(Vancouver, BC) BC Métis Federation was not surprised to review the statement yesterday confirming millions lost as a result of the sale of the school in Abbotsford yesterday. According to an MNBC press release the organization sold the property located at 30691 Simpson Road in Abbotsford, BC for $2.25 million. The press release does not identify the date of possession or any other terms but confirms that outstanding debt of the MNBC will be an estimated $4 million.
According to the MNBC financial statements (2012-2013 MPCBC) the net book value of the land and building in Abbotsford was $3,219,518.00 (Note 4). This amount was added to the overall assets of the MPCBC in the statement of financial position as of March 31st, 2013. Therefore in addition millions left to repay, there will be an increase in the insolvency of the overall financial position of the MNBC by $969,000.00 in their future 2013-2014 financial statements. This will significantly increase the overall insolvency while leaving MNBC with a requirement to pay all of the outstanding loans and/or lines of credit for years to come and no asset to show for anything.
The MNBC originally purchased the property in June of 2009 borrowing $2,200,000.00 plus an additional $800,000 line of credit apparently to support renovations. In December of 2011 MNBC borrowed an additional $1,600,000.00 as a second mortgage. After a number of issues MNBC placed the property for sale in January 2012 shortly after obtaining the second mortgage. There have been a series of public denials and statements from MNBC representatives defending the purchase allegedly for various economic development reasons or the approved federal stimulus funding that never came. Over the years MNBC leadership has also made numerous presentations suggesting the value of the property in the range from $5.2 million to over $6 million.
BC Métis Federation President Keith Henry stated, “The true results of this MNBC sale are yet to be fully examined. The sale price will have to reduce associated legal and real estate fees deducted. We also know today the 2013 property taxes are unpaid and are approximately $118,000 once again due to penalties assessed for late payments. What is clear is that years of statements by MNBC representatives have been inaccurate and significantly overstated. This MNBC sale will increase the overall insolvency and overall debt of the MPCBC. Furthermore, regardless of future repayment terms on the millions lost, what is clear is that this alleged MNBC economic development initiative was a disaster from the beginning.”
BC Métis Federation President Henry concluded, “This was preventable if MNBC leadership and management had properly planned and provided full public transparency. MNBC leadership has failed their members and ultimately that is the real shame. MNBC is not financially sustainable and this new loss leaves MNBC (or MPCBC) even more vulnerable and will impact any programs they deliver because millions will have to be repaid somehow. MNBC can try to spin this anyway they like but the facts prove BC Métis Federation leadership have been correct all along.”
For more information about the BC Métis Federation please review the website at www.bcmetis.com.
BC Métis Federation
Vancouver, BC V5R 5W2
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[ilink url=”http://bcmetis.com/wp-content/uploads/BCMF-Press-Release-October-31st-2013-MNBC-Sale-Confirms-Millions-Lost-1.pdf” style=”download”]Download this Press Release in PDF[/ilink]
[ilink url=”http://bcmetis.com/wp-content/uploads/simpson-rd-info-Nov-2012.pdf” style=”download”]30691 Simpson Road Property Listing 6.1 Million Nov 2012[/ilink]