Real Estate News


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Aquifer Flood Causing Millions of Damage in Southwest Marine Neighborhood

Planning to purchase a home in the Southwest Marine neighborhood? If you do, make sure it’s far away from 7084 Beechwood – the site of a massive aquifer flood.

In September 2015, the owner of 7084 Beechwood, Feng Lin Liu, hired a contractor to build a mansion on his $3-million vacant lot. The contractor then hired an inexperienced team of drillers to install a geothermal heating system. Needless to say, things took a bad turn when the drillers accidentally pierced an aquifer – an accident that has caused more than 2 million litres of water to spill out. This sparked an evacuation order, and there are fears that a sinkhole could swallow about 12 nearby homes.

Since then, the drillers have fled Canada, leaving Liu liable for the damages.

By midsummer, the city hopes to have solved the issue. Currently, B.C. Groundwater has been contracted to cap the aquifer and stabilize the land that has been damaged by the aquifer breach. However, the cost of this operation is estimated to have a hefty price of $10 million.

Furthermore, a land document analysis by Postmedia News for nearby properties have seen a significant lag in value. The assessed value of 7084 Beechwood has dropped from $3 million in 2016 to $2 million in the 2017; and several homes immediately surrounding the lot have seen an increase of about 6% in value in 2017, which is a large gap from the overall 25% increase for elsewhere in Vancouver.

As of late April, a B.C. Supreme Court order has permitted CIBC (where Liu has defaulted on his $1.75 million loan) to send Liu a notice-of-foreclosure. Though, it is still uncertain as to who will be ultimately liable for the damages, given the fact that the individuals responsible for the accident have been difficult to locate.

Source:
Vancouver Sun
The Province