Building Block - SCDC · at the University of British Columbia, and the HR Fullerton Professor of...

Building Block

2012 Annual Report

Building Block

Building Block SCDC 2012 Annual Report iii

104th Avenue, Surrey – The New City Hall

Surrey’s Building Block

SCDC is one of the building blocks that the City of Surrey is

using to make the City a more vibrant, sustainable and complete

community. At SCDC, we help advance the City’s fi nancial,

business and community goals through the development of the

City’s surplus land holdings and through strategic acquisition

of income producing properties ripe for redevelopment.

We undertake projects throughout Surrey that involve

industrial, commercial, and residential developments designed

to generate positive fi nancial returns and achieve important

community objectives.

SCDC is wholly-owned by the City of Surrey but operates

with a market-based approach to development opportunities.

Our business practices are consistent with a private sector

discipline which includes having a professional board of directors.

We endeavor to be bold, creative, innovative and entrepreneurial

in our assessment of real estate needs and opportunities but

recognize the need to protect the City’s investment by thorough

and careful due diligence like any leading commercial enterprise.

By fostering industry relationships, sharing knowledge, solving

problems, removing obstacles, and pursuing long-term industry

partnerships, we encourage and accelerate private sector

developments within the City of Surrey.

We are pleased to again report positive fi nancial results in 2012.

We welcome questions and comments and are committed to

transparency so please visit our website at www.scdc.ca, send

us an email, or call us if you would like to learn more about SCDC.

Building Block SCDC 2012 Annual Report v

Building Block

Letter from the Chairman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Meet the Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Letter from the President & CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Meet the Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Selected Projects

3 Civic Plaza . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Bridgeview Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

New City Hall . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

Clayton, ‘The Grove’ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

Campbell Heights Business Park . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Southpointe 99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Summarized Financials

Management and Board Responsibilities for Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Independent Auditors Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Summarized Consolidated Statement of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Summarized Consolidated Statement of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Summarized Consolidated Statement of Change in Net Financial Assets (Debt) . . . . . . . . 26

Summarized Consolidated Statement of Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Note 1 to the Summarized Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . 28

Table of Contents

to bring SCDC to its present position of strength and promise.

Ken continues as a Director of SCDC so we have the benefi t

of his corporate history and his insights from many decades in

real estate development.

Lastly, I want to thank and publicly recognize the pivotal roles

played by Mayor Dianne Watts and Councillor Linda Hepner

in establishing SCDC through Surrey City Council and for their

excellent service as Directors despite their weighty Council and

other civic duties. Their past commitment and contributions to

SCDC have been central to the success of SCDC documented

in this 2012 Annual Report.

Dr. Michael Goldberg

Chair, SCDC

Letter from the Chair

I am honoured to contribute to the SCDC 2012 Annual Report in

this my fi rst year as Chair of the Board of SCDC. I am enormously

excited by our progress to date and even more excited by the

future that lies ahead.

In just six short years SCDC has realized a number of its key

objectives. In 2011 SCDC turned a profi t for the fi rst time, and we

increased that profi tability this year. As this annual report shows

we earned $4.9 million in 2012 and now have over $139 million

in assets on our books. The pipeline of new investments we are

considering is full, we have developed strong partnerships with

some of the most respected and successful developers in the

region, and we have been a key element in advancing growth

the new Surrey City Centre.

This annual report provides the details of SCDC fi nancial progress

and highlights a few of the projects that we have underway.

However, I also want to focus on some of the less visible things

we have accomplished so that SCDC will be known as well for its

governance, accountability and transparency practices in addition

to the excellence of its real estate projects.

During 2012 the SCDC Audit and Finance Committee (A&FC)

worked closely with management, and with our external auditors,

to develop the best measures possible of SCDC’s fi nances and

accounts. Together they are developing even better measures

and means for presenting these measures to management and the

Board of Directors to ensure that SCDC is model of strong fi nancial

controls, transparent accounts, and fi nancial prudence.

SCDC is fundamentally committed to be the best in class

concerning our transparency, accountability and accessibility.

A major part of the role that I have taken on as Chair is be accessible

to explain and share widely our plans and goals. Accordingly, in

the coming year, we look forward to presenting our achievements

so that our eff orts can be better and more widely understood.

I would be sorely remiss if I did not publicly acknowledge here

the wonderful eff orts of our founding Chair, Mr. Ken Nixon.

