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Vancouver’s Dunsmuir Hotel Site Sees Significant Assessment Value Increase
The Property Assessment Review Panel in British Columbia has confirmed a substantial rise—nearly three times the previous amount—in the assessed value for the Dunsmuir hotel site in Vancouver for 2025. This adjustment follows a rare third-party appeal initiated by a concerned citizen.
Planning and real estate consultant Michael Geller expressed a sense of satisfaction regarding the outcome, stating, “I do feel that there’s a little bit of justice.”
The property at 500 Dunsmuir Street is slated for new development by Holborn Properties, following the demolition of the former hotel and the subsequent single-room occupancy housing known as Dunsmuir House, which was dismantled in January.
The City of Vancouver had mandated the demolition of the 115-year-old structure last December due to its severe structural deterioration, which posed a risk of “catastrophic collapse.”
In searching for insights into the property’s valuation, Geller noted an inconsistency where the derelict building was appraised at a high value while the land itself was assessed relatively low. He felt compelled to ensure that Holborn contributes a fair share of taxes reflective of the actual value of the property.
“I decided it was not fair,” Geller remarked. “It seemed inappropriate that someone could allow a building to fall into disrepair to the point of requiring demolition and subsequently benefit from a reduction in property taxes.”
This appeal led to a substantial revision of the assessed value, increasing from $6,476,000 to $18,965,000—an astounding 193 percent rise. Geller mentioned, “The taxes will increase from around $70,000 to just over $200,000.”
Retired BC Assessment appraiser Derek Holloway corroborated Geller’s findings, stating, “That property (500 Dunsmuir) was dramatically under-assessed.” He emphasized that this situation of undervaluation is indicative of a broader issue impacting commercial properties across British Columbia.
“When these properties are misvalued and not adequately taxed, the financial burden shifts to other taxpayers within the jurisdiction,” Holloway pointed out.
In the past five years, taxpayers in Vancouver have seen property tax increases significantly outpace inflation, averaging seven percent annually, which compounds over time. Holloway affirmed that if larger properties were assessed more accurately, such tax increases may have been tempered.
Holloway criticized the current California Assessment Act, claiming it lacks the necessary enforcement mechanisms due to its wording, suggesting it could be easily corrected by amending a few provisions. “Sections 13 to 16 designate it as an offense to withhold requested information from BC Assessment,” he explained. “However, the absence of penalties means compliance is often neglected.”
A resolution from the Union of BC Municipalities for 2024 calls for provincial action to rectify the under-assessment of industrial, commercial, and investment properties, although earlier motions have reportedly faltered in committee.
Holborn Properties has until April 30 to contest the revised assessment for the Dunsmuir site. Although they did not provide a representative for comments, Holborn stated via email, “while we are evaluating next steps specific to the new assessment, we remain committed to transforming this underutilized block into a community-serving development.”
Source
globalnews.ca