 1888, Vancouver had grown to a population of nearly 10,000. It had three-storey brick buildings, electric street lights, sewers in the business section of the city, and a local telephone system with 150 subscribers and a connection to New Westminster. The Capilano Water Works company was laying a cast-iron pipeline from the North Shore across First Narrows; the water was scheduled to be turned on in April 1889. Homes, businesses and shops were illuminated by either electric or gas light.

The city had a hospital, two schools, three banks and six churches, and the CPR had built an impressive hotel. The main industry was still lumber-Vancouver boasted six sawmills-but other industries were cropping up, including a foundry and lime mill.

All this was a far cry from the rough sawmill town, population 300, that Hamilton came to in 1884.

Hamilton, a third-generation Canadian, was born in Penetanguishene, Ontario on Sept. 20, 1852. After apprenticing as a surveyor, he took part in the survey that plotted the 49th parallel through the Prairies between 1872 and 1874, establishing the international boundary between Canada and the U.S.

When the Canadian Pacific Railway was incorporated in 1881, Hamilton became a CPR land commissioner. As the railway moved west across the country, Hamilton was one step ahead of it, surveying townsites along the route and plotting where their streets would go. Regina, Moose Jaw, Medicine Hat and Calgary were all his creations.

The CPR originally picked Port Moody as the terminal city for its cross-country railway. But in 1884, the CPR negotiated with the provincial government for land near Coal Harbour, in return for relocating the terminal there. This, it was hoped, would spur sales of government land near Burrard Inlet and False Creek.

In February 1885, it was officially announced that a spot just west of Granville Townsite would be the end of the line. The town to be created there would be named Vancouver-a name suggested by CPR president William Van Horne.

The CPR was granted a huge chunk of land-6,458 acres in total. On a modern map, this land grant would cover the eastern half of downtown-everything between Burrard and Carrall streets (excluding the original Granville Townsite). South of False Creek, the land given to the CPR stretched from Trafalgar Street in the west to Ontario Street in the east, and south from False Creek to about 57th Avenue.

Although settlers had been pre-empting land around Burrard Inlet since 1860, the first “town” didn’t spring up until 1870, when Granville Townsite was laid out. Today known as Gastown, it lay just west of Hastings Sawmill (which began operations in 1865 as Stamp’s Mill).

The town wasn’t much to look at. A map of the township published in August 1885 shows only four streets, each little more than a block long. The mapmakers gave these streets arbitrary names: Front (now Water Street), Willow (now Cordova Street), Water (now Carrall Street), Wood (now Abbott Street). The map shows three hotels-Sunnyside Hotel, Granville Hotel, and “Gassy Jack’s” Deighton Hotel-as well as a dozen smaller buildings including shops, a meat packing plant, boarding houses, cow barn, real estate office and Chinese wash house.

W.H. Gallagher, whose memories of early Vancouver were recorded in 1931, recalled what the settlement looked like in 1885. Granville, he said, was a rough clearing along the shore about two blocks long (between the modern streets of Cambie and Carrall). It was “boxed in by tall trees, damp, wet, the actual clearing littered with stumps and forest debris, and a profusion of undergrowth including luxuriant skunk cabbage. A great wall of trees stood along Hastings Street and faced the waterfront; two similar walls flanked the clearing [on the east and west]… All else was verdant woods.”

Several of the buildings were built on piles over the water. The streets were either dirt or wooden skid roads. European women were scarce, and saloons did a brisk business serving loggers. The Granville Hotel offered “eye opener” drinks with breakfast. A single drink cost 10 cents, but they were cheaper by the half-dozen-just 25 cents.

Hastings Mill, with 75 employees-“whites, Chinese and Indians”-produced an “incessant rattle of machinery and cloud of escaping steam,” according to the B.C. Directory of 1882-’83. From the Moodyville Sawmill, across the inlet in what would eventually become North Vancouver, came “the buzz of saws, the hum of innumerable drums and pulleys, and the noise of shifting lumber as it sweeps down the inclines through the ports of the different ships.”

Stage coaches connected Granville with New Westminster. Steam ferries offered service to Moodyville (North Vancouver) and Port Moody.

