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Land Conservancy hits cash roadblock

The Land Conservancy is facing another setback after learning an anticipated $450,000 bequest can’t be used to cover immediate costs as expected.

The Land Conservancy is facing another setback after learning an anticipated $450,000 bequest can’t be used to cover immediate costs as expected.

The money represented 45 per cent of expected cash flow through to late January for the non-profit Victoria-based society, which is in court-ordered protection from creditors.

TLC had expected the $450,000 bequest, with no strings attached, by mid-November.

But it now turns out that the money may not come in for several months and that its use is restricted, Wolrige Mahon, the court-appointed monitor said in the latest report filed in the Supreme Court of British Columbia.

When the money does arrive, its use is limited to buying land for habitation preservation. That means it can’t go toward paying off any of the $7.5 million owed to TLC creditors. The monitor described it as a “material and adverse change.”

TLC went into protection from creditors this fall. That protection runs until Jan. 20, 2014.

Scaling back the cash-flow projection means the monitor, its lawyers and TLC lawyers are not being paid at this time. They are owed about $436,000, the report said.

The monitor has therefore applied to the court to increase the administration charge to $1 million from $500,000.

John Shields, TLC manager, said in an interview Wednesday that the organization is being frugal and that it has received other unexpected funds.

“To my great pleasure and everybody’s significant amazement is we are getting a lot of donations,” he said. “Both members and the public are donating quite generously to TLC.”

He did not have the total amount immediately available, but said some individual donations have been in the tens of thousands of dollars.

TLC management and the monitor are seeking to develop a business model that will see the organization pay off its creditors and allow it to survive in the long-term.

A critical issue for TLC and its properties comes up in Supreme Court on Dec. 11, when three days are set aside to hear arguments about whether the society can sell its Binning House in West Vancouver for $1.6 million. The Attorney General of B.C. is arguing the heritage house cannot be sold under legislation governing charitable properties. TLC disagrees.

TLC put two other properties on the market, one at Sechelt and another which has been used as a parking lot on Foul Bay Road, next to Abkhazi Garden.

The marketing of the Victoria property is on hold as TLC holds discussions with the city, Shields said. Opponents to the sale of that property say a large portion of it is used for composting to support Abkhazi Garden. As well, plants would have to be taken out and the view within the Garden would be affected.

An employment standards document said that TLC owed wages and interest totalling $378,143 to 39 past and former staff this year. Two payments totalling $30,718 were made,

The largest amount owed is $58,297 to Ian Fawcett, former TLC deputy executive director. Fawcett is secretary-treasurer of the National Trust for Land and Culture, which is chaired by Bill Turner, former TLC executive director.

Another former administrator, Kathleen Sheppard, who worked as manager of retail services, is owed $29,477.

Creditors include 11 local governments, including Saanich, Victoria, Sooke, the Highlands, and North Cowichan. Individuals, some of whom hold mortgages on properties, private companies, non-profit organizations and institutions such as credit unions are also on the list.