Expropriation hearing delayed
Issue involves sale of unrelated waterfront properties
SYDNEY — The hearing to determine what the Cape Breton Regional Municipality will pay for the land it expropriated to construct the second cruise ship berth land has been adjourned without a new hearing date set.
Robert Grant from the law firm Stewart McKelvey, which is representing North Sydney businessman Jerry Nickerson, wrote to the Nova Scotia Utility and Review Board requesting an adjournment, this week.
At issue is the sale of lands related to the relocation of the Marconi Campus of the Nova Scotia Community College to downtown Sydney.
“The appraisers have all used the direct comparison approach to valuation and refer to some of the same properties as reference points in their opinions,” Grant wrote in his request. “Nevertheless there is a difference in opinion on the market value by over 100 (per cent) between the appraisal put forward on behalf of CBRM on the one hand and those put forward on behalf of our clients on the other hand. The appraisers are interpreting sales of a small number of comparable properties. Some of these sales were some time ago. In the past year there have been a number of purchases of property in the downtown or waterfront area of Sydney in connection with the announced establishment of the new Marconi Campus.”
They have asked that a prehearing conference take place in late March or early April.
The province’s Expropriation Act states that “the value of land expropriated shall be the value of that land at the time the expropriation documents are deposited at the office of the registrar of deeds.” The expropriation occurred in 2018.
The letter goes on to state that not all of the land sales related to the relocation of the NSCC campus have been completed. One sale was posted just before the holidays but the sale price was not disclosed. It also notes the Department of Transportation and Infrastructure Renewal which is handling the purchases on behalf of the province of Nova Scotia has advised that some of the transactions are still under negotiation — including one involving CBRM as vendor — and so it wishes to keep the prices confidential until the entire land acquisition is complete.
The expropriation hearing had been set for Feb. 4-7. The matter involves the CBRM and two numbered companies — 3060709 Nova Scotia Ltd. and 1588145 Nova Scotia Ltd. — both owned by Nickerson.
The hearing is to take place at the Nova Scotia Utility and Review Board offices at Summit Place in downtown Halifax.
The utility and review board will ultimately place a value on the land obtained by the CBRM.
According to evidence previously filed with the provincial regulator, the appraisal commissioned by the former owner of the property expropriated for the construction of a second cruise ship berth placed the value of the parcels at a total of $4.15-$4.24 million.
However, the appraisal prepared for the Cape Breton Regional Municipality by Ingram Varner and Associates only values the land at $1.53-$1.82 million.
The appraisal prepared by Turner Drake and Partners for Nickerson dated April 9, 2018, places the value at $4.15 million. The appraisal's summary noted that, to the appraiser's knowledge, the site wasn't actively marketed for sale in the three years prior to expropriation and no offers to purchase the land were received outside of negotiations with the
CBRM.
The Sept. 11, 2017, appraisal report prepared by Altus Group Ltd., also for Nickerson, places the value of the land at $4.24 million and estimated an “exposure time of six to 12 months to sell this property at its estimated market value.”
Both appraisal reports reference possible contamination of the lands due to their former industrial use, but added it is assumed that any contamination can be managed without extensive remediation. The CBRM has refused a request by the Cape Breton Post to release an environmental assessment of the land.
In all, six parcels make up the property being used in the construction project, which is located to the north of the existing cruise ship berth and was formerly the site of Sydney Engineering and Dry Dock. The title to one of the parcels in question is the subject of a dispute with the federal Crown.
The contract for construction of the second berth was awarded to Zutphen Contractors of Southwest Mabou for just over $19 million after the project was scaled back and re-tendered. It is being funded evenly by the CBRM, the province and federal government.
The expropriation has occurred and work on the project is underway. The municipality indicated this week that construction of the second cruise ship berth has been delayed by weather but is within budget and is expected to be completed by the spring.