Annual Report 2014

Notes to the Consolidated Financial Statements

For the year ended December 31, 2014

[tabular amounts in thousands of dollars]

City of Surrey

20 Surrey City Development Corporation

On April 24, 2007 the City of Surrey incorporated a Development Corporation with broad powers to

advance the commercial, industrial, institutional and residential development of the City. The City is the

sole shareholder of the Development Corporation and has provided financing to sustain operations and the

development. As a controlled other government organization, the Corporation’s financial information is fully

consolidated within the City’s financial statements.

As at December 31, 2014, the Surrey City Development Corporation (“SCDC”) has entered into Government

Partnerships as follows:

a) The Grove Limited Partnership

The Grove Limited Partnership (“Grove”) is a partnership for the development of 141 three-level

townhomes located in the East Clayton area of Surrey. SCDC mutually contributed a beneficial

interest in lands valued at $2,844,000 and cash consideration of $1,341,597, for a 50% interest in the

Grove. The proportionate amounts included in the consolidated financial statements at December 31,

2014 are as follows:

Assets

2,665

Liabilities

(3,503)

Tangible capital assets

5,447

Prepaids

Accumulated surplus

4,609

b) Croydon Drive Limited Partnership

Croydon Drive Limited Partnership (“Croydon”) is a partnership for the development of two

office buildings. The SCDC is an equal partner in Croydon and has and will provide equal capital

contributions to fund the operations of Croydon in the form of land, financial and intellectual capital.

Croydon’s financial results are proportionately consolidated with SCDC based upon the 50% share of

total contributions. The proportionate amounts included in the financial statements at December 31,