There has been some buyer’s remorse at the Global Transportation Hub. Some companies have either delayed or cancelled construction projects. One company has sold its property back to the government for more than it paid.
Every land deal at the global transportation hub comes with a buy back option.
"It's in the contract that the Global Transportation Hub can purchase the land back," said Dustin Duncan, Minister in Charge with the Global Transportation Hub.
Yanke Transport purchased property for a truck terminal in 2011 but the project was cancelled after the company changed hands. It had paid $1.6 million and sold the land back to the government for $1.8 million. The government says there's a reason for the higher refund.
"They did so and they essentially purchased the land back but they also purchased the improvements so there was geotechnical improvements,” said Duncan. “There was some land improvements that were done so the difference between what they sold the land for and what they purchased it back from Janke, the higher amount was basically because they purchased not just the land but they purchased the improvements as well."
The government has also been paying higher prices to landowners who lost their property to expropriation at the GTH. It cost the government $13 million to expropriate land from a half dozen owners. It has since settled out of court for $11 million more.
"The reasoning, in fact the minister of justice said yesterday the reasons for expropriating were sound so then why are they settling the lawsuits," said Cathy Sproule, NDP MLA.
The government told CTV that there is a cost and a risk in going to trial and that settling out of court is often the best route.
