City of Surrey 2016 Annual Report

NOTESTOTHE CONSOLIDATED CITY OF SURREY  FINANCIAL STATEMENTS

For the year ended December 31, 2016 [tabular amounts in thousands of dollars]

21. SURREY CITY DEVELOPMENT CORPORATION

On April 24, 2007 the City of Surrey incorporated the Surrey City Development Corporation (“SCDC”) with the purpose of advancing the commercial, industrial, institutional and residential development of the City. The City is the sole shareholder of the Development Corporation and has provided financing to sustain operations and the development. As a controlled other government organization, the Corporation’s financial information is fully consolidated within the City’s financial statements.

As at December 31, 2016, SCDC has entered into Government Partnerships as follows: a) The Grove Limited Partnership

The Grove Limited Partnership (“Grove”) is a partnership for the development of 141 three-level townhomes located in the East Clayton area of Surrey. SCDC mutually contributed a beneficial interest in lands valued at $2,844,000 and cash consideration of $1,341,597, for a 50% interest in the Grove. The proportionate amounts included in the consolidated financial statements at December 31, 2016 are as follows:

Assets

$

124

Liabilities

(27)

Accumulated surplus

$

97

Revenues and expenditures for the year ended were $436 thousand (2015 – $895 thousand) and $103 thousand (2015 - $175 thousand), respectively. 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 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, 2016 are as follows:

Assets

$

364

Liabilities: Accounts payable

(61)

Loans payable

(10,409) (4,482) (4,120) (3,519) (22,591)

Deposits payable

Payable to partners

Deferred gain

Tangible capital assets Accumulated surplus

35,989 13,762

$

Revenues and expenditures for the year ended were $29 thousand (2015 – $117 thousand) and $6 thousand (2015 – $0), respectively.

65