Ken did the yeoman’s work with our Board and Management Team

Building Block SCDC 2012 Annual Report 01

Allan Davies Through 30 years of

professional service, Allan Davies

transformed Edmonton’s drinking water

supply into one of the pre-eminent

systems in North America. He has been

awarded an Honorary Membership in

the American Water Works Association

for accomplishments in the fi eld of water

supply; and the George Warren Fuller

Award for distinguished service. He retired

as President of EPCOR Water Services

after transforming the organization from

a regulated public utility into a commercially

oriented business that designs, builds, and

operates water and wastewater systems

throughout Western Canada.

Allan holds a Bachelor of Science in Civil

Engineering from the University of Calgary.

He was selected by the Public Administration

of Canada as an individual to the 100 Years

of Excellence Group. Allan has been on the

SCDC Board of Directors since 2007 and

currently chairs the SCDC Audit Committee.

Hugh Matthews Hugh Matthews is

a lawyer and has practiced most of his

40 years at the bar with the Vancouver law

fi rm of Farris, Vaughan, Wills & Murphy LLP.

During his career, Hugh has been involved

in numerous real estate developments

including the initial development of

Granville Island, Blackcomb Mountain,

BC Place, and many other projects

throughout the Lower Mainland and other

parts of the Province.

Hugh has been a director of SCDC since

2007 and over the years has been involved

in a number of community and legal

organizations. He holds an undergraduate

degree in Economics from the University

of Western Ontario and a Law degree from

the University of British Columbia.

Meet the BoardIndependent Directors

Ken Nixon is an executive with over

forty years experience in both industrial

and real estate development. His past

corporate involvements include senior

positions progressively with Corning Glass

Works, Great Northern Capital, Cadillac

Fairview, Markborough Properties, and

latterly as Vice President of Real Estate at

Sears Canada.

Ken holds a BSc. In Civil Engineering from

the University of Manitoba and an MBA

from the University of Western Ontario.

02 Building Block SCDC 2012 Annual Report

Gary Cowan is an executive with extensive

real estate and corporate development

expertise including in residential and

commercial, hotel and resource-based

businesses in Canada and the United

States. He brings a wealth of experience

in both the private and public sectors.

As president of a consulting company for

the last ten years, Gary is presently the CEO

of Bear Mountain Resort with responsibility

over operations, planning, and the strategic

direction of the hotel, golf and residential

development in Victoria, BC. Prior to this he

served as COO of the operating company

for the development of the Whistler Athletes

Village for the 2010 Winter Olympics.

Gary also practiced corporate and real

estate law for 12 years prior to entering

the management of a major real estate

company in 1988.

Gary holds a Bachelor of Arts in

Economics and a Bachelor of Laws from

the University of Alberta.

Meet the BoardCity Directors

Dr. Michael Goldberg His academic

and public career has spanned over four

decades. From 2002 to 2004, he was

Associate Vice President International

at the University of British Columbia,

and the HR Fullerton Professor of Urban

Land Policy in the UBC Sauder School

of Business where he served as Dean

from 1991 to 1997. His research addresses

cities, their transportations, housing and

land use systems and their competitive

position in the global economy and the

policies needed to globally enhance this

competitiveness.

Michael has a PhD in Economics from

the University of California at Berkeley.

He is the Chair of the SCDC Board and

a director of the Canada Pension Plan

Investment Board.

Murray Dinwoodie Murray Dinwoodie

is the City Manager of the City of Surrey.

Councillor Linda Hepner Linda Hepner

was elected to Council in 2005.

Mayor Dianne Watts has been the

Mayor of the City of Surrey since 2005.

Jim Cox is President & CEO of SCDC.


G U I L D F O R D

F L E E T W O O D

W H A L L E Y

S U R R E Y C I T Y C E N T R E

C L O V E R D A L E

S O U T H S U R R E Y

N E W T O N

W H I T ER O C K

Cedar Hills Shopping Centre

East Newton Business Park

Cloverdale Mall

Campbell Heights EastFire Hall No.17

Southpointe 99

Newton

Campbell Heights Phase 1

Campbell Heights North

Semiahmoo

Clayton the Grove

3 Civic Plaza

Bridgeview

Boundary Plaza Shopping Mall

99

91

99

99A

1

New City HallSchmidt Berg

Brick/Bright

10

10

10

8 AVE.

16 AVE.

24 AVE.

32 AVE.

56 AVE.

64 AVE.

120

ST.

KIN

G G

EO

RG

E B

LVD

.

KIN

G G

EO

RG

E

BLV

D.

FRASER HWY.

