The District of West Vancouver has made a formal offer to purchase the historic B.C. Binning House from the near-bankrupt The Land Conservancy of B.C — for $1.
However, the "one" in the district's offer is going to need a few zeros after it in order to get the blessing of the non-profit's creditors who are still owed millions, according to John Shields, TLC manger.
The former home of artist and architect of B.C. Binning - thought to be the first example of West Coast Modernism - has been in legal limbo since TLC announced plans last fall to sell the property to a corporation owned by developer Bruno Wall in order to help pay down $7.5 million owed to creditors. TLC has been in bankruptcy protection since October.
A Supreme Court judge ruled in January that TLC couldn't sell the home until it had sought out an owner who could receive it "on trust for the purpose of its preservation into the future for the public," as was stated in the will of Binning's widow Jessie.
Under the district's proposal, TLC would receive $1 for the Mathers Crescent property and the district would put up $150,000 to $300,000 for restoration and partner with community groups to oversee programming and raise funds to preserve the residence.
"The district's put a lot of good work into scoping out some of what's needed," Shields said. "Unfortunately they're only offering to do the transfer for $1, which would not be allowable under the (Companies Creditors Arrangement Act) requirements that we realize full value for the properties."
According to Shields' reading of the judge's ruling, "Good intentions were not enough."
"If you want to take on the trust obligation, bring your chequebook because there has to be a realization of funds, to satisfy the credit obligation, which is the reason TLC is in CCAA (protection) in the first place," he said.
Ironically, the legal fight and court monitor process has left TLC in even more debt, despite TLC having sold several other properties.
"We're $1 million more in debt now than when we started," Shields said. "It's a very expensive process and it's usually designed for affluent corporations that have gone bankrupt, not for charities that are trying to get through a tight squeeze."
Shields said there is at least one other proposal under consideration and Wall has not yet shown any interest in buying the home if it comes with the courtordered trust obligation. Representatives from advocacy groups the Binning Heritage Protection Society and the West Coast Modern League have both said district ownership of the Binning House would be the best possible outcome.
Hanging over the house's future is an appeal of the Supreme Court ruling from the University of British Columbia, which is arguing that it was entitled to any money made from the sale of the house, as per Jessie Binning's wishes in the event a suitable organization to preserve public access couldn't be found.
That appeal is to be heard on June 9.
