The Land Conservancy of B.C. has won court permission to sell the historic Keating Farm in the Cowichan Valley, making it the first property to be sold by the non-profit organization as it struggles to get out of debt.
But the sale disappoints Victoria’s Stuart Stark, one of the farm’s mortgage holders, who is concerned that TLC will continue selling heritage properties.
The 27.5-acre Keating Farm was bought by Rebecca and Georgios Papadopoulos for the asking price of $749,000. The buyers plan to restore the old farmhouse and work with tenant farmers so they can continue farming the land, the TLC said Monday.
Victoria-based TLC has been in creditor protection since fall 2013. A court-appointed monitor is working with the organization as it aims to reorganize and sell some of its 50 properties around B.C. TLC originally bought the properties for their ecological and heritage values.
Debts are believed to be about $7.5 million.
The monitor recently received court permission to launch a formal process to determine specific amounts owed.
The monitor said in a February report that, due to TLC downsizing in the 12 months prior to creditor protection, relocating offices, and staff turnover, “management acknowledges that it is not confident as to the accuracy and reliability of information contained in TLC’s books and records.”
Proposed sales of some TLC properties have faced criticism from advocates worried that they may not be preserved or would no longer be accessible to the public.
John Shields, TLC operations manager, welcomed the approval of the Keating farm sale. “It’s such an enormous relief, after all the struggling, to see one of the properties finally clear.”
TLC acting chairwoman Briony Penn said one of the farm’s creditors had raised concerns about a nursing colony of Townsend’s big-eared bats on the farm and had expressed interest in buying the property to protect the bats. Court heard that protection is in place for the bats, which will be monitored by the B.C. Ministry of Environment, and the sale was approved to the first bidders.
Proceeds from the Keating sale go first to secured creditors such as mortgage holders, then to other creditors, court documents state. Mortgages total $198,000 on the property, TLC said.
Stark and Margaret Graham Bell hold a mortgage of about $43,000, Stark said.
There seems to be a grey area about what constitutes a charitable donation, said Stark, who appeared in court last week to voice concerns about the sale of Keating.
Several years ago, a $46,000 donation was made to pay down the farm’s mortgage, which was done, he said.
He questioned whether the farm could legally be sold under B.C.’s Charitable Purposes Preservation Act, given the fact of the private donation to support the farm.
Stark is unhappy that the farm does not have an official heritage protection. The original farmhouse, one of several buildings, dates back to the 1880s.
TLC purchased Keating Farm for $680,000 in 2005. The 2014 assessed value is $321,511. It is classified for farm use and the land is within the Agricultural Land Reserve.
Blair Herbert, president of the Vancouver Island Real Estate Board, said the sale price reflects good value. Values for farmland vary, depending on factors such as the condition of any buildings on the property.
Values today are similar to 2005 and 2006, Herbert said.