80 AVE.

72 AVE.72 AVE.

88 AVE.

1

15

15

152

ST.

I am pleased to report that SCDC had another profi table year and will pay its fi rst dividend

to the City of Surrey in 2013.

The development team at SCDC has made great progress on all of our real estate projects

and they now have construction and development activities underway throughout the City.

On the administration side, the people in the offi ce continue to oversee and implement

signifi cant improvements to our systems and procedures and strengthen our management

and governance processes.

I want to acknowledge the contributions of our many private sector partners who are

providing expertise, support and investment as we jointly undertake our joint venture

real estate development projects.

In closing, I want to thank our Board of Directors and Surrey City Council for their support,

advice, trust, and guidance as we have built SCDC into a successful company over the last

few years.

SCDC is now well placed to make positive sustainable contributions to the evolution of

the City of Surrey.

Jim Cox

President & CEO, SCDC

Letter from the President & CEO


From left to right

Heather Marshall joined SCDC in

2009 and is the Manager of Corporate

Governance. Heather has over thirty-fi ve

years of experience in the development

community in both private and public sectors;

emphasizing development consulting,

project administration, and business setup

and organization. Heather holds a Masters

in Education, a Degree in Business

Administration, and is currently studying

Philosophy at Oxford University.

Aubrey Kelly joined SCDC in 2009

as Vice President Construction and

Development, and became Chief

Operating Offi cer in 2012. Aubrey has

almost twenty years of experience in the

development industry, including 5 years

building humanitarian projects in Mexico.

In 2011, Aubrey obtained his MBA from

Simon Fraser University.

Meet the Team

Amanda Kennedy joined us this year

as Project Accountant, bringing with her

accounting experience in public practice.

Amanda holds a Bachelor of Technology

in Accounting from BCIT, and is currently

in the PACE level of the CGA Designation.

Jim Cox joined SCDC as President and

CEO in 2008. He has had almost forty

years in the real estate business including

stints as President of Vancity Enterprises,

President of BCR Properties and Director

of Planning and Development of the Coal

Harbour project for Marathon Realty.

Emily Taylor joined SCDC in July

2012 as Vice President Finance and

became our Chief Financial Offi cer in

January 2013. Emily brings with her

accounting and fi nancial experience in

the development sector, most notably

as Vice President Finance for the

Whistler Development Corporation.

Josh Anderson joined SCDC in 2012 as

Development Manager. Josh brings over

ten years of development experience in

Vancouver, Southeast Asia, and the Middle

East. Josh has managed the development

of variety of projects including mixed-use

master plans and multi-family residential.

Sarah Atkinson joined us in 2012 as

Development Manager, bringing with her

experience in project management and

urban planning in both the Lower Mainland

and abroad. Sarah has a BSc in Planning,

and an MBA in Construction and Project

Management. She is a member of the

Canadian Institute of Planners.

Natalia Retandy joined us this year

as Offi ce Administrator. Natalia holds

a Bachelor of Arts in Criminology from

Simon Fraser University, and is currently

studying Business Administration at the

University of Victoria.

06 Building Block SCDC 2012 Annual Report

“Surrey’s urbanization of City Centre

is a uniquely ambitious adventure in

city-building and one in which Century

Group is proud to collaborate with

SCDC in the creation of 3 Civic Plaza.

This is a project that will prove to be an

important landmark for the future Surrey.

With its luxury residences, fi rst-class

hotel and offi ce uses, the project

represents one of the most sophisticated

mixed-use buildings in Metro Vancouver

and one that is sure to be a form maker

for the kind of City Centre that Surrey

imagines for its future.”

Sean Hodgins

Century Group

3 Civic Plaza 3 Civic Plaza is in partnership with Century Group

and Delta West Developments on a major mixed-use

building within the heart of the new Surrey City Centre.

This building, the tallest south of the Fraser River,

will combine retail, hotel, offi ce and residential uses

in a signature tower directly adjacent to the Surrey

Public Library, the New City Hall, and the Surrey

Central SkyTrain Station.

08 Selected Projects SCDC 2012 Annual Report

3 Civic Plaza Sales Centre – Show Home

Bridgeview Drive, Surrey – Bridgeview Industrial Building

Bridgeview Industrial

SCDC is constructing a build to suit industrial building

in Bridgeview for Central City Brewing and Distilling

Corporation. This project will act as an income property

in SCDC’s portfolio while helping a local business

expand within Surrey. This project will be completed

by the fall of 2013.

