Vancouver’s Auditor General Mike Macdonell released a report on his audit of Land Sales and Exchanges.

As one of the largest landowners within its borders, the City of Vancouver has the authority to dispose of surplus land by selling, exchanging, leasing, or granting. These actions can support City goals such as revenue generation, urban development, and the creation of public amenities. Because of the high value of land in the Lower Mainland, these transactions are often of significant value.

The audit was undertaken after receiving a whistleblower complaint. Initial enquiries suggested there could be systematic issues that would be better addressed through a performance audit. The audit sought to determine if the City had maximized value in its sales and exchanges of land between 2016 and 2024. 

The audit found that although staff advised Council that prices of land being sold or exchanged reflected market value they did not routinely demonstrate this by providing all relevant information. For example, Council was not provided with land values appraised at both current and conditionally approved zoning or told when negotiated sale prices were below appraised values. As a result, we could not determine whether these properties were sold below market value.

The City’s practice of instructing appraisers to base valuations on existing zoning rather than conditionally approved rezoning, which would usually result in a higher appraised value, was aligned with the City’s Community Amenity Contribution (CAC) procedures. While the CAC process can capture some of the increased value from new zoning through cash or in-kind contributions, securing a higher sale price upfront offers more certainty. Council should be given the full range of pricing and CAC options when considering land sale transactions.

Council should also be informed of any material changes to transactions they have already approved. In two cases, Council was not advised when transaction closing dates were extended beyond 90 days as required by Council approved policy, nor was their approval sought when interest was not charged as required by policy. Existing City policy also lacked defined materiality thresholds that would require a transaction to return to Council for re‑approval.

In one transaction, Council was not advised of a staff calculation error that understated a deferred payment owed to the City by nearly $13 million. In the same transaction, the City also agreed to pay a $12.1 million community amenity contribution that was legally the buyer’s responsibility, a fact not disclosed to Council. 

Improving the control framework to guide land sales and exchanges to increase public transparency, close key gaps, improve documentation and ensure consistent practice would increase assurance to Council that the City maximized value from land sales and exchanges.

The audit also found that the City did not have a strategy for selling and exchanging land and did not proactively leverage its land portfolio to support its strategic objectives. Most transactions were initiated by potential buyers or arose from rezoning negotiations. Strengthening alignment with strategic goals, clarifying policy requirements, and

improving information provided to Council would also help the City better demonstrate value in future transactions.

The audit determined that the City did not demonstrate that it maximized value for its land sales and exchanges. The report includes ten recommendations to enhance the City’s ability to demonstrate that it maximizes value for its land sales and exchanges.

“We will never know what decisions Council may have reached had it been provided with more complete information; therefore, we cannot assert that money was left on the table – nor can we assert that it wasn’t,” Auditor General Mike Macdonell said.