The city has opted to spend $500,000 to help determine the best course of action for developing land in the city's north end along Broadway Avenue, some of which is seen here in this June 2018 file photo.--NEWS FILE PHOTO
cgallant@medicinehatnews.com@CollinGallant
City Hall will spend half a million dollars determining how to best develop three-quarter sections of land in the city’s north end for a potential industrial park.
The city-owned land, north of the Box Springs Business Park, was annexed into the city in the 1980s as a potential lure to industrial interests.
More recently administrators have said they need a better idea of how, and how fast, the land could be serviced if substantial opportunity presents itself.
Administrators won’t officially say one way or the other if that is underway, though Mayor Ted Clugston has hinted that some level of talks are underway with an unnamed interest.
“We’re always hunting and capital is always hunting for good opportunities,” said Bob Nicolay, the city’s chief administrative officer. “We certainly want to make it as ready for investment as we can without putting in a whole lot of money.”
On Monday, council approved a $510,000 contract for Stantec to draw up functional servicing plans, study area drainage, and pre-engineer potential utility and transportation networks. The plan is due for council approval in the fall of 2021.
Two years ago, council approved a land office project to study developing the southernmost 80 acres of the land, which sits north of Broadway Avenue.
It has seen nearby utility expansion in the past three years after the announcement and construction of Hut 8 data processing and Aurora Sun greenhouse.
Officials have said they didn’t want to be flat-footed if another large industrial customer presented themselves.
“If there isn’t any interest it wouldn’t be built,” said Clugston of the buildout, budgeted to cost $14 million.
“It’s a major expenditure, and even engineering at a half-million is a big number.”
Nicolay said offering serviced industrial land is difficult because sales can be years after capital is sunk into development. As well, industrial subdivisions with in-place utility layouts may not suit potential buyers’ requirements.
The work will be done over the next year by Stantec to update broad planning documents for the area, called an area structure plan.
That, which includes the privately built Box Springs Business Park, was last updated to allow the Event Centre construction, and now sections including current hay fields to the north, needs updating.
Six companies submitted bids to perform the study, though values of bids were not attached.
Tax penalty back for study
A plan to double tax default penalties next year will go back to committee after council signalled it would shoot down the change, but may favour phasing in an increase.
Four of eight council members present spoke against raising the fee from 7 to 14 per cent.
Administrators say the rate that is half the provincial average includes an “invisible subsidy” paid for by tax payers and could provide new revenue in a budget crunch.
A tense exchange between Mayor Ted Clugston (against the increase) and Coun. Darren Hirsch, was broken up when finance committee chair Coun. Robert Dumanowski offered to take back the item for further study.