“Together with Surrey City

Development Corporation, Central

City Brewers + Distillers have built

the industry leading Craft Brewery

+ Distillery for British Columbia.

The facility will set a new standard

in Craft brewing and distilling,

boasting strong environmental

standards, waste management and

energy management. We believe

in partnering with organizations like

SCDC that share our core values of

honesty, integrity, and a great pint

of beer!”

Darryll Frost

Central City Brewers + Distillers

Selected Projects SCDC 2012 Annual Report 11

“The City Hall project has impressive

architecture, engineering and

construction, but by far the most

impressive aspect of the project is

its unique ability to act as a catalyst

for a new city. We are not just building

a single project but starting a city.”

Dan Giordano

Pivotal Projects

New City Hall SCDC is providing development management services

for the design and construction of the New City Hall

which is located in the heart of Downtown Surrey.

The building will be completed in the fall of 2013 and

is a major component of the City’s initiative to create

a vibrant, active, pedestrian-friendly city centre.

104th Avenue, Surrey – The New City Hall


Clayton, ‘The Grove’

The Grove is an exceptional family-oriented community

of 141 parkhomes, nestled in the heart of the vibrant

enclave of Clayton Heights. The Grove’s unique

“two-ringed” site design, with forested inner courtyard,

provides green space for all, maximizing liveability

and intelligent design. The location is unbeatable for

families at all stages as it is close to brand new schools,

transportation, shopping, recreation and entertainment

in this new, but established, neighbourhood.“Over the past decade, Townline

Homes has been providing innovative

and quality homes to many new existing

families in the Clayton area of Surrey,

and are thrilled to be able to continue

this tradition with a partner like SCDC.

Their professional and disciplined

approach to the new home industry is

consistent with our own values and will

help to ensure the long term value to

many new home owners at The Grove

for years to come.”

Rick Ilich

Townline Homes


Campbell Heights Business Park

SCDC has undertaken zoning, subdivision, and servicing

of this 250-acre business park. Colliers International has

been retained to market the project and the industrial

lots from the fi rst phase are now completely sold, with

buildings commencing construction and planning for the

second phase underway.


32nd Avenue & 192nd Street, Surrey – Campbell Heights Business Park

“We are proud to participate in this

project by partnering with Surrey City

Development Corporation to bring

South Surrey its fi rst LEED GOLD

certifi ed offi ce development. As a

neighbour to the project KNV is excited

to see this kind of development come

to this area and we look forward to the

continued expansion of commercial

tenancies and businesses that this

type of facility attracts.”

Rob Wesley

KNV Chartered Accountants LLP

Southpointe 99 SCDC is in joint venture with partners from the

Surrey-based accounting fi rm KNV Accountants to

develop a 110,000 sq.ft. offi ce park in two phases

near Highway 99 and 152nd Street in South Surrey.

This state-of-the-art LEED GOLD certifi eda offi ce design

will provide environmentally sustainable buildings with

employee-friendly and fi tness amenities.


SCDC is proud to be part of the creation of

the new Surrey City Centre, to be a building

block contributing to the livability and vitality

of each of Surrey’s Town Centres with our

real estate development and investment

projects and to be generating positive

fi nancial returns for the Citizens of Surrey.

SCDC

1870 – 13450 102 Avenue

Surrey, BC

V3T 5X3

T: 604 581 8787

F: 604 582 9379

www.scdc.ca

We welcome questions and comments and are committed

to transparency so please visit our website, send us an email

or call us if you would like to learn more about SCDC.


2012 SummarizedFinancial Statements

Management and Board Responsibilities for Reporting

The 2012 Annual Report, including the summarized consolidated fi nancial statements,

were prepared by the management of SCDC. These summarized statements are

based on complete consolidated fi nancial statements prepared in accordance with

the Canadian public sector accounting standards, and the integrity and objectivity of

these statements are management’s responsibility. Management is also responsible

for implementing and maintaining a system of internal controls to provide reasonable

assurance that reliable fi nancial information is produced.

The summarized consolidated fi nancial statements do not contain all the disclosures

required by Canadian public sector accounting standards and readers are cautioned

these statements may not be appropriate for their specifi c purposes. Management

considers that the basis of presentation is appropriate to summarize fi nancial information

for inclusion in the annual report. The complete consolidated fi nancial statements

including Auditors’ Report are available on request.