Hamilton began surveying the CPR’s townsite in the spring of 1885. According to a story published in 1953 by the Vancouver City Archives, he set out one day from the Sunnyside Hotel on Water Street accompanied by an eight-man survey team that included Hamilton’s brother-in-law, John Leask. Hamilton drove a stake into the earth “with a certain amount of ceremony” at what would one day be the corner of Hastings and Hamilton streets. Then he set out to impose straight lines on a logged-over forest.

Axemen chopped sight lines through the woods, and then it was the turn of the men with the surveying instruments. Under Hamilton’s supervision they worked with a transit (a device that looks like a telescope mounted on top of a large compass, supported by a tripod), rods, levels and the surveyor’s equivalent of the tape measure: a 66-foot-long chain.

That first day had its mishaps-Leask got lost in the woods and the crew spent the afternoon searching for him. But over the course of that year, Hamilton plotted out a street grid and surveyed lots, filling his field survey notebooks with notations like “cedar swamp,” “heavy fir” and “good timber.”

Then the heavy work of carving streets through the forest and clearing lots began.

As the CPR’s land commissioner for Vancouver, it was Hamilton’s job to hire the crews and oversee their work. Streets were supposed to be 66 feet wide-one chain-and crowned to allow for water runoff, but when Granville Street was first laid out it was simply rough graded to about 12 feet wide. There were stumps on either side where drainage ditches should have been. Eventually, Granville was surfaced with thick wooden planks. It was a “passable road,” even if it wasn’t pretty.

To clear the lots, crews felled and “limbed” trees by sawing off branches. The resulting stumps were blasted out. The logs themselves were fodder for the mills, but the rest of the slash was burned where it had fallen.

The CPR began selling lots in its new township on May 5, 1886, just a month after Vancouver was formally incorporated. It would be a year before the first transcontinental train would arrive, but the properties sold briskly. The lots had cost $300 per acre to clear-well above the $15 to $20 per acre the CPR had expected to pay-but the profits were spectacular. The CPR made a bundle, and so did land speculators.

Donald Alexander Matheson was one of those hired to clear the CPR lands. He came to Vancouver in 1885 as a teenager. He convinced Hamilton to give him a job supervising a work crew.

“L.A. Hamilton was a regular father to me,” recalled Matheson in 1940. He would say to me, ‘Dan, you had better buy some property,’ and he would tell me where to buy; where were the best lots.”

Hamilton‘s advice: purchase a property, make the first payment, wait 12 to 15 months, then sell. Matheson did, selling one lot he’d purchased for $1,000 for twice the price just a year later. This, at a time when the average daily wage for labourers was $1.25 to $1.50 per day.

By the summer of 1886, Vancouver was a city of several hundred buildings. More were going up every day. But then, one Sunday in June, disaster struck. In a single afternoon, the entire city burned.

That summer, Hamilton was working out of the CPR office at the corner of Carrall and Abbott streets that had been erected about six months previously. When he heard that a fire had gotten away from a land-clearing crew and was racing east towards the town, he ran to his office to collect as many documents as he could.

Hamilton‘s brother-in-law, W.E. Bodington, related the story: “Suddenly he discovered he was in the midst of the fire. He put the sheaf of papers under his arm and ran into the street, into a very cauldron of fire. He rushed down the street [probably Alexander Street] telling the man with him to follow him closely. Breathing air as hot as cinders they got safely to the Sunnyside [Hotel] and got out on the water.”

Looking down, Hamilton found the papers he’d worked so hard to rescue had been charred by the fire and were ruined. He also lost a number of the photographs he’d taken, which were destroyed along with the CPR office.

Another story has Hamilton running from the fire with his survey instruments under his arms, only to look down later and find that the glass in those instruments had been cracked by the heat of the fire.

The next day, the settlers began building their city again.

Hamilton, by then a city alderman, chaired the committee that coordinated relief for victims of the fire. Later, he was credited with painting the words “city hall” on a board that was nailed up over a tent where the city’s mayor and aldermen met after the fire. A photo, purportedly taken just days after the fire but actually staged months afterward, shows Hamilton seated at a makeshift council table outside the tent.

