Shut Down The Surrey City Development Corporation (SCDC) 

Facts

The SCDC currently carries $96 million in net debt, $70 million of which is owed to the City of Surrey.

In 2013, the SCDC reported $27 million in financial assets and $123 million in liabilities.

In 2013, the SCDC had an annual deficiency of $39 million, while operating expenses doubled by $1.4 million.

The City supports the SCDC through property transfers at “historical values” (far below market value), cash contributions, low-interest loans and equity investments.

According to KPMG LLP Chartered Accountants, who serve as the independent auditors of the SCDC:

“The Corporation is classified as an Other Government Organization as it is not yet considered self-sustaining.”

“The Corporation’s ability to continue operations is dependent upon continued future profitable operations and continued support by the City.”

The current parasitic relationship the SCDC has to the City of Surrey is the result of over 7 years of incorporation since April 24, 2007.

Proposal

Wind down the SCDC over the next year and begin to liquidate assets.