Did I read correctly that the bank requires the SODC to present a business plan to give them "some assurances that the SODC lands won't remain dormant" ["SODC to spend $1 million on experts," The Chief, March 27]?
Judging from the mess bankers worldwide have gotten themselves and the rest of us into, I wonder if they would recognize a sound business plans if they saw one.
Aside from that, I find SODC's justification for the expenditure very weak indeed. After all, the Oceanfront lands are not owned by some overextended developer but have the district behind it.
There are plenty of examples in the Lower Mainland and elsewhere in Canada of land parcels originally financed by banks as development properties, but which now, due to the adverse economic climate, have reverted back to becoming holding properties again.
I am not aware of any situation where a lender is leaning on a developer who has the financial strength to service the debt and hold out until things turn around, as they undoubtedly will.
Rather than hiding behind the bank, SODC should have given us the straight goods: that they wanted to spend money on a business plan now to be ready when that turn around comes. That would have given us the opportunity for an honest discussion as to whether now is really the right time to warrant such a large expenditure.
Wolfgang Wittenburg
Squamish
