City hoping to sell old Saskatoon police station for $10.7M

The City of Saskatoon is hoping to sell the Saskatoon Police Service's former headquarters for $10.7 million.

After sitting on the market for more than three years, Duchuck Holdings Ltd. has come forward as a buyer. The company hopes to convert the former police station into office space.

When it put the property on the market in 2013, the city was hoping to sell for $15.6 million.

• Buyer found for old Saskatoon police station, new office tower possible

"The initial list price of $15.6M was set based on market sales and the very active real estate market in the city at the time," reads a report heading to city council.

The report goes on to blame low commodity prices for a sharp increase in downtown business vacancies in the past several years. Right now, the city estimates the downtown business vacancy rate is sitting at around 16 per cent.

The new owner also hopes to eventually build an office tower on the station's parking lot.

Administration is recommending that the building site be given a five-year tax abatement as long as the new owners redevelop the site. The abatement is estimated to cost the city $200 thousand per year.

Council will vote on the sale at its meeting on Monday.