City council approves $10.7M sale of old Saskatoon police station

City council has approved the sale of theSaskatoon Police Service's former headquarters for $10.7 million.

On Monday, city council approved the sale of the former property to Duchuck Holdings Ltd.

The company hopes to convert the former police station at 130 and 140 FourthAvenue N.into office space.

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

In a report to city council, administration said it considered the $10.7-million offer to be fair and reasonable given current market conditions in Saskatoon.

Terms and conditions

The sale agreement approved by city council on Monday includes a number of terms and conditions.

• Provision of a five-year tax abatement of the full taxes on the building site at 130 Fourth Avenue N., subject to completion of a renovation or redevelopment of the property which would change the predominant useof the building
• Provision of a $395,000 credit to the purchase price for the buyer to remove hazardous materials that currently exist within the building
• The City retains responsibility for environmentally contaminated soil found to be located on the vacant site at 140 Fourth Avenue N., or which is proven to have migrated onto any surrounding property

The possession and closing date will be Tuesday, Feb. 14, 2017 unless the two parties agree on a different date.

Proceeds from the sale will be used to cover the cost of funds used to purchase Civic Square East and related parking lots.