Government spending questioned as SRO still open while businesses are closing

There are concerns being raised about government spending in B.C. in connection with some struggling businesses and an almost empty SRO hotel.

The Broadway Subway Project has already caused business owners in the area to express frustration with long delays and declining revenue.

Now, SportCheck has announced it is about to close its Mount Pleasant location and small family businesses dealing with reduced foot traffic are having a difficult time making ends meet.

The Business Improvement Association says it is a frustrating and common refrain.

“Because there is no compensation policy, they’re not doing anything here,” Neil Wyles, the executive director of the Mount Pleasant BIA, said.

“And policy is just that, it can be changed. Governments change policies all the time, but they have dug in on this one and they’re using it as a shield, an excuse to do nothing.”

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The B.C. government has said there will be no compensation for these merchants.

Housing Minister Christine Boyle is the local MLA and her office is across the street from the closing SportCheck.

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“These businesses are looking for a lifeline; they’re looking for some help; they’re not looking for handouts,” Wyles said.

He also questioned why Boyle is allowing her ministry to spend more than $100,000 a month to operate an SRO building on Granville Street with one resident, but has no money for taxpayers in her riding.

The Broadway Subway Project was originally slated to be finished in 2025, but will not be complete until 2027.

2:03 One tenant keeping SRO open

There are also questions about how much taxpayers paid for the Granville Strip SRO Hotel, which is still open a month and a half after the province promised to close it.

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BC Housing bought the former Howard Johnson Hotel, now known as the Luugat, in 2020 for $55 million. At the time, the combined assessed value of the building and an adjacent parking lot included in the deal was $38.6 million. Both sites are now assessed at approximately $27 million.

Urban planner and retired architect Michael Geller said governments often pay more than their properties are worth when they intend to create supportive housing.

“I don’t think it’s unreasonable to assume the province will lose about half of what they paid for this property,” he said.

“When I say the province is losing half, what I’m really saying is the taxpayers of British Columbia are losing half of what was spent on this building and that ignores all the other costs that have been associated with it over the years.”

Global News asked B.C.’s housing ministry why the Luugat purchase price was higher than its assessed value.

The government said that B.C. Housing received an independent appraisal before purchasing and ended up buying the site for less than the appraised value, which it did not disclose.