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THE VOICE OF NORTH AND WEST VANCOUVER

THE PURCHASE of North Vancouver's ailing
Bel-Aire Shipyard Ltd. by Pinecorp Research and
Development Corporation was achieved through a

shuffle of tax losses and credits, the News has

learned...

City makes a splash: 4

Pinecorp took control of
Bel-Aire in September, 1985
in order to acquire cash by

exchanging tax write-offs for
tax money owed, a source
wishing to remain
anonymous has confirmed.
Bel-Aire owed about $3
million in federal and pro-

“the company

IF YOU'RE feeling the urge to kick off your shuss,
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News’ Assignment: Hawaii contest. You could win
a trip for two with seven nights of free accom-
modation. Just fill out an application at any of the
63 participating North Shore businesses listed in
today’s paper on page 37. Contest closes Feb. 28,

draw date is March 5.

vincial taxes on the con-
struction of the Joha P. Tul-
ly, a 69-metre, 1,600-ton
hydrographic research vessel
built for the federal
Department of Fisheries and
Oceans.

LOSSES

Meanwhile, Pinecorp had
acquired a bankrupt Victoria
real estate holding company
for a reported $300, which
had losses totalling close to
$3.2 million.

The
research and development
company, therefore, had
close to $3 million in income
tax write-offs it could ex-
change for the Bel-Aire cash
in the bank set aside to pay
for taxes owed.

Under terms of the 1985
federal budget, tax iosses
can be shared between com-
panies that have merged if
the business of the company
with the incurred losses is
carried on.

Pinecorp' originally pur-
chased the shipyard to
develop a new vessel propul-
sion system, according to
earlier statements from a
corporation spokesman.

Former Bel-Aire. owner
George Forbes said Tuesday,
he was very disappointed
with the situation at the
North Vancouver shipyard.

Agreement to sell to.

Pinecorp he said hed been
based on the corporation’s
claim that it had plenty of
projects lined up: ‘*We left
in excellent
shape. 1 don't know where
they’ve gone wrong.”’

In November, following
two work stoppages on the
Pinecorp Research and
Development building, 267
West Esplanade, contractors
working on the site were
paid a $2.1 million lump
sum as a down payment on
funds outstanding on the
construction of that
building.

UNFINISHED

Scheduled to be completed
at the end of October 1985,
the $20 million, 48,000
square-foot building remains
unfinished.

Stan Milacek, general
manager of the building’s
contractor, Gama Construc-
tion Ltd., refuses to speak to
the News.

Pinecorp officials have

North Vancouver.

been unavailable ‘for com-
ment since a Nov. 13 News
story chronicling the “deal-
ings of the Scientific
Research Tax Credit opera-
tion.

Pinecorp was launched in
1984 on $25 million acquired
through federal government

SRTCs.
The SRTC program has

since cost the Canadian tax-
payer an estimated: $3.5
billion in lost tax revenues.

John Fitzpatrick, presi-
dent of the Marine Workers
and Boilermakers Industrial
Union, said Tuesday his at-
tempts to contact Pinecorp
officials have been. unsuc-
cessful since he first learned
of Bel-Aire’s imminent
closure Jan. 17. :

Pinecorp’s original presi-
dent, Jack Marier, said Fri-
day that he !eft the corpora-
tion in late October.

He would not explain why
he had resigned, but szid
legal action. against the
company over his resigna-
tion was a possibility.

The corporation has since
moved out of its North Van-
couver offices at 145 Chad-
wicke Court and con-
solidated its operation on the
19h floor of 999 West
Hastings Street, Vancouver.

BEHIND ON RENT

A spokesman for Code
Properties Ltd., managers of
the Lonsdale Quay building,
said Pinecorp had moved
because of ‘‘non-compliance
with its lease document.’’

The spokesman, who
preferred to remain
anonymous, would not say
what the nature of that non-
compliance was, but con-
ceded that the corporation
was behind oit its rent.

As to how much, ‘We
cannot release any details
pending further litigation in
the matter.”’

Pinecorp’s deal to pur-
chase the Harvest Eating
House, 180 West Esplanade,
has fallen through since an
agreement to purchase was
signed in September, 1985.
A court writ by the restau-
rant’s former owners has
been served on the research
and development corpora-
tion,

The former restaurant has
languished as an abandoned
building for the past four
months,