GROW OPS ARE SOLD AS HOMES

Mould, Damage Don't Stop Buyers

THE relentless demand for real estate in the city has grown into a
buyer's boon for people not worried about taking on a special kind of
fixer-upper.

The recent sale of a Garden City house that was once home to a large
marijuana grow operation shows when it comes to finding a place to
live in the city, if it has four walls and a roof on top, many people
are willing to pay anything.

A year ago, police raided a home at 42 Envoy Crescent and removed
nearly 3,000 growing pot plants worth about $3 million.

The devastation caused by the daily grind of running a drug operation
was evident -- cakes of mould plastered the walls and windows, and the
interior was destroyed by the "work" underway.

In one room, near to where a photo shows one person slept on a bed at
floor level, the carpet and baseboards were thick with black fungus.

The home was listed in "as is" condition at $120,000 -- no prospective
buyer was allowed in to see it before they had agreed to buy it.

The home was clearly identified by realtors as a former grow
operation.

When people did finally step in the door to take a peek, it was with
protective equipment and breathing masks on.

The 2,000-square-foot bungalow sold for $191,000, and 61 people drew
up offers for a house they had only seen through pictures on the
Internet -- most of the images not being coy about the interior condition.

Listing agent Peter Vasko of Sutton Group Realty said he dealt with
more that 1,500 phone calls relating to the sale of the house.

Vasko, who was hired to sell the home by a Toronto-based foreclosure
company, said a dearth of homes in the city means people are willing
to chance anything to get into a house, no matter what shape it's in.

"Most people had no idea what they were getting involved in," Vasko
said of his recent sale.

According to Winnipeg realtor Kimberly Graham, the prevalence of
so-called "fix and flip" TV shows focused on home renovations have
many people thinking they can flip a money pit into a pile of cash.

Graham, who dealt with a person interested in buying the Envoy
Crescent home, said she was shocked at the price it went for.

"I was reeling for about a week -- it's just crazy," she
said.

Graham said former grow ops can be fixed up and made livable again,
but only after an extensive and expensive process of
remediation.

Graham said she didn't know the buyer of the home, but said people who
buy homes in rough shape are typically investors looking to make a
buck.

Insurers, at least those that will consider insuring a former grow
operation, demand that a thorough environmental assessment be done
before thinking about issuing a policy.

Kris Moffatt of Niverville Insurance said he knows of three companies
that may insure one of these homes, but that each has their own
separate criteria for doing so.

Graham said the police listing the addresses of grow op homes on the
Internet provides some assurances to buyers they can find out what
they may be getting into.

Police call the situation one of "buyer beware," and said they've
worked with the Winnipeg Real Estate Board to bring the homes to
people's attention.

Winnipeg police Sgt. Kelly Dennison said during his career, he's
dismantled "a ton" of grow operations.

They are often so toxic, police have to wear special clothing and
equipment such as breathing masks while ripping them apart.

"For the majority of the larger grow ops -- an entire house there for
no other purpose than to grow marijuana, there's substantial damage
done to the house," he said.

"The larger ones -- the state that house is left in, it's not worth
anything," Dennison said.

Grow ops can have real health hazards

What damage does a large grow op typically do to a
home?

* Fungal contamination (mould and mildew from intense
condensation)

* Pesticide and fertilizer contamination

* Increased levels of carbon dioxide and carbon oxide

* Foundation walls often drilled through to accommodate changes to
electrical wiring

Source: American Industrial Hygiene Association and the Winnipeg Police Service