Gerry Bellett
Sun
VANCOUVER – Homeowners of 118 properties in False Creek will face rent increases of more than 700 per cent following changes in their 60-year land lease agreement with the city of Vancouver.
The city has decided to raise the rent for seven apartment complexes that were built in 1976, bringing in a total of $110,643 in revenue a month.
Previously, the city was receiving $7,095 a month.
A total of 435 units were developed in 1976 and buyers were given the choice of prepaying the entire land lease or paying monthly rent.
The agreement stipulated that owners not choosing the pre-paid option would have their land rent reassessed after 30 years, then again in 10-year intervals until the lease expires in 2036.
“These properties are held under a leasehold interest as opposed to freehold and the 30-year term has expired. Fifty-five other leases in False Creek will be coming up for renewal in 2010 and 2012,” said Michael Flanigan, the city’s director of real estate services.
The largest increase is for a unit in Leg in Boot Square, which had yielded $121.50 a month in rent. That is now being increased to $2,027.
The cheapest was for a unit in Scantlings that paid $70.27 a month for the last 30 years and has been raised to $528.76.
The new payments will come into effect in six months.
© The Vancouver Sun 2006
