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The Dunsmuir hotel site: A case study in property assessment
In a surprising turn of events, the former Dunsmuir hotel site in Vancouver has seen its assessed value nearly triple for 2025, thanks to a rare third-party appeal initiated by local planning consultant Michael Geller.
This case not only highlights the importance of accurate property assessments but also raises questions about the fairness of the taxation system in British Columbia.
Understanding the appeal process
Geller’s journey began when he noticed a significant discrepancy in the assessed value of the Dunsmuir property.
Despite its dilapidated state and the recent demolition of the 115-year-old building, the land was undervalued. Geller felt compelled to act, believing that it was unjust for a property owner to benefit from lower taxes while neglecting a building to the point of collapse.
His appeal led to a staggering 193% increase in the assessed value, from $6,476,000 to $18,965,000, resulting in a tax hike from around $70,000 to over $200,000.
The broader implications for Vancouver’s property market
This case is not just about one property; it reflects a larger issue of undervalued commercial properties across British Columbia. Retired BC Assessment appraiser Derek Holloway emphasized that when properties are not accurately assessed, the tax burden shifts to other taxpayers.
With property taxes in Vancouver rising above inflation—averaging a 7% increase annually—there is a pressing need for reform in how commercial properties are valued. Holloway argues that the current Assessment Act lacks enforcement mechanisms, allowing property owners to evade proper assessments without consequence.
Future of property assessments in British Columbia
As Holborn Properties, the owner of the Dunsmuir site, considers its options regarding the reassessment, the implications of this case resonate throughout the community. The Union of BC Municipalities has proposed motions to address the under-assessment of industrial and commercial properties, but past efforts have often stalled. The Dunsmuir case serves as a crucial reminder of the need for transparency and accountability in property assessments, ensuring that all property owners contribute fairly to the tax system.
A call to action for young citizens
This situation presents an opportunity for young adults and Gen-Z to engage with local governance and advocate for fair taxation practices. By understanding the complexities of property assessments and their impact on community resources, young citizens can play a pivotal role in shaping a more equitable future. Whether through attending city council meetings, participating in local advocacy groups, or simply staying informed, the next generation has the power to influence change.
