Saskatoon city council approves $17M to buy more land near proposed downtown arena site

Saskatoon city councilunanimously approved spending an additional $17 million to buy three properties near the site of a proposed event centre downtown.

Council previously approved $25 million to buy the north parking lot of Midtown shopping centre as the future home of the city's new arena and entertainment district.

According to a city report, the new funding will purchase the former Saskatchewan Transportation Company bus depot across the street for $6.95 million.

The remaining $10 million will collectively pay for building mostly used for medical offices at 39-23rd St. for $5.2 millionand 149 Pacific Ave.for $4.75 million.

"The main reason for doing it right now is that if we wait. the price we will pay will be significantly higher once council formally approves the project," said Frank Long, the city's director of land.

In order to purchase the properties at this time, the city said it approachedowners with offers higher than the appraised value.

"Getting these properties now likely results in the best value for the city and the project," Long said, noting the purchases align with advice fromoutside consultants.

Properties expected to pay for themselves

The city said the additional spending money will come from the Properties Realized Reserve, which is funded through land sales.

According to a report from city administration, the three properties are expected to generate $320,000 in revenue a year while the city owns them througha combination of lease arrangements and parking stalls.

Long added that the city plans to hire a property management company to help them secure tenants to fill existing vacancies.

"All of the costs associated with the the property management firm would be borne by the revenue that we received from the properties," he said.

"So the properties will essentially pay for themselves."

Council has not given approval to the final project.

Prior to the vote, the city's director of technical servicesDan Willemssaid the additional land means more room and options for overall district design.

"Providing space to move large volumes of people into and out of the area without overly impacting normal traffic in and around the site," Willems said.

"Operations such as loading facilities, tour bus parking or access and the like ... having more space to fit the various Tetris pieces into place."

The city has been buying up land near the proposed downtown arena site since 2013.It now owns a combined eight buildings and parking lots.

Project still pending

The city still doesn't know how much the arena and entertainment district will cost.

Several councillors have said they would not support any property tax hikes. Saskatoon Mayor Charlie Clark has also said he doesn't want the project relying on that funding.

City administration said preliminary capital cost estimates and a preliminary funding strategy would be in place by the summer.

Willems said previously that city staff expect to have a detailed funding package by November 2023.