Move follows controversial hotel purchase from Hells Angels member
Kim Bolan
Sun
The city of Vancouver paid almost three times the assessed value for the Drake Hotel at 606 Powell St. Photograph by : Ian Lindsay, Vancouver Sun
VANCOUVER – Vancouver Mayor Sam Sullivan has ordered a review of how real estate deals are done after the controversial purchase by the city of the Drake Hotel from a prominent Hells Angel member for $3.2 million.
Sullivan said Friday he’s asked city manager Judy Rogers to look at procurement practices after learning of the link between the hotel, which is to converted to social housing, and John Bryce, the longtime president of the East End chapter of the Hells Angels.
“I met with the city manager a little earlier today and have asked her to ensure that we do review our procurement practices,” Sullivan said in an interview. “It is a very difficult issue when you are dealing with so many conflicting values or competing values.”
He said it may be deemed necessary in future to check with Vancouver police before business deals are entered into by the city — at least in some cases.
Law enforcement agencies call the Hells Angels the biggest organized crime group in B.C. and Bryce has been a prominent member of the club for years.
Sullivan confirmed city staff were aware Bryce is the only director of the numbered company that owned the Drake. But he and other councillors said politicians at city hall were unaware of the biker connection until it was reported in The Vancouver Sun Friday.
Several councillors told The Sun they think the optics of the deal are troubling.
Sullivan said he understands the concern, but he also feels conflicted about the purchase.
“I am torn on this particular issue. My No. 1 priority is dealing with homelessness and the purchase of the Drake will provide 24 people with homes. We have also shut down a bar in the Downtown Eastside and discontinued the exotic dancing part of that business,” Sullivan said.
Vancouver Const. Howard Chow said the department’s Outlaw Motorcycle Gang unit is certainly aware of the Drake’s links to the province’s most notorious biker club.
“We were aware of the Drake and the Hells Angels involvement with this place — in particular John Bryce as president of the East End chapter,” Chow said, adding police specialists are available to brief city staff whenever they’re called upon to do so.
Insp. Gary Shinkaruk, who heads the RCMP’s biker unit, said his section called Vancouver officials Friday to see if they need any background on the Hells Angels, its East End chapter or Bryce.
“I don’t think taxpayers want their tax dollars going into organized crime groups,” Shinkaruk said, adding police obviously support the creation of low-income housing.
But he said the purchase of the Drake “is concerning to police.”
“Our role is to provide city officials with information so they can make an informed decision,” Shinkaruk said.
Sullivan announced Thursday the city had paid almost three times the assessed value for the hotel at 606 Powell St.
Assessment, land title and company records show the hotel was owned by a numbered company, 634321 BC Ltd., whose president, secretary and sole director is Bryce, who police say remains an influential figure in the Angels.
In April, Bryce’s son, Jonathan Bryce, was sentenced to six years in prison for cocaine trafficking and extortion.
Company records for 634321 BC Ltd. list Bryce’s registered address as 3270 Parker Ave. in Burnaby, which is the location of his Hi-Way Choppers motorcycle shop.
Councillors from both Vision Vancouver and Sullivan’s Non-Partisan Association expressed concern after learning of the Hells Angels link.
“It does raise some interesting issues,” Coun. Suzanne Anton said, adding council needs to discuss the issue. “Certainly, the optics are not very good.”
Coun. David Cadman said he has concerns about the biker link, but also about the fact the building was bought for much more than the assessed value of $1.14 million.
Coun. Kim Capri said city staff never check to see who the directors are of a numbered company when purchasing property because it is considered irrelevant, but Tim Stevenson, also a city councillor, said it should be relevant because the public is concerned about the issue.
“Obviously, we’ve been getting some calls,” Stevenson said.
Coun. George Chow said anytime the city does business with someone “it gives people the impression that we are legitimizing this person’s property, his behaviour and his connections.”
© The Vancouver Sun 2007