Industrial Ave. lots sell, but at a discount

Two lots acquired by the city during a flood buyback program have been sold, but at a deep discount.

Houses at 630 and 634 Industrial Avenue were badly damaged during the flood of 2013 and shortly afterwards the owners accepted a relocation program payment from the province.

A city program bought the bare land along with others, in hopes to resell the land for redevelopment.

Sales have been slower however, and on Monday council voted to accept an offer of $99,000 for the two lots that each measure 25-feet wide but were marketed together as a single parcel.

That represents a 25 per cent reduction off the recent combined listing price of $131,500.

Since the offer by Remcon Builders is more than a 10 per cent difference, the offer went before city council for approval on Monday. It was accepted by a 9-0 vote.

Mayor Ted Clugston said the goal of the 2013 land-buying program was to aid residents and earn a small profit.

“The goal was to help people get on with their lives,” he told reporters.

“It’s good news that were seeing an offer on two lots. The developer is showing some confidence in the area.”

In April 2015, the properties saw no offers at an auction with the reserve bid price of $159,000.

That comprised an original blanket rate of $17 per square foot of land. The rate was reduced recently to $14 and Monday’s sale reflects $10.

“If you’re looking to build, look at prices in the Flats,” said Clugston.

“These have been on the market for a while but it’s the first good offer. It is lower than what we were initially asking but it’s well within a negotiating mandate.”

The properties are situated in an area designated as flood fringe and subject to flood proofing standards that planners saw were adequate to protect property. The city also plans to begin construction this year on a berm to separate the Seven Persons and Ross creeks from Industrial Avenue.