MOOSE JAW — After being used very little for a decade, a city-owned building that was once used as a music venue and to store sports equipment has been sold to a private company.
During its Oct. 21 regular meeting, city council unanimously accepted a tender for the sale of 441 Fairford Street West from R.L. McLauchlan Holdings Ltd. for $241,050. It also authorized the mayor and city clerk to sign the sales agreement and any other documents.
Council was required to authorize the purchase because the price exceeded the city manager’s approving authority of $100,000 under the city administration bylaw.
The City of Moose Jaw owns the property and building, which was most recently used as the city’s sports equipment library, as storage for the playground program and by the engineering and facilities division, a council report said. However, the city has not made any significant investments in the venue during the past 10 years.
Before the city purchased the building, the structure was commonly known as the Moose Jaw Lions Junior Band Hall.
The city obtained quotes in 2023 to partially restore the building by replacing exterior doors and windows, adding an overhead door for vehicle access, completing washroom renovations, upgrading the furnace and HVAC systems, enhancing lighting and painting the exterior, the report said.
The estimated cost for those upgrades was $135,000.
City administration had the property assessed recently by a third-party appraiser, who determined the estimated fair market value was $230,000, the document continued.
The department of community services issued a tender in September for the property, with a reserve bid of $230,000. It also contacted parties that had previously expressed interest in the building to let them know about the tender, but none responded.
R.L. McLauchlan Holdings Ltd. was the only group to submit a bid and offered a deposit of $24,105, which represented 10 per cent of the total bid.
“This (tender submission of $241,050) is considered a fair value given the property’s current condition and the ongoing costs to maintain the building and property,” the report said.
With this sale, the city could receive a minimum of $4,091.84 annually in tax revenue, although that could increase depending on the type of business that the new owner starts and assessments on commercial properties, the report added.
Mayor Clive Tolley commended city administration for keeping track of a property that the municipality was not using fully, that was not bringing in tax revenue and that could be sold. He pointed out that the proponent submitted a bid that met the minimum amount, while that company will improve the building for business purposes, which would mean more taxation for city hall.
“So I think it’s a win-win for the city,” he added.
Selling this building and the property is a good move, while the city is receiving fair value for it, said Coun. Jamey Logan. He thought the people taking ownership would “do a bang-up job” of renovating the structure, while he also appreciated that the property would generate tax revenue.
Coun. Crystal Froese said the building needed some tender loving care, while she was excited to see how the new company used it. However, she was saddened that the Lions’ logo would no longer be on the front of the building, a move that symbolized “the end of that era” since the organization has a significant history in Moose Jaw.
City administration told council — in response to a question from Coun. Doug Blanc — that the property may need to be rezoned based on how the company uses the building.
The inaugural meeting of the new city council is Monday, Nov. 18, while the first regular meeting is Monday, Nov. 25.
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