One of the first projects Hamilton tackled as an alderman was to negotiate with the federal government for a government naval reserve to be turned into a city park-today’s Stanley Park. Hamilton surveyed the first road around the park and oversaw its construction.

During one of his inspection trips of this work, Hamilton and one of his engineers suffered a near-fatal mishap.

“[We] nearly drowned by having our canoe upset in the Narrows in a tide rip,” Hamilton later wrote in a letter to the city archives. “We both had a hard struggle to get the canoe ashore. Then, in our wet clothes on a bitterly cold evening, [we] paddled all the way back to the Granville wharf.”

Hamilton went on to serve a second one-year term as alderman in 1887. During the city’s second election, he received more votes than any other alderman.

Hamilton never lived on the street that he gave his name to. When he left Vancouver in 1888, Hamilton Street was still being cleared, and only had a handful of buildings. Residential lots, back then, were selling for anywhere from $200 to $2,000.

When the 1890 R.T. Williams City Directory was published, Hamilton Street was only four blocks long. It ended at Robson, where the bush began. Entirely residential aside from First Baptist Church on the southeast corner of Hamilton and Dunsmuir, it still contained a number of vacant lots.

Those who had built homes on Hamilton Street by 1890 included a cross section of Vancouverites. John McLagan, publisher of the Vancouver Daily World newspaper, lived in the 300 block. So did Charles Carter, owner of Carter’s Temple of Music. Others who’d built homes on Hamilton included two carpenters, two tailors, an accountant, a dry goods store owner, a grocer, a CPR mail clerk, a real estate agent, a butcher, a ship builder, a shingle mill employee and a “cigar agent.”

By 1895, Hamilton Street had been pushed through to Smithe. By 1900, to Nelson. The first institutional buildings started to appear. Central School, an eight-room red-brick building across the street from what is Victory Square today, was built in 1889.

Commercial buildings included the three-storey Inns of Court at Hastings Street, which by 1905 provided office space for realtors, barristers, bookkeepers, architects, dentists, contractors, financial brokers, the consul from Ecuador and the American Mandolin School and Novelty Company.

By the 1910s, the northern end of Hamilton Street was solidly commercial, lined with stores, wholesalers and apartments offering furnished rooms. To the south, Hamilton was pushed through to Davie Street, where the warehouse district became entrenched. Wholesalers, importers, factories, storage companies, grocers and a foundry were in place there by 1915.

A drive down Hamilton Street from south to north today offers a trip back in time. From Drake to Nelson streets, modern condos, cafes, hair salons and urban-chic decor outlets have taken root in the renovated brick shells of former warehouses. Shops cater to the tastes of the urban elite who slurp oysters and smoke cigars-pleasures that were also popular in Hamilton’s day.

At Nelson, the street becomes a construction zone where three unfinished cement-and-glass apartment towers-two of them already more than 30 storeys tall-block the view. Just one block north are four single-family homes, the sole survivors of the types of houses that used to line Hamilton. Three are original Queen Anne style homes, built in 1893. The fourth is an exact replica of a house that was built in 1895.

A host of institutional buildings fill the blocks that follow: the main post office and Queen Elizabeth Theatre, both built in the late 1950s; the CBC building, opened in 1976; and the Central Branch of the Vancouver Public Library, opened in 1995.

The old stone building at 505 Hamilton, on the southwest corner of Pender and Hamilton, dates to 1906. It originally was home to the International Order of Oddfellows Hall.

Victory Square, the site of Vancouver’s first courthouse, was created in 1924 when the cenotaph was unveiled.

The most northern block of Hamilton, the 400-block, is paved in cobblestones that were probably installed between 1907 and 1912. The curbs are granite-used because it could resist scuffing by iron-banded wagon wheels.

Hamilton ends at Hastings Street, at the 13-storey Dominion Building with its rounded roof and solid red columns, built in 1910. Next door are the Amsterdam Cafe and Marijuana Party book store.

