Quote:
Originally Posted by Flash Walken
Boy, Zarley, the WV having "negative value" is a real whopper.
I couldn't get by that statement. If you are using that as the foundation for an argument I don't know how you could possibly come to an accurate conclusion on the viability if the project.
If the land was so worthless why do the flames want it? More altruism from Calgary's London's famous citizen Murray Edwards.
|
Well, you are completely wrong. If the City were to put its WV holdings on the market as-is, no investor would buy these lands. Nobody is going to assume a remediation liability of this magnitude, period.
In order to move the lands, the City would have to agree to foot the cost of remediation. Essentially, they would have to pay someone to take the property at its market value.
Even if the contamination was dealt with, the current zoning and configuration of the area would limit interest. Access from Bow Trail is restricted and the allowable uses are limited to automotive on a 12 acre portion of the site.
Here's another way to look at it:
-Market value of WV holdings without environmental liability: $60-75 million (based on market rates for large inner city C-COR and urban reserve land transactions)
-WV remediation cost: $85-140 million (city estimate)
Is that not the definition of negative value?