Prince Albert City Council has agreed to sell a parcel of land to developers with Lake Estates on South Hill for $1. The land being sold is marked out by red dashes in a report to city councillors. (City of Prince Albert)

By Charlene Tebbutt

Local housing

City council approves land sale for $1

Feb 26, 2019 | 5:11 PM

City councillors have backed the sale of a parcel of land in the West Hill area of the city for $1, but not before some debate Monday night.

Local councillors approved a request from developers with Lake Estates on South Hill to sell a 29,023.49-square-foot, or .66 acre, parcel of land for just pennies, despite a recommendation from city administration against it. Currently designated as park land, the parcel will be developed to accommodate the development of rental fourplexes in Lake Estates.

In a report to council, administration said the offer was well below fair market value for the property, saying similar land has sold for more.

“Based on the above information, a .66 acre parcel such as this could generate anywhere from $29,023 to $136,410,” the report noted.

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Ward 8 Coun. Ted Zurakowski, in whose ward Lake Estates sits, supported the sale at council’s regular meeting Monday night. Zurakowski said it makes sense to sell the land, adding the sale will also lead to new development, and create jobs and growth in the community.

“If we don’t sell this land to them, nobody else is going to want it,” Zurakowski said. “We should be thanking these developers for putting their money forward to help the city grow.”

Other councillors also supported the sale, saying funds generated through taxes would help offset the low sale price. The administration report said similar developments could bring in $45,000 in municipal taxation alone, not including levies and education taxes.

“This project will generate money,” Ward 6 Coun. Blake Edwards said. “There’s people waiting to go to work in our city.”

Some councillors questioned the sale however, saying serviced lots are already available in other areas of the city. Ward 2 Coun. Terra Lennox-Zepp said it wouldn’t be fiscally responsible to service more land with lots available already, adding the city should also negotiate a fairer price for the property.

“That’s why someone wants to buy it, because it could turn a profit,” Lennox-Zepp said.

Ward 7 Coun. Dennis Nowoselsky agreed.

“I think the developer can still make money and pay a reasonable price,” he said.

But Ward 5 Coun. Dennis Ogrodnick said it’s not up to city council to tell people where to they can build. Ogrodnick said the sale would benefit more than just those who live in the area.

“It’s what’s best for the entire city,” he argued. “This is some of the highest-taxed land in the city, in the long run, it’s going to be a benefit to the city.”

Councillors heard Monday that only four lots were sold in the city in 2018. Mayor Greg Dionne also weighed in on the discussion, saying the city should support any new development, saying it’s embarrassing to have only completed four sales in the previous year.

“We’re not in a slowdown, we’re almost stopped,” Dionne added. “This is a large tax dollar that we’re going to get and we’re getting those taxes forever.”

Chris Knudsen, a partner in the Lake Estates development, was at the council meeting Monday. Knudsen said the parcel of land will be used to develop a series of modern fourplexes, about 40 units, each with its own single attached garage.

“We think it’s an ideal place to have fourplexes there,” Knudsen told paNOW. “We’d like to break ground early summer, mid-summer this year and be available by mid to late summer of 2020.”

Knudsen said developers have already had interest in the new rental properties.

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Charlene.tebbutt@jpbg.ca

On Twitter: @CharleneTebbutt