Quote:
Originally Posted by suburb
Paying 900% the market valuation is a little rich.
BTW - the church has gone from a 1/3 parcel of land that limited their growth (IE they had to consider moving anyway) to a 4.83 acre parcel of land they purchased for $2.425M. The new structure will have 20,000sf with copper-clad domes, seating for 400 (larger than their congregation), 163 parking spots and tons of room to expand. http://www.stmina.ab.ca/Dream/StMinaChurchDrawings.pdf
I'm very happy for them IE they took the opportunity to think longer term, build out, and still have half the parcel as extra. What I'm not happy about is the 900% the City gave.
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From the article, they put some of their own money into the building. I'm not going to analyze whether they were paid too much or not, but let's look at it a bit with some things in mind.
The land they were on was FAR short of current required parking for a place of worship. I wouldn't doubt that it would cost more than the assessed value of the original land just to buy a parcel of land big enough to build the required parking for the same size building.
I would guess that to simply buy land, and to build the same capacity building as they had, that they would be looking
at least triple the assesment of their original land. That doesn't account for the hassle of moving, dealing with a building project, renting space in the interim (both for worship and office space), etc.
In short, giving the church 900% of the assessed value is much closer to a fair value that it may seem at first thought.
As a comparison, I worked with a church recently that wanted to do an addition and renovation. This is for a church that had been in its current location in the community for 50+ years. The last development permit that they had (1970 or so) allowed them to have 270 people inside, with ZERO legal onsite parking according to the current land use bylaw. Under the current bylaw, that church would have to have a minimum of 68 on site parking stalls to meet that capacity (1:4 ratio). As part of the addition's plans, we limited the capacity to 200 people, but we could only squeeze in 27 or so parking stalls into the portion of their lot that had been grass (200 people would require 50 stalls), which was about half of their lot. If we actually wanted to meet the land use bylaw standard, the entire lot would have to have been turned into parking, to allow for a auditorium that was allowed to hold LESS people than before (obviously you couldn't have parking and auditorium space in the same spot.