Potential buyer found for Quest campus as new CRA audits raise more concerns about university's financial history

CTV News has learned a potential buyer has been found for the Quest University campus in Squamish.

The campus, owned by Primacorp Ventures, has been up for sale since February when the university announced it would be shutting down academic operations at the end of the term, citing ongoing financial difficulties. 

A few weeks later, the Realtor tasked with selling the site said there had already been “quite a bit of interest” in the property. 

A source close to the deal has now confirmed to CTV News that Capilano University is buying a portion of the land, with some being retained by Primacorp Ventures.

When asked about the sale, a spokesperson for Capilano University told CTV News in a statement: “We have no comment at this time. We hope to be able to share more information in the coming days.”

CRA AUDITS

Newly released audits by the Canada Revenue Agency are raising fresh questions about the financial history of Quest. In March, CTV News revealed that Quest is connected to a large network of charity foundations, all registered to the same downtown Vancouver office.

At the time, at least five foundations had had their charitable status revoked. In almost all cases of revocation, the CRA alleges there was a “failure to devote resources to charitable activities.”

As of July, 2023, two more charity foundations with connections to Quest have also had their charitable status revoked for the same reason. In one audit of the Eden Glen foundation, the CRA reveals a real estate transaction involving “Lot 12 and 58 in Squamish” (the previous legal title names for portions of land within the Quest University campus). The CRA alleges that sale resulted in a “private benefit” and does not “fulfill a charitable purpose.” As a result of that sale, and other financial dealings by the foundation, the CRA is proposing penalties of more than $23 million.

The CRA’s allegations regarding these foundations have not been tested in court.

ALUMNI CONCERNS

Members of the Quest University Alumni are renewing calls for an investigation into what went wrong with Quest. A letter sent to the province and the region's MLA calls for a “pause” in purchase plans for a minimum of 45 days until “new, important information, released just days ago by the Canada Revenue Agency, can be considered fully.”

Jake Henderson, a member of Quest Alumni, said he’s hoping answers can be found.

“I think it would be smart to just pause everything and really dive into stuff,” Henderson said. “We are asking that the government – provincial and federal governments – take a very hard look at what happened behind the scenes.”

Selina Robinson, B.C.'s minister of post-secondary education and future skills, was unavailable for an interview Wednesday, but a statement from her office said: “The ministry has received the letters from the Quest alumni. Questions about Quest University would be best directed to the institution.”