The Land Conservancy of B.C.’s effort to sell property was stalled in court this week although the group has won permission to start a formal reckoning of its debts.
TLC is in an unique position because it is a charitable organization that wants to sell properties, a contentious issue and one affected by B.C. legislation governing charities.
The Victoria-based Land Conservancy has been in creditor protection since fall 2013. It holds about 50 properties throughout B.C., with an estimated value of approximately $44 million, and owes creditors about $7.5 million. Any sales or land transfers require approval from a B.C. Supreme Court judge.
Legal submissions and court decisions are helping to clarify the situation, John Shields, operations manager, said Wednesday.
“We are the first charity to go through this process, certainly in B.C. There’s no precedent that people can point to for a non-profit charity,” he said.
TLC had asked the court’s permission to sell the historic 27.5-acre Keating Farm in the Cowichan Valley for the listing price of $749,000 to a couple whose names have not been released. But another potential buyer spoke up in court on Tuesday and has been given time to prepare a bid for the property. Objections to the sale were also raised in court.
The Land Conservancy is returning to court on Friday, when Shields expects the sale of the farm to be addressed.
The sale of a Foul Bay Road lot next to Abkhazi Garden in Victoria has not been dealt with in court yet. An offer at the listing price of $539,000 has been presented for that property.
Plans to sell assets have faced resistance from property advocates opposed to private buyers. Properties were bought by the TLC for heritage or ecological values.
TLC is also trying to get a handle on its mounting bills, Shields said. The cost of obtaining protection from creditors last fall and working with a court-appointed monitor and lawyers has already added up to $800,000, Shields said, and some lenders, who provided interim financing, are getting concerned.
Shields headed to Vancouver Wednesday to meet with TLC lawyers to try to figure out a way to hold costs down.
TLC is embarking on a process to clarify its position with creditors to learn what monies are owed in the short and long term.
After it went into creditor protection last fall, The Land Conservancy’s plan was to sell some lands as part of its restructuring so that it can then continue on a solid financial footing.
The organization has always believed that it is in a position to carry some long-term debt through mortgages, many held by individuals, Shields said.