In addition to laying out the streets of downtown Vancouver, Hamilton surveyed the CPR property south of False Creek. He liked to camp there; photos taken in 1886 show him canoeing and tenting on False Creek with his first wife, Isabella (whose name is also recorded as Isobel and Isabel) and their daughter Isobel, then about five years old. Their campsite was near the current location of Granville Street and Sixth Avenue. Hamilton named the area Fairview after the view his campsite offered of False Creek.

Hamilton had only three weeks to survey the area; he worked, he later recalled, “night and day” to get the job done. Decades later, in 1936, Hamilton wrote to Vancouver archivist Major J.S. Matthews about the inspiration for the street names in that area.

“I had a free hand in the property lying south of False Creek, so there I was able to adopt the modern system of naming the avenues First, Second, Third, etc., and the streets I called after trees…”

Hamilton had intended the tree-named streets to be arranged alphabetically, but a draftsman’s error resulted in the existing configuration being registered at the Land Registry.

According to one story, Hamilton got the idea to name streets after trees from an existing street name. Heather Street was named by Scotsman William Mackie, who had pre-empted land in the area.

Around the time Hamilton was laying out Fairview, his first wife died.

A death certificate was filed in New Westminster for Isabella Easton Hamilton, who died on Nov. 13, 1886 at the age of 27 from tuberculosis. It is unclear whether this is L.A. Hamilton’s wife, since the signature of the next of kin who confirmed identity of the body is illegible.

Hamilton remarried two years later. His second wife was Constance Bodington, who had been born in England and who came with her parents to Vancouver in 1887. Her father, George Bodington, was said to have been Vancouver’s first doctor.

The marriage was held on April 10, 1888 at St. James Church. Harry Abbott, superintendent of the CPR, loaned the couple his private railway coach for their honeymoon trip to Harrison Hot Springs.

Shortly afterward, Hamilton was transferred by the CPR to Winnipeg to replace that city’s land commissioner, who had died.

Hamilton and his family lived in that city for 13 years before he retired and moved to Ontario.

Although Hamilton was gone from Vancouver, he wasn’t forgotten. In 1938, Vancouver’s council honoured Hamilton by granting him the freedom of the city. Hamilton was too sick to travel to Vancouver to collect the honour, which had to be bestowed at his winter residence in Florida. In his thank you speech, he recalled Vancouver as being “an insignificant village on the sea shore” when he first set eyes on it.

Hamilton died on Feb. 11, 1941 in Toronto at the age of 88. More than a decade later, Vancouver was still paying him tribute. In 1953, his daughter Isobel-Hamilton’s only child, who never married-came to the city to unveil a plaque in her father’s memory.

The memorial can still be seen on the old Bank of Commerce building-now vacant-on the southwest corner of Hastings and Hamilton streets. Although green with verdigris, its inscription is still sharp.

It reads: “Here stood Hamilton, first land commissioner, Canadian Pacific Railway, 1885. In the silent solitude of the primeval forest he drove a wooden stake in the earth and commenced to measure an empty land into the streets of Vancouver.”

Pirate wants Intrawest sold

Friday, March 3rd, 2006

Bruce Constantineau
Sun

Intrawest Corp.’s largest shareholder has urged the Vancouver resort developer to sell itself outright to the highest bidder, claiming company shares are worth at least $45 US each — 35 per cent more than the current market price.

“We believe that there are numerous potential bidders who may be willing to acquire Intrawest in a valuation range reflecting a substantial premium to the current market price . . . ,” Pirate Capital LLC representative Stephanie Tran wrote in a letter to the Intrawest board this week. “We urge you to fulfill your fiduciary duties to all shareholders by immediately initiating a sale of the entire company.”

The call for a sale of North America’s largest resort developer comes after Intrawest announced this week it is exploring mergers, partnerships or other “business combinations” to enhance shareholder value and fund future global growth.

Intrawest said an outright sale of the company is just one of several options being considered and a company representative insisted Thursday it won’t be rushed into any decision.

“While we appreciate and listen to the input of all shareholders, the letter from Pirate Capital LLC changes nothing about the broad strategic review that our board has initiated and that we announced earlier this week,” Intrawest spokesman Dan Gagnier said in a prepared statement. “Our board is fully aware of its fiduciary responsibilities and will continue to evaluate all options for creating and delivering value to all of our shareholders.”

