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RFD- 4184 Business Items   Item #   11. b.    
Regular Council Meeting Agenda   
Meeting Date: 01/25/2021  
Title:    Sale of Land - Lot U13 Public Utility Parcel - Walker
Department: Economic & Business Development  
Strategic Vision Element: Where People Choose to Grow a Business - A strong, diversified regional business centre Related Goal: Spruce Grove has a robust, growing economic base that generates increased revenues to support the City’s high standards for services and programs.

Request for Decision Summary
The City is proposing to sell Lot U13 Public Utility Parcel to 588918 Alberta Ltd. which recently acquired the former ATCO lands in the Diamond Industrial Park.  This is a long, narrow remnant strip of land of approximately 0.9 acre along the south side of the CN Rail right-of-way.  The parcel is stranded as it has no road access.  The buyer is wanting to consolidate this parcel with the adjacent lands as part of a plan to improve drainage for the larger parent site.  

Proposed Motion
That the sale of Lot U13 Public Utility Parcel, Block 2, Plan 5764RS to 588918 Alberta Ltd. be approved at a price of $54,000 plus applicable GST.  
The City has entered into a conditional sales agreement with 588918 Alberta Ltd. for the sale of Lot U13 Public Utility Parcel, Block 2, Plan 5764RS.  The lot is a long narrow piece of land located on the north side of Lots 9 and 10, Block 2, Plan 5764 RS (#50 and #60 Alberta Avenue) along the CN Rail right-of-way in Diamond Industrial Park.  It is approximately 0.9 acres in size, has no road access and contains a drainage easement.  Lots 9 and 10 were previously part of the lands owned by ATCO until they were sold to 588918 Alberta Ltd. in 2020.  ATCO used these lots for industrial trailer storage though the site had inadequate drainage which resulted in very poor soil conditions.  The Public Utility Parcel was intended to provide a partial outlet for the water but the grading of the larger parent area did not support it. 

With the change in ownership, the new owner is preparing a site grading and drainage plan to make Lots 9 and 10 potentially developable.  This involves acquisition of the U13 Public Utility Parcel and consolidating it with Lots 9 and 10.  The drainage easement now contained in the Public Utility Parcel will remain but it will now be connected to another recently secured drainage easement to the south which in turn connects to a storm water management facility next to the Food Bank.   

The value of the Public Utility Parcel was appraised by Altus Group as a remnant lot and recommended a sale price in the range of $54,000 plus applicable GST.  This price was accepted by the buyer.  
The City could retain the Public Utility Parcel and remain responsible for its maintenance.  This is complicated by no road access and is in fact a stranded lot.  
There has been ongoing engagement with 588918 Alberta Ltd., the new owner, on preparing a subdivision and consolidation plan for Lot U13 and a grading and drainage plan for the larger parent site (Lots 9 and 10).  
The sales transaction is dependent on completing the subdivision and consolidation plan for Lot U13, approval by the City of a grading and drainage plan for the larger parent site and approval of the sale by City Council.  
The City is able to dispose of a remnant parcel of land that represented a cost to the City.  At the same time, this will facilitate drainage improvements for approximately 14.65 acres of industrial land in Lots 9 and 10 which will make them potentially developable for higher value use.    
Map - Lot U13 BLK 2 PL 5764RS

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