The Board of Directors are responsible for ensuring that management fulfi lls its

responsibilities for fi nancial reporting and internal controls and exercises these

responsibilities through the Board and through an Audit Committee. Internal fi nancial

reports are reviewed on a quarterly basis and externally audited fi nancial statements

are reviewed annually. The Board of Directors has approved this Annual Report.

The external auditors, KPMG, conduct an independent examination, in accordance

with Canadian auditing standards, and express their opinion on the statements.

The external auditors have full and free access to fi nancial management of SCDC

and meet when required. KPMG’s report on the summarized consolidated fi nancial

statements appears herein.

On behalf of SCDC

Jim Cox,

President and CEO

Emily Taylor,

Chief Financial

Offi cer

Dr. Michael Goldberg,

Chair of the Board

Allan Davies,

Chair of the Audit

Committee

22 Summarized Financials SCDC 2012 Annual Report

To the Board of Directors of Surrey City Development Corporation

The accompanying summary consolidated fi nancial statements of Surrey City

Development Corporation, which comprise the summary consolidated statement of

fi nancial position as at December 31, 2012, the summary consolidated statements of

operations, changes in net debt and cash fl ows for the year then ended, and related

notes, are derived from the audited consolidated fi nancial statements, prepared

in accordance with Canadian public sector accounting standards, of Surrey City

Development Corporation as at and for the year ended December 31, 2012.

We expressed an unmodifi ed audit opinion on those consolidated fi nancial statements

in our report dated April 29, 2013. Those consolidated fi nancial statements, and the

summary consolidated fi nancial statements, do not refl ect the eff ects of events that

occurred subsequent to the date of our report on those consolidated fi nancial statements.

The summary consolidated fi nancial statements do not contain all the disclosures required

by Canadian public sector accounting standards applied in the preparation of the audited

consolidated fi nancial statements of Surrey City Development Corporation. Reading the

summary consolidated fi nancial statements, therefore, is not a substitute for reading the

audited consolidated fi nancial statements of Surrey City Development Corporation.

Management’s Responsibility for the Summary Consolidated Financial Statements

Management is responsible for the preparation of the summary consolidated fi nancial

statements in accordance with Canadian public sector accounting standards.

Auditors’ Responsibility

Our responsibility is to express an opinion on the summary consolidated fi nancial

statements based on our procedures, which were conducted in accordance with Canadian

Auditing Standard 810, “Engagements to Report on Summary Financial Statements.”

Opinion

In our opinion, the summary consolidated fi nancial statements derived from the audited

consolidated fi nancial statements of Surrey City Development Corporation as at and for

the year ended December 31, 2012 are a fair summary of those consolidated fi nancial

statements, in accordance with Canadian public sector accounting standards.

Chartered Accountants

June 13, 2013

Burnaby, Canada

KPMG LLP Chartered Accountants

Metrotower II

Suite 2400 – 4720 Kingsway

Burnaby BC V5H 4N2

Telephone (604) 527.3600

Fax (604) 527.3600

www.kpmg.ca

Report of the Independent Auditors on the Summary Financial Statements

Summarized Financials SCDC 2012 Annual Report 23

SCDC

Summarized Consolidated Statement of Financial Position

As at December 31, 2012, with comparative fi gures for 2011

See accompanying notes for summarized fi nancial statements.

2012 2011

Financial Assets Cash $ 2,029,541 $ 240,962

Accounts receivable 1,897,520 179

Properties available-for-sale 14,788,247 8,710,587

Performance bonds and deposits 262,076 388,971

Due from government and other government organizations 1,781,436 781,567

Due from joint venture partners 8,680,738 9,598,631

29,439,558 19,720,897

Liabilities Accounts payable and accrued liabilities 3,551,633 717,780

Loans payable 32,878,191 –

Deposits payable to income property tenants 1,146,464 65,435

Deferred gains 4,765,147 3,000

Due to joint venture partners 4,939,486 9,622,471

Due to City of Surrey 39,828,691 24,928,637

87,109,612 35,337,323

Net Debt (57,670,054) (15,616,426)

Non-Financial

Assets

Tangible capital assets 109,856,478 51,083,064

Prepaid expenses 61,835 38,544

109,918,313 51,121,608

Accumulated

Surplus

Share capital, common shares 100 100

Share capital, preferred shares 47,936,338 36,127,501

Accumulated operating defi cit, opening (622,419) (2,848,063)

