How much is a private island in Howe Sound worth? B.C. assessment appeal board weighs in
The corporate owner of a private island near Vancouver has successfully appealed the assessed value of the property.
North Growth Management, Ltd., appealed the 2021 assessment of Popham Island, a roughly 45-acre island in the mouth of Howe Sound, located approximately five kilometres south of Gibsons, B.C., on the Sunshine Coast, and 20 kilometres from Horseshoe Bay in West Vancouver.
The island was assessed at $4,464,000 in 2021, but the company argued before the Property Assessment Appeal Board that this figure was more than double the island's actual value.
PAAB panel chair Allan Beatty did not accept the company's proposed $2,134,000 assessment for the island, but he did reduce the assessed value in his decision on the case, which was issued last week.
According to Beatty's decision, North Growth reached its estimate for the value of the property by looking at seven sales of private islands in B.C. dating back to January 2014.
The company used these sale values to estimate a price-per-acre for each one, then selected an actual value of about $51,000 per acre for its property.
"It is not clear in the appellant’s submission how this figure was calculated," Beatty wrote in his decision.
The board chair noted that the company neglected to make any adjustments to the sale prices of the comparable properties it had identified, arguing that such adjustments were not necessary.
"According to the appellant, the moderation in overall prices paid for larger private islands is due in part to the increased cost associated with owning this type of property, including costs for building materials, rising fuel prices and costs associated with water access," Beatty wrote.
"More recently, the appellant says that the introduction of the vacancy tax and additional school tax on high-value properties also contributes to a generally lower demand and stable to declining prices for private island property."
For its part, the assessor for Area 8 – Vancouver Sea to Sky Region argued that adjustments to the prices of comparable sales were necessary.
After accounting for time since the most recent sale and various other factors related to comparable islands' locations and characteristics, the assessor concluded that the actual value of Popham Island should be in the vicinity of $120,000 per acre.
Beatty was also unsatisfied with the assessor's calculations. While he concluded that a time adjustment was necessary, he determined that the assessor's was too high.
The board chair found all of the parties' other arguments to be lacking substantive data.
"Both parties rely on qualitative approaches to reconcile the data except for the time adjustment, which I have already ruled on," Beatty wrote.
"I find it notable that both parties are critical of each other but do not provide me with market-supported evidence or analysis to choose one party’s evidence over the other."
Ultimately, based on his own calculation of the appropriate time adjustment for comparable sales, Beatty settled on a price-per-acre of $80,000, resulting in a revised assessment of $3.6 million for the island.
CTVNews.ca Top Stories
Three dead, two hospitalized, following collision in Fredericton: police
Three people have died and two have been hospitalized after a speeding car struck a tree and landed on another vehicle in Fredericton Sunday morning.
Nylander defends Leafs' core after playoff exit, Toronto again picks up the pieces
The Maple Leafs battled back from a 3-1 series deficit against the Boston Bruins with consecutive 2-1 victories - including one that required extra time - in their first-round playoff series to push the club's Original Six rival to the limit before suffering a devastating Game 7 overtime loss.
Amid climate change warnings, Canadians lukewarm on electric vehicles
Amid scientists' warnings that nations need to transition away from fossil fuels to limit climate change, Canadians are still lukewarm on electric vehicles, according to a study conducted by Nanos Research for CTV News.
Montreal man on the hook for thousands of dollars after a feature on his Tesla caused an accident
A Montreal man is warning Tesla drivers about using the Smart Summon feature after his vehicle hit another in a parking lot.
Madonna's biggest-ever concert transforms Rio's Copacabana beach into a massive dance floor
Madonna put on a free concert on Copacabana beach Saturday night, turning Rio de Janeiro's vast stretch of sand into an enormous dance floor teeming with a multitude of her fans.
Mexican authorities say thieves killed 2 Australians and an American to steal their truck
Thieves killed two Australians and an American on a surfing trip to Mexico in order to steal their truck, particularly because they wanted the tires, authorities said Sunday.
1 person killed and 23 injured in a bus crash in northern Maryland, police say
One person was killed and 23 others were injured when a bus crashed early Sunday on Interstate 95 in northern Maryland, police said.
El Nino weakening doesn't mean cooler temperatures this summer, forecasters say
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
‘Love has no boundaries’: Sask. couple in their 90s and 80s get married
Eighty-two-year-old Susan Neufeldt and 90-year-old Ulrich Richter are no spring chickens, but their love blossomed over the weekend with their wedding at Pine View Manor just outside of Rosthern.