Surrey mayor defends land swap deal as 'politically driven' criticism mounts

Surrey Mayor Brenda Locke is standing firm on a landmark land swap announced June 30 that will trade three city-owned parcels for a five-acre site where a 10,000-seat City Centre Arena is slated to rise in Whalley.

McCallum, the former mayor leading the Safe Surrey Coalition into the October 17 civic election, has charged that the city paid far above market value. According to his analysis, Surrey offered $116.6 million in public assets for a site assessed at $86.8 million — a $29.8 million premium. He noted that land in City Centre typically trades at $8 to $10 million per acre; the city paid $23.3 million per acre.

McCallum also argued the developer, Wesgroup Properties, bought the four-tower site at the market peak in November 2022 for $108.5 million, then watched its value crash as the condo market cooled. "The developer bought at the top of the market. The condo market crashed. His project does not pencil," McCallum said, characterizing the deal as a taxpayer-funded rescue.

Locke rejected the "bailout" framing, saying she and city council had "triple-checked" the numbers with Ernst & Young, an accounting firm. "We are very confident in the deal that was made; it was made to be fair for both the owner of that property and for the City and especially for our taxpayer," she said. She also noted the Safeway site sits at a transit hub — "all the transit lines go there" — and has generated strong interest from the city.

The project, a $360 million development that could be completed by 2030, involves the City of Surrey, the Surrey City Development Corporation, and the Vancouver Giants hockey team. The Giants plan to relocate from Langley Events Centre.

EY-Parthenon Corporate Finance provided a report to city manager Rob Costanzo on June 2 assessing the exchange and concluding that proposed values fell within a reasonable range of appraised values.