The loss of three consultants who disagree with The Land Conservancy’s plans for its properties will make it tougher for the cash-strapped society to sell its holdings quickly, at the best price, and may also limit money available to creditors, the court-appointed monitor said in his latest report.
But TLC operations director John Shields called the matter a “tempest in a teacup” and said Tuesday that a blueprint is in place to move forward. “We actually think it is a positive outcome.
“This is not in any way a threat to the creditors,” he said.
Victoria-based TLC is in protection from creditors as it faces a debt of about $7.5 million and tries to map out a survival plan. It owns 50 properties with heritage and ecological values in B.C.
Deciding which properties to sell has ignited controversy and sparked complex legal proceedings and public debate. Each property is unique and many have various covenants attached and, in some cases, societies involved in their protection and preservation. Sales and land transfers need court approval.
Monitor Gord McMorran, of Wolrige Mahon Ltd., based his report on the loss of the consultants. He said that a “material adverse change has occurred, which negatively affects TLC’s financial circumstance, as well as expected future cash flow.”
It is not clear from the consultants’ letters of resignation exactly how they diverge from the TLC. They could not be reached.
CEL Services Group’s Jeff Ayre, of West Vancouver, worked for TLC since June 2013 as the restructuring consultant. TLC sent Ayre a letter May 5 ending his contract, saying it could no longer afford his services. Ayre sent a May 6 resignation letter to TLC, saying he and the TLC “are no longer able to agree on the proper objectives and strategy” on how to dispose of TLC’s properties.
Real estate consultants Simon Joslin and Ian Atherton, both of Victoria, worked for the TLC since last year to assess properties and examine ways to dispose or transfer ownership of some of its holdings. They quit on May 8.
The “clear divergence between the consultants’ recommended approach to disposition of properties and the approach being advocated by the TLC board and its director of operations has become a serious impediment to effective provision of services,” Joslin and Atherton said in their letter.
The three consultants worked together on what was called the property group, along with a TLC staffer, to craft a plan to dispose of a number of properties.
Shields did not want to publicly discuss all areas of disagreement with Ayre, but noted there was a difference of opinion on the best way to handle a potential sale of one unidentified holding.
The property review process is well developed and the strategy has been laid out, Shields said. TLC is now looking for real estate professionals to carry out the plan, replacing the property consultants.
TLC expects to be in court Wednesday to seek judicial approval of an offer for a development site in Sechelt that it has had on the market. Shields would not release the value of the offer.
TLC’s 1912 Joy Kogawa house in Vancouver will likely go to the existing society dedicated to preserving the bungalow, using a new legacy fund, he said. cjwilson@timescolonist.com