Pirate Capital, a hedge fund based in Norwalk, Conn., owns about 12 per cent of Intrawest — paying approximately $135.5 million US for 5,786,900 Intrawest shares over the past 18 months, which works out to $23.41 US a share.

Intrawest shares have increased by more than 14 per cent this week since the company announced its strategic review and based upon Thursday’s closing price of $33.55 US, Pirate Capital already has a paper profit of $58.7 million US.

According to a U.S. regulatory filing Thursday, Pirate Capital bought 364,700 Intrawest shares between Feb. 16 and Feb. 27 this year at prices ranging from $27.54 US a share to $29.10 US a share.

Pirate Capital’s letter to the Intrawest board said the company’s real estate holdings have been undervalued by the public.

“The public market continues to discount the value of your land holdings while you sell them piecemeal at two to three times book value,” the letter states.

Intrawest has interests in 10 North American mountain resorts, including Whistler/Blackcomb, and operates Sandestin golf resort in Florida. It also has joint-venture village development projects in Europe and holds a majority interest in luxury adventure travel company Abercrombie & Kent.

Veritas Investment Research Corp. analyst Anthony Scilipoti said the current share price for Intrawest already represents fair market value for the company’s land holdings.

“Outside of Whistler, the other resorts are of much lower value,” he said in an interview.

Pacific International Securities analyst Sheila Broughton said the $45 US value of Intrawest shares assumed by Pirate Capital appears high, given what analysts currently know about company assets and future plans.

“The events of the past three days have really raised more questions than they have provided answers to,” she said.

© The Vancouver Sun 2006

Home sales volume takes a drop

Friday, March 3rd, 2006

Condos in Greater Vancouver take the biggest hit as rising prices become unaffordable for more buyers

Derrick Penner
Sun

Greater Vancouver’s high-flying real estate market saw a 4.1-per-cent decline in sales volume in February compared with the same month a year ago, the first year-over-year decline since last March.

Market analyst Cameron Muir with Canada Mortgage and Housing Corp. said a single month’s results don’t form a trend, but a drop is in keeping with his forecast that the region will see fewer sales as rising prices become unaffordable for more buyers.

The Real Estate Board of Greater Vancouver on Thursday reported 2,941 Multiple-Listing-Service-recorded sales in February, compared with 3,068 a year ago. The average price for all properties hit $490,000.

“By the time we get to the end of [2006], we’ll see affordability measures rise to a point that a lot of the impact that low mortgage rates has had will be supplanted by higher prices,” Muir said.

Although interest rates have been low, which allowed new buyers to get into the market with relatively low mortgage payments, Muir said prices are “starting to climb to the point that it’s going to begin to impact some consumers’ ability to purchase a home.”

Muir added that while sales are still strong, he does not expect that they will eclipse 2005’s record number of transactions across the region.

“The economy is in the midst of an upswing, and a strong economy typically supports robust housing,” he said.

In Greater Vancouver, condominium sales showed the biggest drop, falling 8.7 per cent to 1,212 units compared with last February. Sales of single-family homes declined 3.2 per cent to 1,177 compared with February of 2005.

Georges Pahud, president of Greater Vancouver’s real estate board, said “any [results] that are a little bit down but close [to last year are] not surprising,” following the record 2005.

“Nothing has changed in the economy that makes the market what it is,” Pahud added.

However, the Fraser Valley Real Estate Board saw a 14-per-cent increase in MLS sales to 1,464 during February compared with the same month a year ago, which also may have a lot to do with affordability.

David Rishel, the board’s new president, said the biggest sales gains were in condominiums and townhomes, which increased 50 per cent and 20 per cent, respectively compared with last February.

“It may be pointing to the affordability issue,” Rishel said. “Abbotsford is increasingly a fundamental part of our market. People are looking that way and are finding affordable, nice communities to live in.”

Muir agreed it is likely that “many young buyers are headed to the valley in order to find an affordable home to buy.”

Muir added that in strong market cycles, prices tend to get bid up in urban core areas, causing “a ripple effect into suburban markets. That’s what we’re experiencing today.”