Hamilton Marsh Conditional Purchase

All the questions asked through the Q&A function of the Get Involved website have been answered publicly and are available to be viewed by anyone. Here is the link the Q&A section getinvolved.rdn.ca/hamilton-marsh-conditional-purchase?tool=qanda#tool_tab. You can also navigate to it be scrolling to the start of the "What's New" section of the Get Involved website, you should see a title beside "What's New" labeled "Questions", if you click on the word Questions it will show a list of the questions posed by members of the community and the answers the RDN has provided. Please note, questions only appear on this list after an answer has been provided.

Acquiring Hamilton Marsh as a conservation site has been a priority for the Regional District of Nanaimo for many years. The 2023-2026 Regional District of Nanaimo Strategic Plan prioritizes protecting vital lands and ecosystems and includes a goal of accelerating the acquisition of regional parkland to secure and steward natural areas with high conservation and recreation values. Hamilton Marsh contains many priority West Coast Region (WCR) environmental values including previous occurrences of species and ecosystems at risk.

Hamilton Marsh was first identified in the Regional District of Nanaimo’s (RDN) Parks System Plan in 1994 following public interest in preserving the site. It was confirmed again through public engagement in 2005 during the development of the Regional Parks and Trails Plan, as well as in 2022 as part of developing the Parks and Trails Strategy.

The $30 million purchase price is considered fair market value for the property. The RDN has invested considerable time and resources over decades to advance this conservation initiative and now has a fair deal in place to secure the lands for parkland conservation. Funding partners are actively being pursued, including conservation groups and the provincial ministries.

If the RDN is successful in securing the property a management plan for the park and conservation area would be developed in collaboration with RDN funding partners and would include engagement with residents of the region. Once the plan is finalized, detailed cost estimates for any proposed amenities and annual operational costs would be presented to the RDN Board for review and approval. Developing management plans requires a considerable amount of time and resources, developing a management plan prior to purchasing a property would not be considered an efficient use of resources.

The land that Hamilton Marsh is comprised of is private managed forest, class 7. Class 7 Managed Forest properties in British Columbia are not assessed at market value. Instead, they are valued using legislated rates set under the Assessment Act and the Managed Forest Land and Cut Timber Values Regulation (B.C. Reg. 90/2000). BC Assessment applies regulated schedules to determine the bare land value and adds the value of harvested timber based on prescribed formulas, ensuring assessments reflect forest use rather than land sales.

 The Hamilton Marsh property encompass a total of 360 hectares, which includes not only the 36-hectare marsh but also 324 hectares of mature forest. The diverse landscape significantly contributes to the overall value of the property. To ensure the purchase price is in line with market conditions, the RDN commissioned comprehensive land and timber appraisals through industry professionals.

 By considering both the ecological value of the marsh and the forest along with timber values, the price reflects a fair and informed assessment of the land's worth. The acquisition of Hamilton Marsh Lands is seen as an investment in preserving a vital ecological asset that offers long-term environmental and community benefits.

The RDN has budgeted $350,000 for professional fees in relation to the purchase of Hamilton Marsh, funded from reserve funds of the Regional Parks and Trails service. This amount includes legal fees, professional assessments and costs related to the subdivision. 

 If the RDN is successful in securing the property, a management plan for the park and conservation area would be developed in collaboration with RDN funding partners and would include engagement with residents of the region. Once the plan is finalized, detailed cost estimates for any proposed amenities and annual operational costs, including staffing requirements, would be presented to the RDN Board for review and approval.

In addition to the purchase price, the Regional District of Nanaimo (RDN) has allocated funding from the Regional Parks and Trails Service reserve to cover professional services required to complete the terms of the conditional purchase and sale agreement. These services include legal, assessment, permit and subdivision-related work.

 If the RDN is successful in securing the property a management plan for the park and conservation area would be developed in collaboration with RDN funding partners and would include engagement with residents of the region. Once the plan is finalized, detailed cost estimates for any proposed amenities and annual operational costs would be presented to the RDN Board for review and approval.

There has not been public consultation specific to the current purchase and sale agreement for Hamilton Marsh. However, the protection of this property has been a longstanding regional priority. 

Hamilton Marsh was first identified in the Regional District of Nanaimo’s (RDN) Parks System Plan in 1994 following public interest in preserving the site. It was confirmed again through public engagement in 2005 during the development of the Regional Parks and Trails Plan, as well as in 2022 as part of developing the Parks and Trails Strategy. The RDN has observed consistent public support for protecting the forest and wetland over the past three decades. 

The RDN Board has prioritized the protection of vital lands and ecosystems in its Strategic Plan. Securing Hamilton Marsh is a great opportunity to advance the goal of securing natural areas with high conservation and recreation values.

There are a couple different ways to contribute to the purchase. The Regional District of Nanaimo (RDN) can receive donations and issue donation receipts. Alternatively, Nanaimo and Area Land Trust (NALT) is accepting donations on their website nalt.bc.ca/hamilton-marsh. More donation options may become available as the RDN secures additional funding partners. The Get Involved project page will be updated as new partners come onboard. 

The RDN truly appreciates your generous decision to donate the proceeds from your artwork sales toward the purchase of Hamilton Marsh.

Acquiring Hamilton Marsh as a conservation site has been a priority for the Regional District of Nanaimo for many years. The 2023-2026 Regional District of Nanaimo Strategic Plan prioritizes protecting vital lands and ecosystems and includes a goal of accelerating the acquisition of regional parkland to secure and steward natural areas with high conservation and recreation values. Hamilton Marsh contains many priority West Coast Region (WCR) environmental values including previous occurrences of species and ecosystems at risk.

The RDN has invested considerable time and resources over decades to advance this conservation initiative and now has a fair deal in place to secure the lands for parkland conservation. Funding partners are actively being pursued, including conservation groups and the provincial ministries.

Section 3 of the Regional District Liabilities Regulation in the Local Government Act allows regional park and regional trail borrowing without elector approval if the total of the outstanding amount of borrowing for the service and the amount proposed to be borrowed will not exceed the greater of $5 Million, and an amount equal to $5 per $1,000 of assessed value. 

The current borrowing amount of the Regional Parks and Trails Service plus the $21.2 million proposed borrowing are significantly lower than $5 per $1,000 of assessed value, the current calculation being $329 million. Therefore, the RDN is well within the borrowing limits and can proceed without requiring a referendum.

The $30 million purchase price is considered fair market value for the property. Fair Market value is not a fixed number, but a range of value that may be negotiated between a vendor and purchaser. This fair market value determination follows the definition used by the Appraisal Institute of Canada (AIC), which considers it to be the most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and the seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress.

In this case, the Regional District of Nanaimo (RDN) and Mosaic Forest Management were not under any pressure or duress to complete the sale. To help inform the RDN on the property and to ensure that the purchase price was fair, the RDN used a comprehensive third-party appraisal, an independent timber cruise, and an audit of the timber valuation.