Moose Jaw could receive $2.6 million to $3.1 million if it can sell the former Union Hospital property that it acquired from the former Five Hills Health Region in 2015.
There are roughly 6.16 acres of land available at 455 Fairford Street East, with the option for a company to purchase and close an additional 1.2 acres of unused or excess road right-of-way, according to a report from city administration.
The minimum sale price of $417,452 per acre is based on an appraisal completed in 2015. One of the final steps in the process is for a preliminary geotechnical investigation to be conducted. Administration is now in the process of obtaining this report.
The purchase of this property would be a substantial addition to the tax base, the report said. It cost the municipality $3,375 for Phase 1 of an environmental report, while it cost $17,950 for Phase 2 for another environmental report. The cost of the preliminary geotechnical investigation is about $15,000.
During its executive committee meeting on May 27, city council approved a recommendation to have administration release and advertise requests for proposals (RFPs) for the redevelopment of the former Union Hospital property, upon completion of that preliminary geotechnical investigation.
The recommendation must be approved at a next regular meeting for it to become official.
The municipality acquired the property in 2015 for the purpose of resale. It then demolished the building in 2016 and officially took ownership of the property. Since late 2018, administration has been assessing the land to determine its suitability for redevelopment.
Earlier in the meeting on May 27, council officially approved amendments to the zoning bylaw and to the Official Community Plan. This will allow the municipality to rezone the property to R4 Core Mixed Residential zone.
There will be the capacity for the installation of water and sewer infrastructure, Michelle Sanson, director of planning and development services, told Coun. Scott McMann. However, there could be higher development levies if a developer came in with a building with higher density.
Sanson added it will likely be a couple of months before administration receives the geotechnical report.
Every effort will be made to preserve the trees on that property, particularly along the river and Fairford Street, Derek Blais, director of parks and recreation, told Coun. Brian Swanson. Digging will not be allowed within 50 metres of that flora.
The Rotary Trail that runs past that property will not be sold either, Blais added. Since the municipality retains ownership of the river bank, it doesn’t want to sell any portion of that.
The next executive committee meeting is Monday, June 10.
