By COLLIN GALLANT on February 24, 2022.
Two major land sales were approved by city council on Tuesday, including a parcel set aside for a new condo or apartment building in Ranchlands.
The other comprises the last large block of contiguous residential lots in Southlands community, and a third, smaller transaction would see land leased near the city’s airport sold to a developer.
The deal was presented to the city’s administrative committee Feb. 16 and since they would see property move at much less than listed price, required the approval of council.
A four-acre parcel at 48 Ranchlands Blvd. is one of the few remaining ready-for-market multi-family parcels in the city’s land development portfolio.
It would be sold to “BPL Developments” for $1.3 million – about $271,000 less than a five-year-old appraisal that informed the list price.
Similarly, a row of 13 lots in Southlands shows a grand total list price of $1.3-million, but the offer from “Grand Four Developments” is for $1.04 million for all.
That offer is 22 per cent less than list price, but the sale was recommended as they are the last big undeveloped area in the community that city department brought to market in 2006.
“There are people who, rightly, ask why we would provide discount on their land,” said Coun. Robert Dumanowski, who said the lots had sat unsold for 16 years and agreed the closing price was likely closer to market value.
Mayor Linnsie Clark reminded council of a 2021 proposal by Invest Medicine Hat to survey the remaining city inventory for market adjustments.
“We will this year be going through our inventory this year and making sure market value is up to date,” she said.
The Southlands lots but back on to S. Boundary Road and a commercial zone, and have for years been a topic of conversation at the land office.
During the last council term, there was discussion of redrawing the hard-to-sell lots to enlarge them, but the cost was considered too great considering in-place service lines.
The lots range in list price from $77,500 to $160,000, making a grand total of $1.33 million. Invest officials say the resulting home construction on the lots could total $5 million.
The multi-family lot in Ranchlands will be sold to BPL Developments, pending a final contract and closing conditions, and could see major construction on the land that is zoned for a maximum of 165-unit apartment or condo block.
A third land sale would see land formerly leased land near the SW Light Industrial Area sold to new developers.
The 1.5-acre site at 1752 10th St. was previously a used car lot and was subject to long-term lease up to 2020 at $7,145 for that year. The sales price would be $120,000, according to background provided, and would likely be combined with an adjacent lot by the new owner.