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First the French, now the Canadians are looking to sell some of their most famous building in an effort to generate revenue and avoid expensive repair work on aging buildings. Trying to maintain a large quantity of historic and less than efficient buildings is placing a strain on governments across the world. Combine that with an overburdened social compact and taxation that already has reached the limits of what the citizens will stand for, governments are jettisoning their historic treasures to the private sector to raise funds.

This selling of capital in the capitols is going to be a short term solution but for the social scientists it may be the precusor to the end of the socialistic government programs as they crash under their own weight.

The properties include such landmarks as Library and Archives Canada, the Lester B. Pearson Building, the East and West Memorial Buildings and the Place du Portage and Tunney’s Pasture complexes.

In the first phase of the plan, the government is likely to sell nine of its most attractive properties, worth an estimated $1.5 billion, in Ottawa, Toronto and Vancouver. Overall, the government’s real estate holdings are estimated to be worth as much as $7 billion.

The impending sale is being driven by the government’s unwillingness to make the estimated $4-billion investment needed to renovate and upgrade its aging portfolio of 325 real estate holdings across Canada.
Instead, those who buy the buildings would make the necessary renovations. In return, the government would rent back space on 25-year leases, providing the new owners with a safe and assured revenue stream.

James McKellar, director of the Real Property Program at York University’s Schulich School of Business, says such a sale and lease-back deal will almost certainly increase costs for taxpayers.
“On the face of it, it looks good — the government’s going to get $1.5 billion,” he said. “But you don’t make money out of nothing. In the end, it’s going to cost them more. via Canada.com

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