Local organization makes “cheeky” offer for city-owned land

Kerry Receveur, chair of the organization’s board of directors, said the offer was intended to be cheeky, but questioned why KIN Enterprises can’t get the same deals as other local developers for city-owned land.

“That offer was cheeky, and it was meant to be, but it was to make a point,” _{Kerry Receveur, board chair, KIN Enterprises}

Receveur pointed to the sale of a parcel of land in the Lake Estates on South Hill subdivision that was recently sold back to developers for $1 for the construction of 40 rental units, and a $700,000 cash incentive for the developers of the new Best Western luxury hotel as two examples. He said it’s frustrating that some groups seem to be getting a better deal from the city.

Receveur said KIN has tried to buy the land on 40th Street twice before. The organization put down a deposit on the land and agreed to pay just over $366,000, but was told the price had gone up and the land was now valued at more than $1 million. The organization then made an offer of $600,000 for the property, which was also rejected.

Receveur said the organization wants to move to a more industrialized area, rather than the residential neighbourhood it currently occupies.

“We’ve been attempting to purchase this land since 2012,” Receveur said. “We’re a non-profit, we’re a charity, we deal with people with intellectual disabilities, we are a huge contributor to the economy of Prince Albert … so yes, that offer was cheeky, and it was meant to be, but it was to make a point.”

At a city council executive committee meeting earlier this week, Mayor Greg Dionne said the sale price had gone up once services were put in at the locations.

While the land has been on the block for several years, Dionne said the city has an agreement with Broda Group not to undercut pricing on land owned by either party. Unlike private businesses, KIN Enterprises does not pay taxes, Dionne added.

The land sold back to the developers with Lake Estates on South Hill will also generate about $70,000 in taxes each year for the city, while the incentives for the new luxury hotel will be recovered within the first three years. Both developments will also lead to more jobs in the city, Dionne said.

“As soon as we sell a lot to KIN Enterprises, they are tax exempt,” Dionne said. “If [they] agree to pay taxes on that property, I’ll put my hand up tomorrow and move that we give it to them for a dollar.”

Dionne said the issue isn’t about supporting people with disabilities.

“I am a strong supporter of special needs people, very strong supporter, they and seniors and youth go hand-in-hand, but there’s just so much we can give them,” he said. “In supporting KIN Enterprises, we have done it ten-fold.”

City councillors discussed the idea of a “land swap” with KIN Enterprises earlier this week to allow for the move, but Dionne said he’s not overly fond of the idea due to the amount of work that would be needed to turn the current property on 15^th Avenue East back into residential land.

“Residential, we’re strong,” Dionne said. “Light industrial land, that’s what they want. We are very, very short of developable land.”

City Manager Jim Toye said the city agreed to work with Broda Group at a time when they were also developing lots at the same time.

“We couldn’t undercut the developer, and they couldn’t undercut us,” Toye said. “Of course, the economy’s changed since then and there’s not as many people knocking on our door [and] it hasn’t moved like we thought it would.”

Receveur said the organization may eventually look at a move outside the city into the local rural municipality if it can’t make a deal with the city. KIN Enterprises has operated at the location along 15^th Avenue since 1970, an area that used to be on the outskirts of the city before residential homes were built around it.

“We’re fine where we are. We can stay there for another 20 years,” Receveur said. “But it would make our business run smoother [and] it would improve that residential area by having us move out of there.”

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Charlene.tebbutt@jbpg.ca

On Twitter: @CharleneTebbutt

by Charlene Tebbutt

Local organization makes “cheeky” offer for city-owned land

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