The developers of Stoney Creek Ranch
have selected the beautiful Stoney Creek site gated community
residences on land owned by the Crown held in reserve for the Tseachten
Band. The Tzeachten Band endorsed by popular vote the plan
to give up their rights to the land to the Crown for development
as a residential community.
The lease was signed between Stoney Creek Ranch developers and the
Federal Government of Canada, the two parties exclusively involved
in the head lease. The developers have pre-paid the lease for the
entire term, thereby eliminating the requirement of any further approvals
or involvement from the Tzeachten Band for the duration of the lease,
which has a current term until 2096.
Stoney Creek Ranch homeowners pay a monthly sublease of approximately
$180. In accordance with the Consumer Price Index (CPI) or
1%, the monthly sublease payment will increase each year. For example,
should the CPI show a 1.5 percent increase, homeowners’ lease
payments will increase by $2.70 per month.
The Federal Government, the developer and the Tzeachten Band will
be prohibited from changing the lease in any way, shape or form without
the full permission of the homeowner.
Frequently Asked Questions
- Are there other communities under a similar lease
arrangement?
Yes. In fact, land leases akin to this are
commonplace throughout Canada, Europe the southwestern United
States. In British Columbia, North Vancouver’s Burrard Indian Band and Westbank First Nation
have completed a variety of successful housing projects on band land.
In Chilliwack, Promontory Lake Estates is popular retirement
housing development, now up to 10 years old, under a similar arrangement.
Located on the Tzeachten Reserve, these homes have sold rapidly,
with prices increasing up to 20 percent in the past year.
- How will this lease affect the re-sale value of homes
like those at Stoney Creek Ranch?
This question is best answered by returning to the example of Promontory
Lake Estates. With 52 years remaining on its head lease, sales of
these homes normally occur within a month or two of being on the
market, at prices dramatically higher than those initially paid.
- The Benefits of Leasing.
Some homeowners invest all their equity into their homes. For residences
located on leased land, this is not a requirement. That means money
ordinarily consumed by higher financing costs is available for investment,
enjoyment or other priorities(That new R.V etc.)
Should you opt to invest that equity in a retirement investment
fund you could cover all monthly lease expenses and more as well
as substantially increasing your capital.
Whatever you do with that extra capital, the key is to recognize
that a lease agreement saves you money.
- Can Stoney Creek Ranch be reached via a public road?
Yes,
it is accessible by from Promontory Road via Chester Drive, and
from Chilliwack River Road. Both Roads are owned and maintained
by the City of Chilliwack.
- Who are the service providers to Stoney Creek Ranch?
BC Hydro, TELUS and Shaw Cable are the utility service providers,
while the City of Chilliwack provides water, sewer, police, fire,
ambulance and other services.
- Can I receive financing from a financial institution
to purchase a home at Stoney Creek Ranch?Absolutely.
A variety of financial institutions have created plans to assist
home buyers with financing.
- May I receive legal advice prior to purchasing a
home at Stoney Creek Ranch?
Yes. Your offer will
be subject to your lawyer reviewing and approving the documentation. A
selection of law firms experienced in legal agreements associated
with Stoney Creek Ranch residences, can
offer independent legal advice on this matter should you request
it.
Disclaimer: Should a discrepancy arise between the above information
and the head lease or sublease, the latter shall take priority.
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