The Cambie Corridor Plan was in the early stages of development at the City of Vancouver’s Planning Department. With the Canada Line as its catalyst, the plan included opportunities for Transit Oriented Development. But the density, height allowances and general architecture of that redevelopment was yet to be determined. Dancole had long owned the property along Cambie to the north of Marine Drive, and had expressed an interest in selling it. But without knowing what could be built, it was nearly impossible to set a fair market value for the land.
Instead of being paralyzed by uncertainty, Intracorp proposed a solution that addressed possible changes during the planning and approvals process. A minimum valuation was negotiated after establishing an agreeable base density. From there, a formula was set up that would credit Dancole for any additional density achieved.
The solution allowed Dancole and Intracorp to work on a deal without having to wait for the Cambie Corridor Plan to be finished. Both parties got a fair deal that eliminated any uncertainty and anxiety. The end result? Planning called for additional density at the MC² site. This resulted in Dancole realizing increased value, in excess of the initial market land value.