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
Widow looking for answers after Quebec man dies in Texas Ironman competition
The widow of a Quebec man who died competing in an Ironman competition is looking for answers.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
World seeing near breakdown of international law amid wars in Gaza and Ukraine, Amnesty says
The world is seeing a near breakdown of international law amid flagrant rule-breaking in Gaza and Ukraine, multiplying armed conflicts, the rise of authoritarianism and huge rights violations in Sudan, Ethiopia and Myanmar, Amnesty International warned Wednesday as it published its annual report.
Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired
A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.
Amid concerns over 'collateral damage' Trudeau, Freeland defend capital gains tax change
Facing pushback from physicians and businesspeople over the coming increase to the capital gains inclusion rate, Prime Minister Justin Trudeau and his deputy Chrystia Freeland are standing by their plan to target Canada's highest earners.
U.S. Senate passes bill forcing TikTok's parent company to sell or face ban, sends to Biden for signature
The Senate passed legislation Tuesday that would force TikTok's China-based parent company to sell the social media platform under the threat of a ban, a contentious move by U.S. lawmakers that's expected to face legal challenges.
Wildfire southwest of Peace River spurs evacuation order
People living near a wildfire burning about 15 kilometres southwest of Peace River are being told to evacuate their homes.
U.S. Senate overwhelmingly passes aid for Ukraine, Israel and Taiwan with big bipartisan vote
The U.S. Senate has passed US$95 billion in war aid to Ukraine, Israel and Taiwan, sending the legislation to President Joe Biden after months of delays and contentious debate over how involved the United States should be in foreign wars.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.