2018 Annual Report

City of Chilliwack 83 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements (continued) Year ended December 31, 2018 3. Financing lease receivable: The Corporation has entered into a series of agreements with the RCMP including a Ground Lease, Lease and Firing Range Development Agreement all related to the development and construction of the RCMP Firing Range at Canada Education Park. As a result of these agreements, the Corporation was responsible for the development of the project including the construction of the Firing Range on behalf of the RCMP. The construction of the project was completed in 2015. As part of the agreements, any costs of construction in excess of an agreed amount was to be carried by the Corporation and financed over five years commencing January 1, 2016. The resulting financing lease receivable is being repaid in monthly installments of $47,306 including interest at 3.5% and is secured by a lease agreement over the RCMP Firing Range. 4. Property under development: 2018 2017 Canada Education Park: Land $ 1,353,755 $ 1,353,755 Roads, water, and sewer 1,709,289 1,709,289 Other improvements 195,748 195,748 3,258,792 3,258,792 Downtown Redevelopment: Land 627,068 2,497,173 Less provision for impairment (203,900) (203,900) 423,168 2,293,273 $ 3,681,960 $ 5,552,065 Included in property under development is $321,421 (2017 - $321,421) in capitalized interest. 7