Vancouver British Columbia - The heated battle over the Arbutus Corridor has taken another turn after CP took out a full-page ad in The Province today.
 
The ad is titled "Clarity and Context."
 
There was a loud public outcry this summer after CP sent in bulldozers to rip apart community gardens along the corridor.
 
CP says an independent third-party appraisal valued the Arbutus Corridor at more than $400 million.
 
The City of Vancouver has offered what it says is "fair market value" but it was rejected by CP.
 
CP says it would like to sell the land, but if an agreement isn't reached, they will look at restoring rail service.
 
"CP management has a responsibility to its shareholders to generate a return on its assets. Simply put, we must get fair value for our property or put it to use. The new CP is not a company that will let this corridor lay dormant while discussions with the city drag on for another decade. If there is no agreement, we will use it for rail operations, and expect to have the rail line up to operating standards later this fall," reads part of the statement from CP CEO Hunter Harrison.
 
Harrison also claims the city has rejected proposals at no cost to the taxpayer.
 
One of which is a land swap that would see a number of parcels of unused city land traded for the corridor.
 
CP says it's flexible in its approach, but if no agreement is reached, rail operations will begin later this fall.

Peter Meiszner.
 

The text of the advertisement follows below:

CLARITY AND CONTEXT

On CP's discussions with the City of Vancouver over the Arbutus Corridor

Much has been written and reported in recent weeks on the future of the Arbutus corridor, an 11 km rail line owned by CP that runs from False Creek to the Fraser River in Vancouver, and is the subject of ongoing discussions between CP and the city.

Many of those reports have been contradictory, and, at times, inflammatory. I would like to provide the context and clarity necessary for residents, and all stakeholders, to fully understand the issue.

The corridor, zoned by the city expressly for transportation, is the property of CP and has fallen into disuse over the past decade as the company and the City of Vancouver have sought to come to an agreement for its sale or disposition. During that time, CP has put forth a variety of proposals, some of which would involve no cost to the citizens of Vancouver, including a plan that would see small portions of the corridor re-zoned for development by CP with the remainder donated to the city for the recreation and enjoyment of its citizens.

This proposal was part of a Visioning Process undertaken in 2006 with the direct involvement - and endorsement - of community groups that represent the residents along the corridor.

A land swap was another option tabled by CP, which would see a number of parcels of unused City land traded for the corridor.

These proposals, and others, have been rejected.

At the heart of the issue is the value of the corridor. Based on independent third-party appraisals using the value of adjoining lands - the standard method for assessing this type of rail corridor - the Arbutus corridor has been valued at more than $400 million. As this was done a number of years ago, the value is significantly higher today. Recognizing the importance of this property to the citizens of Vancouver, CP has been prepared to accept far less in order to reach an agreement. The City of Vancouver has, in turn, offered only a fraction of that discounted price.

We were disappointed last week to be asked back to the table only to find the city not prepared to move reasonably on its position. We fear that due to internal city politics, the council is not able to reach a fair and equitable settlement. CP management has a responsibility to its shareholders to generate a return on its assets. Simply put, we must get fair value for our property or put it to use.

The new CP is not a company that will let this corridor lay dormant while discussions with the city drag on for another decade. If there is no agreement we will use it for rail operations, and expect to have the rail line up to operating standards later this fall.

Contrary to many reports, CP has been and continues to be flexible in its approach. The company stands ready to sell this asset, but at a fair price, or to find a creative solution that satisfies all stakeholders at no cost to the citizens of Vancouver.

E. Hunter Harrison
Chief Executive Officer
Canadian Pacific