The City of Surrey is rejecting accusations that it wasted taxpayer money in two recent land acquisitions, defending the deals as beneficial for the city's future. The controversy centers on a land swap with Wesgroup Properties and another undisclosed purchase, with critics arguing the city overpaid by millions.
Land Swap Under Fire
The city exchanged three city-owned sites—two industrial properties in Campbell Heights and a shopping centre in Cedar Hills—for a former Safeway store and parking lot at 10355 King George Blvd. The site is slated for a 10,000-seat arena, part of a planned entertainment hub with a hotel, conference space, and housing.
Opposition Coun. Linda Annis, who voted against the deal, claims the city effectively paid $114 million in land for a site assessed at $86.8 million. “The mayor brushed off questions and said it was a simple land swap, but when you look at the assessed value of the city property and the value of the Wesgroup Properties site, taxpayers got the short end of the stick and ended up paying $28 million more than the assessed value of the arena site,” Annis said in a news release.
City Defends Deal
Bill Aujla, CEO of Surrey City Development Corporation, dismissed the criticism, stating that land transactions are based on appraisals, not assessed values. “Land transactions aren’t done on assessed values. Land transactions are typically done on appraisals. … I think we did make sure we had a fair deal for both sides,” Aujla said.
The city provided a report by EY-Parthenon Corporate Finance Inc., which concluded the deal “within a reasonable range of the appraised values or broker opinion of values, which suggests that the city is achieving market values for the properties.” The report valued the future arena site at $116.6 million, matching the combined value of the traded lands. It also noted Wesgroup was not actively selling the former Safeway property and had a four-tower project underway, making a discounted price unlikely.
Strategic Location
Aujla emphasized the site’s advantages over the previously considered B.C. Lions training facility at Tom Binnie Park. The new location is across from City Hall and Surrey Central SkyTrain Station, with existing underground parking and planned bus rapid transit along King George Boulevard. “It’s not just about the fight as of today, it’s what you’re creating for the future economic development, the jobs, the success of the entertainment district,” Aujla said.
The city maintains the acquisitions are strategic investments to stimulate economic growth and create a central entertainment hub, despite ongoing scrutiny from critics.
