The NDP on Federal Bldg. sale and leasing

Here is another article on the Federal Bldgs. sale in which Peggy Nash of the NDP points out some of the pitfalls of the project. The article itself explains some of the reasoning for the sale. Of course the government reaps in a lot of money but then the companies involved take in much more over the terms of the contract and no doubt at the end the property will probably be even more valuable.

FEDERAL PROPERTY

Sale of government buildings heads to cabinet committee
DANIEL LEBLANC

July 30, 2007

OTTAWA -- The Harper cabinet will decide today whether to move ahead with the sale of nine federal government buildings worth about $1.4-billion.

Sources said that after a four-month bidding process, Public Works Minister Michael Fortier is ready to bring proposals for the buildings to cabinet's operations committee today.

If Mr. Fortier convinces the operations committee to go ahead, the proposals will face a final hurdle at the cabinet committee on planning and priorities, chaired by Prime Minister Stephen Harper.

Mr. Fortier is apparently happy with the proposals for the prime buildings, in Vancouver, Edmonton, Calgary, Toronto, Ottawa and Montreal.

"If we don't have a good deal, we won't do it, that's for sure," he said last March when he announced the sale.

Government and industry sources said Ottawa stands to reap a significant amount of money from the sales, because the commercial real-estate market is hot in those cities. "The stars are aligned," one official said of the planned sale.

Critics, however, have blasted the plan, focusing on the fact the Conservative government is promising to lease the buildings from the new owners for up to 25 years.

"It may look good on the books, in the short term, that there is a big sale price. The question is whether this is in the long-term interest of Canadians, because we're going to be on the hook for these lease arrangements," Toronto-area New Democrat MP Peggy Nash has said. "Would any of us sell our house and lease it back for 25 years?"

The government has countered that the sales will be beneficial for taxpayers, and has hired the Deutsche Bank to provide independent advice on the financial wisdom of the plan.