Wow this is getting close to being a reality.
My fingers were getting cramped from keeping them crossed for so long.
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City sets Parcel Y price
Land priced at $5.2 million; developer ready to proceed
By
David Hutton, The StarPhoenix
It's been called Saskatoon's most valuable piece of property and now we know what city council thinks it's worth: $5,240,494.
The city has reached an agreement on the price of Parcel Y with Lake Placid Developments, in partnership with Karim Nasser's Victory Majors Investment Corp., one of the final steps toward the end of more than a year-and-a-half of delays, extensions and public drama for the city's most touted private development.
"We're ready, willing and able now to proceed with the $200-million project," Lake Placid CEO Michael Lobsinger said Tuesday. "We have financing in place . . . and are ready to move dirt in June or July.
"We're going to be going forward with all phases of the project right away."
City council, sitting as an executive committee, made the decision in private Tuesday afternoon to advertise the land sale before it was announced at the evening council meeting. The sale still requires the blessing of city council on June 14 because the purchase is for less than market value.
At that meeting, those with objections to the sale will be able to speak before city council takes a final vote.
The sale -- for $5.24 million -- is $5.76 million less than the $11-million value arrived at by outside appraisal firms two months ago.
The city agreed to sell the prime riverfront land, across from the Remai Arts Centre, to Lake Placid once before -- for $4.8 million.
But the company wasn't able to meet several payment deadlines after markets collapsed, putting financing in limbo and forcing the developer to forfeit a $250,000 downpayment to city coffers.
A new sale agreement will have a stipulation that title will not be transferred until the city has assurances the developer has money to bring the land back to grade-level and build an 800-stall underground parkade, which is estimated to cost more than $50 million, said Mayor Don Atchison.
It's the most due diligence the city has done on any land sale, Atchison said.
"We have to bring this to an end at some point in time," he said. "We're getting close to the end with them and hopefully everything will be in place for the June 14 meeting.
"We want to make sure it does get developed and doesn't get stopped halfway through."
Sandi Schultz, special projects manager with the city, said documentation will still be required that shows financing is in place for more than just the land purchase.
"I am comfortable this project will be complete," said Schultz. "The city is confident they have the money but there needs to be that document that shows they have funding to bring the project to grade (level)."
The $200-million hotel-condo-offfice project could be completed in 36 months, Lobsinger said.
The $5.24-million price tag is not a deal, he said.
"It's a fair value for the land," Lobgsinger said.
"It gives a higher value to the entire (River Landing development)."
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