N.L. government defends land sale in St. John's east end after Tories criticize deal

The provincial government is defending a land sale to the Crosbie Group — owned by a prominent St. John's business family — as the PCs accuse the governing Liberals of corruption over a deal involving 32 acres of undeveloped and "landlocked" property in the east end of the capital city.

"This is simply outrageous, and the people of the province deserve answers," PC Leader Tony Wakeham said in a news release issued Thursday afternoon.

The news release headline described the deal as the "latest sign of Liberal corruption."

At the centre of this real estate squabble is a parcel of land off Snow's Lane that was formerly owned by Bernard Parsons, the late grandfather of four Crosbie family siblings: Alex, Rob, Tim and Cynthia.

Rob Crosbie is chairman of the Crosbie Group, a fourth generation family business with deep links to the oil, marine construction, and commercial and residential real estate industries.

The land is part of a larger parcel that was expropriated by the province more than four decades ago for more than $25,000 an acre, but will soon be back in the hands of Parsons' descendants for about $5,500 per acre.

It's not uncommon for the government to sell expropriated land back to the original owner after it's been deemed surplus, according to a spokesperson for the Department of Transportation and Infrastructure.

Land is 'valueless'

In a telephone interview, Tim Crosbie said the land is "valueless" and "undesirable" because it has no access, would be very expensive to develop and half the property is a protected wetland.

He described the criticism of the deal as "blown out of proportion" and said his family would not risk its reputation over a "simple land transaction."

He said the Crosbie Group is purchasing the land because "it has nostalgic value to us as a family."

He said his grandfather's estate was paid a high price for the property in the early 80s because of its proximity to King Williams Estates, an upscale residential area.

Today, however, the land is "deemed landlocked with no access point from Snow's Lane, Logy Bay Road or the Outer Ring Road," the department spokesperson wrote in a statement to CBC News.

The department added that access from the Outer Ring Road "cannot be approved as per Transportation Association of Canada guidelines and Transportation and Infrastructure's Highway Access Policy."

And the property contains 16 acres of protected wetlands that are not eligible for development pursuant to City of St. John's regulations, according to the department. 

Appraisal commissioned in 2018

An appraisal was commissioned in 2018 and determined the market value of the property was $160,000.

The appraisal was adjusted upwards by two per cent each year after that.

In 2019, Rob Crosbie "expressed an interest in re-acquiring the surplus property," the department wrote in a statement to CBC News.

The deal with the Crosbie Group is scheduled to close in May, with a purchase price of $176,000, or roughly $5,500 per acre.

Critics are questioning why the land sold for such a price, considering that building lots in the area sell for much higher prices.

"Thirty-two acres of Crown land were given away in a fire sale for just $176,000," said Wakeham.

"A single building lot on Snow's Lane has a market price averaged at $180,000. This is the Furey Liberals being fast and loose with taxpayers' land and cash with no accountability whatsoever."

In 1982, the provincial government expropriated 50.28 acres of land in the east end of St. John's from the estate of Bernard Parsons for an average of $25,178 per acre, or roughly $1.26 million.

The government required the land in order to install the St. John's northeast trunk sewer line, as well as future construction of the Outer Ring Road, according to background information provided by the department.

The 32 acres being sold to the Crosbie Group is part of the original 50 acres, and was deemed surplus by the provincial government.

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While not required under the Expropriation Act, the department spokesperson said "it has been a practice to sell surplus property back to the original landowner or their descendants if not required for government purposes."

Negotiations for a purchase and sale agreement have been ongoing since August 2023, with an environmental report, easements and a land survey completed.

The Expropriation Act requires the sale of expropriated land to be authorized by the Lieutenant-Governor in Council, which is why an Order in Council was issued late last year.

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