City council has approved a conditional sales offer to sell a "neighbourhood Commercial" lot at 4979 Southlands Dr. The land, which also faces S. Boundary Road, would be purchased for $758,000 by DAAS Developments of Medicine Hat, in a deal that has a closing date in the summer of 2020.--NEWS PHOTO COLLIN GALLANT
cgallant@medicinehatnews.com@CollinGallant
A neighbourhood commercial plaza is planned for a long-vacant parcel of land in Southlands after council agreed to a conditional sale offer last week.
The lot, which faces both S. Boundary Road and Southlands Drive, is the subject of initial plans by DAAS Developments to construct buildings for professional offices and retail space that would be sold as condominium.
“There are a lot of doctors and professionals who are looking for a great spot,” said Dave Reinheller, president of DAAS. “There are a lot of rooftops (population living) nearby and it’s got great exposure.”
On Nov. 18, council unanimously passed a motion to accept an offer for the land at 4979 Southlands Dr. The price, $757,600, sits 10 per cent below asking, thereby requiring council’s OK.
Conditions on the deal, which would close on June 30, 2020, include the need for DAAS to meet an April deadline for development permit. A “neighbourhood commercial” development must proceed within 18 months of the sale closing, or the city could exercise a standard buyback option at a 10 per cent discount.
Reinheller said the market demand and pre-sales of units will ultimately decide whether the project goes ahead.
He sees the ability to own, rather than lease, as what sets the project apart.
DAAS is most recently known for its offerings in the residential sphere, including premium homebuilding and subdivisions and bareland condominiums, such as Chartwell Gardens.
The Southlands lot was stubbornly vacant over the years as the community built up around it, and major regional commercial growth took place in the general area.
Mayor Ted Clugston told reporters after the sale more development is good news.
“Many of the lots were vacant for years and now they’re selling,” he said.
“I’m surprised others have sold when that one’s on the main drag.”
For the city, the sale represents a continuing process to build out the community south of Strachan Road and east of S. Boundary.
Administrators have said that few remaining single house lots have been picked up over the years, and only several multi-family lots remain.
In terms of commercial land in the city development portfolio, it was one of the last substantial parcels of serviced, ready-to-build land.
The department recently announced pricing on the former Maple Avenue fire hall, and has a commercial parcel in Ranchlands remaining, but plans to open more commercial space near the entrance to the Medicine Hat Regional Airport in the near term.
