2017 Finance Annual Report

NOTESTOTHE CONSOLIDATED CITY OF SURREY FINANCIAL STATEMENTS

For the year ended December 31, 2017 [tabular amounts in thousands of dollars]

17. SURREY CITY DEVELOPMENT CORPORATION (CONTINUED) b) Surrey Centre Limited Partnerships

Surrey Centre Limited Partnerships (“SCLPs”) are various partnerships for the development of mixed-use real estate developments in the City. The SCLPs financial results are proportionately consolidated with those of the Corporation based upon the Corporation’s partnership interest of 24.4% (2016 – 29.9%). The liability of SCDC is limited to the cash and land which it will contribute to the SCLP through SCIC. The proportionate amounts included in the financial statements at December 31, 2017 are as follows:

Assets

$

1,226

Liabilities

(30,410)

Tangible capital assets

43,085

Prepaid

14

Accumulated surplus

$

13,915

Revenues and expenditures for the year ended were $165 thousand (2016 – $0 thousand) and $30 thousand (2016 – $35 thousand), respectively. c) Beedie Limited Partnership Beedie Limited Partnership (“Beedie LP”) is a partnership in the business of real estate investment and development of a build-to-suit industrial building in the City. Development of the industrial building was completed in 2016 and the building has since been occupied by a tenant under a long term lease. SCDC is an equal partner and will provide contributions of cash and land to fund development. In 2016 Beedie LP’s financial results were proportionately consolidated with SCDC based upon the 50% share of total contributions. During 2017 Beedie LP met the criteria of a government business partnership and results are accounted for under the modified equity method. The liability of SCDC is limited to the cash and land which it contributed to Beedie LP.

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