Notes to Financial Statements – March 31, 2003
9. Joint Venture (p.145)
The Corporation contributed 179 acres of land, at appraised value, to a joint venture with Ladco Company Limited on May 11, 1989. The appraised value of the land at that time, adjusted for subsequent sales, was $2,336,065 (2002 - $2,503,706) and is included in joint venture land in note 10. The joint venture activities include the servicing, development and sale of approximately 476 acres of land in the City of Winnipeg, Manitoba. In accordance with the terms of the agreement, the Corporation has provided loan guarantees for the purpose of the joint venture development in an amount not to exceed $2,400,000 (note 24).
The following is a summary of the Corporation’s pro rata share of the assets, liabilities, revenues of the Ladco Company Limited joint venture.
2003 2002
Current Assets:
Cash and short term investments $ 189,762 $529,819
Accounts receivable from land sales 1,049,522 1,163,324
1,239,284 1,693,143
Long term assets
Development in progress 1,716,523 748,046
Total Assets $2,955,807 $2,441,189
Current liabilities:
Accounts payable from accrued liabilities 535,269 518,645
Net Assets $2,420,538 $1,922,544
Sales of land 1,482,399 $1,354,793
Cost of land sales 860,438 1,038,909
Gross margin 621,961 315,884
Expenses:
Interest on bank indebtedness 3,904 4,754
General 63,388 76,375
Other 56,675 44,560
Total expenses 123,967 125,689
Net income for the year $497,994 $190,195
10. LAND (p.147)
2003 2002
Under development $146,000 $156,710
Future development or sale 7,729,733 7,823,428
Leased to co-operatives 1,734,392 1,734,392
Joint venture 2,336,065 2,503,706
Land $11,946,190 $12,218,236
24. Guarantees (p.155)
The Corporation has guaranteed the repayment of mortgages and has issued letters of credit which guarantee the terms and conditions of land development agreements and construction contracts. The outstanding guarantees are as follows:
2003 2002
Joint Venture Investment Guarantee (note 9) $2,400,000 $2,400,000
Mobile Home Loan Guarantee Program 1,133,585 1,531,449
Rural Mortgage Lending Program - 3,882
Other mortgage guarantees 807,166 807,166
Total guarantees $4,340,751 $4,742,497
A guarantee fee of 2˝ % is charged for each mortgage under the Mobile Home Loan Guarantee Program. The assets of the Mobile Home Loan Guarantee Program as at March 31, 2003 are $789,993 (2002 - $770,355) and are included in cash (note 4). The trust fund liability is included in accounts payable.