Annual Report 2014

City of Surrey

Notes to the Consolidated Financial Statements For the year ended December 31, 2014 [tabular amounts in thousands of dollars]

1. Significant accounting policies (continued)

a) Basis of consolidation (continued)

iv) Surrey City Development Corporation The consolidated financial statements reflect the assets, liabilities, revenues and expenses of Surrey City Development Corporation (“SCDC”). All inter-departmental and inter-entity accounts and transactions between SCDC and the City are eliminated upon consolidation. SCDC has the following wholly owned subsidiaries and government partnerships, which are accounted for as follows:

i) Surrey City Investment Corporation (“SCIC”) - (100% owned and fully consolidated)

SCIC has a 50% ownership in nine holding companies (proportionately consolidated) referred to as the “Surrey Centre Tower Holdings”.

SCIC has a 29.4% ownership in the following entities (proportionately consolidated), referred to as the “Surrey Centre Limited Partnerships”:

• Surrey Centre Office Limited Partnership • Surrey Centre Hotel Limited Partnership • Surrey Centre Residential Limited Partnership

SCIC has a 50% ownership in the Croydon Drive Development Limited Liability Partnership (“Croydon”) - (50% owned and proportionately consolidated)

SCIC has a 50% ownership in 0918387 BC Ltd., the General Partner of Croydon) - (50% owned and proportionately consolidated)

ii) Grove Limited Partnership and Grove (G.P.) Inc. - (50% owned and proportionately consolidated) iii) Surrey City Investment (Industrial) Corporation (“SCIIC”) - (100% owned and fully consolidated)

SCIIC has a 50% ownership in the Beedie SCDC (34A Ave) Limited Partnership (“Beedie LP”) - (50% owned and proportionately consolidated)

SCIIC has a 50% ownership in the Beedie SCDC (34A Ave) G.P. Ltd., the General Partner of Beedie LP - (50% owned and proportionately consolidated)

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