‘Simply a scam’: B.C. community gardens growing big tax breaks for developers

Developers in B.C. have been allowed to make unused land available to gardeners and dog walkers in exchange for tax breaks, but some question whether seemingly underutilized community gardens are worth the large tax subsidies their property owners are receiving from the government. Shadowed by skyscrapers in downtown Vancouver’s financial district, 1166 West Pender Street houses more than 90 garden boxes, each growing tax breaks for the owners of the empty lot awaiting redevelopment. “It’s not particularly attractive, but it’s very financially rewarding for the developer,” said real estate consultant and planner Michael Geller. The province, through BC Assessment, can reclassify land from Class 6 business use to Class 8 recreational property/non-profit organization use for community gardens or dog parks. Geller believes the initial concept was good but said it’s been abused to the point urban plots are sprouting up everywhere - regardless of whether a community amenity is wanted or needed. “Essentially at one level, it’s simply a scam that developers have discovered where you can sometimes save hundreds of thousands of dollars in property taxes by making a space like this available,” Geller told Global News. According to the City of Vancouver, the future 32-storey office tower site at 1166 West Pender Street was converted from business to recreational class in 2025, with an assessed value of $50.8 million. If the property had remained in Class 6 for 2025, the city said the estimated municipal property taxes would have been approximately $323,000. Based on its new classification, the City of Vancouver’s property taxes payable were approximately $92,000, or $231,000 less. “It’s not really value for money for the taxpayers,” said Geller. A building permit was issued for 1166 West Pender Street in March 2023. A Nov. 24 City of Vancouver inspection certificate noted the project, which is being developed by Hines and Reliance Properties, was on hold. Get daily National news Terms and Conditions and Privacy Policy . In a statement to Global News, the companies said real estate developers increasingly convert idle sites into community spaces like gardens or dog parks “to provide social value and green space, reduce crime, and receive tax relief during an economic downturn”, adding construction is expected to start once a pre-lease is secured. “While in the pre-leasing stage of 1166 West Pender, Hines and Reliance are utilizing the site for a community garden, which is well-used and has received positive feedback from community members,” stated Hines and Reliance Properties in an email. Vancouver COPE councillor Sean Orr said seeing a community garden surrounded by glass towers brings up bigger questions around speculation and land banking. “Why are we rewarding these people sitting on this land,” Orr told Global News in an interview. “There’s jurisdictions across the world that would do the opposite, that would tax that speculation and tax the increase in land value to provide other benefits for the city that aren’t just, you know, a few containers.” The City of Vancouver said it does not maintain a list of...

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