Annual surplus current year 4,934,240 2,225,644

$ 52,248,259 $ 35,505,182


SCDC

Summarized Consolidated Statement of Operations

Year ended December 31, 2012, with comparative fi gures for 2011

2012 2011

Revenues Property sales income, net $ 6,099,188 $ 3,038,826

Property lease income (loss), net (70,987) (117,204)

Professional consulting fees and other income 279,901 339,857

6,308,102 3,261,479

Operating Expenses Administration 261,949 103,584

External consulting services 395,347 331,467

Income properties 74,128 62,150

Real estate development and sales 642,438 538,634

1,373,862 1,035,835

Annual surplus 4,934,240 2,225,644

Accumulated operating defi cit, beginning of year (622,419) (2,848,063)

Accumulated operating surplus (defi cit), end of year $ 4,311,821 $ (622,419)


SCDC

Summarized Consolidated Statement of Changes in Net Debt


2012 2011

Annual surplus $ 4,934,240 $ 2,225,644

Acquisition of tangible capital assets (93,315,488) (56,387,086)

Disposal of tangible capital assets 1,254,667 5,428,696

Amortization of tangible capital assets 296,423 123,457

Capitalization of wages (436,148) (400,482)

(92,200,546) (51,235,415)

Transfer to due from City of Surrey 36,092 –

Transfer to assets held-for-sale 33,391,040 8,710,587

Change in prepaid assets (23,291) (3,603)

33,403,841 8,706,984

Redemption of preferred shares (13,303,163) –

Issuance of preferred shares 25,112,000 36,127,501

11,808,837 36,127,501

Decrease (increase) in net debt (42,053,628) (4,175,286)

Net debt, beginning of year (15,616,426) (11,441,140)

Net debt, end of year $ (57,670,054) $ (15,616,426)


SCDC

Summarized Consolidated Statement of Cash Flows


2012 2011

Cash Provided By (Used In):

Operations Annual surplus $ 4,934,240 $ 2,225,644

Items not involving cash:

Amortization 296,423 123,457

Change in non-cash working capital:

Increase in accounts receivable (1,897,341) 26,082

Increase in performance bonds and deposits 126,895 –

Increase in due from government and other government

organizations

(963,777) (503,153)

Increase in accounts payable and accrued liabilities 2,833,853 (323,273)

Increase in deposits payable to income property tenants 1,081,029 40,760

Increase in prepaid expenses (23,291) (3,603)

Disposal of properties available for sale 27,393,453 4,006,696

Net change in cash from operating activities 33,781,484 5,592,610

Investing Purchase of tangible capital assets (14,608,027) (3,472,402)

Financing Issuance of debt due to City of Surrey – 6,078,664

Issuance of loans payable 3,256,143 –

Repayment of debt due to City of Surrey (7,278,656) (8,027,155)

Repayment on loans payable (59,202) –

Redemption of preferred shares (13,303,163) –

Net change in cash from fi nancing activities (17,384,878) (1,948,491)

Net change in cash 1,788,579 171,717

Cash, beginning of year 240,962 69,245

Cash, end of year $ 2,029,541 $ 240,962


Note 1 to the Summarized Consolidated Financial Statements

The summarized consolidated fi nancial statements are derived

from the audited complete consolidated fi nancial statements and

notes, prepared in accordance with Canadian PSAS established

by the Canadian Public Sector Accounting Board, as at and for

the year ended December 31, 2012. Those audited complete

fi nancial statements were approved by the Board of Directors on

April 12, 2013, and are available on request from the Corporation.

The summarized consolidated fi nancial statements were prepared

by management based on the following criteria:

To fairly summarize fi nancial information, extracted from the

audited complete fi nancial statements, for inclusion in the 2012

Annual Report, which provides the public with relevant information

on the fi nancial performance of SCDC.

SCDC

Supplementary Cash Flow Information

Non-cash

transactions

Land transfers in exchange for preferred shares $ 25,112,000 $ 36,127,501

Land and income property transfers in exchange for debt with the City 11,306,545 14,535,259

Transfer of lands to reduce amounts owing to joint venture partners 1,254,667 1,422,000

Transfer of development costs recoverable from tangible capital assets – 1,230,406

Development cost charges fi nanced by City of Surrey 10,872,165 –

Acquisition of income properties fi nanced by external mortgages 29,681,250 –

Assets acquired from joint venture partners 917,893 –


SCDC

1870 – 13450 102 Avenue

Surrey, BC

V3T 5X3

T: 604 581 8787

F: 604 582 9379

www.scdc.ca

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Building Block - SCDC · at the University of British Columbia, and the HR Fullerton Professor of...

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