Renewal Land Company Financial Information: October 2004
Renewal Land Company (RLC) operates on a cost-recovery, not-for-profit basis. Our goal is to conserve forest ecosystems and biodiversity, while also ensuring community benefits such as public access. Click here to read more about RLCês goals and what we are proposing.
RLC is committed to making sure that this project reflects the Cortes communityês vision to the greatest extent possible, and to involving the community in the design and implementation of our project.
The following general financial information has been provided to help with understanding the costs associated with this project. Many of the costs can only be estimated at this stage, as we are still only partway through the project as of this date. We hope to do periodic updates as the project evolves.
RLC will take no profits from this project. Should there be any revenue left over after all expenses needed to complete the land sales, it will be expended for the benefit of the Cortes community.
Following is a summary of the estimated costs of the project and the anticipated revenue from land sales. All figures are approximate. More information is included below these charts.
RLC has purchased seven properties from Weyerhaeuser Corporation, totalling approximately 182 hectares (450 acres) of forestland. The total purchase price for all seven was $2.67 million dollars.
RLC also had to pay a 7% Goods and Services Tax, which applies to all bare land sales. The GST for all seven properties came to $186,900
WHAT KINDS OF DEVELOPMENT COSTS ARE INVOLVED WITH THIS PROJECT?
There are many costs associated with rezoning and subdivision. These include:
• Rezoning fees (application fees, creating maps etc.)
• Subdivision costs such as site design, land surveys and application fees.
• Engineering costs for things like hydrology assessments, road design and wastewater management strategies.
• Public trail costs such as mapping and trail surveys to allow trail donations for public access.
• Servicing costs such as wells, roads and driveways, septic and power. Experienced realtors and developers estimate that it can cost between $30,000 and $50,000 to provide these services to a single residential lot, depending on factors such as the location and topography.
• Conservation covenants, which include legal fees for designing and writing the covenants and payment of a one-time endowment to the conservancy organization to cover monitoring and administration costs in perpetuity.
WHAT ARE THE CARRYING AND COMPLETION COSTS FOR THE PROJECT?
• Interest payments on the mortgage and loans.
• Annual property tax and insurance.
• Legal costs associated with land purchases and sales.
• Real estate commissions.
• Website design and maintenance.
• Staff to manage the project and consultants to provide expertise where needed (such as engineers or hydrologists).
• Community consultation process (meetings, maps, etc.).
WHERE DOES RLC GET THE MONEY TO DO ALL THIS?
RLCês project is partially financed through a mortgage from VanCity Credit Union. We also received some financing in the form of loans from private lenders. The VanCity mortgage and private loans must be paid back, with interest, using funds generated from land sales.
HOW MUCH MONEY WILL RLC MAKE FROM THIS PROJECT?
RLC operates on a non-profit basis. We will take no profits from this project. Should there be any revenue left over after all expenses needed to complete the land sales it will be expended for the benefit of the Cortes community.