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.

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.