The former Medicine Hat food bank building at 532 S. Railway St. is subject to a conditional sale between the city's real estate office and an unnamed buyer proposing it become a "house of worship."--News File Photo
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The former food bank building on S. Railway Street could be sold for $172,000 to an unnamed purchaser after two other offers fell through during the past 18 months.
In late 2023, council approved reducing the price in half to $250,000 on the building it acquired five years ago, but and officials presented a potential sale on Monday as representing updated value on the market and a way to unload the difficult-to-sell property.
According to a staff brief, the unnamed buyer is the final of three bids on the building that appraisers say involves several additions, a warehouse and has limited appeal in the mixed-use real estate market.
“It’s an exceptionally unique property,” said city real estate manager Randi Buchner. “The cost and willingness to go ahead with (needed) improvements were a barrier to sales.”
Staff briefing states that one offer of $199,990 was withdrawn after a property inspection and another, with no potential price made public, was lost when the purchaser could not acquire a business licence for the new purpose.
If approved by council, the sale would proceed to final agreement, or failing that, a new list price would be set at $172,000. The conditional sales agreement makes a successful development to transform the space into a place of worship.
The property at 532 S. Railway was acquired by the city in 2020 when it was swapped in a deal with the food bank society for the former Maple Avenue fire station. As well, $800,000 in cash to the city made up the difference, making the accounting value of the S. Railway land and building $500,000.
In 2023, officials stated the carrying costs to insure and provide basic maintenance at the site as $18,000 per year.
