Overview of CertiWood Property Investigation
Description of Property
The CertiWood Property consists of several structures sitting on slightly over one acre of land located at 735 West 15th Street, City of North Vancouver. The main structure is an 8,100 sq ft laboratory building, with an unusual, many-faceted plywood roof. Next to the main building is a 4,032 sq ft one story annex building with a high ceiling, and a 1008 sq ft plywood demonstration house. We understand all buildings are approximately 40 years old.
The site is just off Bewicke Avenue, a block and a half north of Marine Drive in North Vancouver. (See Location of CertiWood Property). It is just across a small street (Mosquito Creek Lane) from Mosquito Creek, and about a four-block walk from Capilano Mall.
The property is owned by the Canadian Plywood Association (“Association”), a trade association of major BC forest and wood products companies. We understand the structures were built expressly for, and are occupied by, CertiWood Technical Centre. CertiWood is an agency or affiliate of the Association, set up to test and certify engineered wood products on behalf of the industry.
The main laboratory building is shown below. We understand its distinctive, many-faceted plywood roof was state of the art plywood technology when it was built approximately 40 years ago, and was intended to showcase the strength and durability of plywood structures.
Initial Investigation
The New Building Task Force came across the property in the summer of 2008, and contacted CertiWood directly to see if there might be any potential interest in selling. The President of CertiWood indicated some interest, and invited NBTF’s inspection. Members of NBTF, as well as the President of NSUC, made several tours of the property in August 2008.
In investigating, NBTF was particularly interested in determining whether the structures might be suitable for renovation into church facilities. Our initial reaction was favourable. The 8,100 sq ft laboratory building contains a very large (7,200 sq ft) column-free, high-ceiling open space that might be converted into a sanctuary. The space has much natural light from skylights above, as well as from windows along the periphery. The 4,000 sq ft annex also seemed potentially useable for classrooms, fellowship hall, and/or administrative offices.
For pictures showing the interior and exterior of the structures, see Images.
The architect members of the NBTF (Brian Hemingway, Roman Czemerys and Mark Mayall) did some preliminary analysis of the possibilities for renovating the buildings into church facilities, including very preliminary sketches of site plans. Very preliminary budget studies were also done to determine whether a renovation project might be feasible if the property could be bought for a price somewhere between $4,000,000 and $5,000,000. However, no preliminary renovation plans were begun or formal cost studies undertaken before the investigation was put on hold, as noted below.
Listing by CB Richard Ellis
In September 2009, soon after NBTF had begun its investigation of the property, the property owner listed it for sale with CB Richard Ellis (CBRE), the same commercial brokerage firm that handled the listing and sale of 370 Mathers on behalf of NSUC. CBRE put together a detailed brochure describing the property, and distributed it to its client list of developers and other commercial real estate parties in October, 2008.
[To download a copy of CBRE’s brochure on the CertiWood property, click on CBRE Brochure.]
CBRE Competitive Bidding Process
Discussions with CertiWood staff indicated that, although one or more members of the governing board of the owner might be interested in selling the property to a buyer that would renovate the distinctively-roofed laboratory building and leave it standing for the future (perhaps as a testimoony to the usefulness and durability of plywood), other members were interested in early sale for maximum price. The owner, as a trade association without significant other assets, would need the proceeds of the sale in order to buy and develop a new home for the CertiWood agency to move to.
This desire for early sale at maximum price seemed confirmed by CBRE’s announcement that its competitive bidding process would start at the end of October, with a bidding deadline two weeks later, November 12, 2009. The suggested listing price was $6,900,000.
Deadline Too Soon
At this point, it seemed clear to NBTF that NSUC could not submit a realistic bid for the property within the time frame imposed by the CBRE bidding deadline:
- NBTF was just beginning to develop the critical information needed to evaluate the potential of the property for renovation into a church for us – especially a preliminary renovation plan and studies as to what these renovations would cost. There had not been enough time to develop such a plan and cost information.
- Lacking this critical information, it was not realistic to seek approval to a bid from NSUC’s Board, nor from the congregation. Even if we had had the information, there would not have been enough time to give the requisite notice to hold a congregational meeting by the November 12 bidding deadline.
Moreover, NBTF was well aware any bid it would offer on CertiWood would have to have a “double rezoning contingency”:
- The contingency that Hynes would get Mathers rezoned by the District of West Vancouver, and
- The contingency NSUC, as contract buyer of the CertiWood property, could get the CertiWood property rezoned by the City of North Vancouver to permit church use.
Other potential bidder would be expected to have only the second of these rezoning contingencies, so that any bid by NSUC would have a huge disadvantage.
For these reasons, NBTF decided to put its investigation of the CertiWood property on hold, pending further developments of the CBRE bidding process.
Follow up
NBTF was informed that several bids on CertiWood were received by CBRE, and that negotiations with one of the bidders has been taking place. Very recently we learned that this bidder may have withdrawn from negotiations, and that CBRE may be approaching the other parties who have expressed interest in the property.
