The sale of property to Canadian Tire is positive, says the mayor, since it shows residents growth is happening and indicates a billion-dollar company wants to be here.
City council recently approved the sale agreement with Canadian Tire Real Estate Limited (CTREL), which will see the corporation pay $3.1 million for 11.95 acres on the exhibition grounds, or $265,500 per acre. The municipality will have to service those acres for $2.4 million, leaving a net profit of about $688,000.
As part of the agreement, the municipality will, at its expense, install utility and service connections, such as sanitary sewer, storm sewer, water, electricity, natural gas, and telephone and communications services. The municipality will also install infrastructure such as roadways, traffic signals, curbs and curb cuts, easements, and right of ways.
As well, the property needs to be rezoned as C3 vehicle-oriented commercial district.
If this work is not completed by Sept. 30, 2020, then CTREL will — but is not obligated to — undertake the work to ensure the property is ready for business.
The closing date for the purchase is 180 days after the acceptance of the agreement, or sometime in early June, the report says.
“(We’re) very happy. We have been working a long time with Canadian Tire,” Mayor Fraser Tolmie said after city council’s Dec. 16 meeting. “It seems like a long time for council (at 38 months), but according to Canadian Tire, this is one of the quicker deals they have been able to work on.”
Council faced some challenges in completing this agreement, such as provincial regulations around burrowing owls in the area, he continued. However, council persisted, which Canadian Tire recognized and is important to attract growth.
Residents like to see growth and the opportunities that come with it, said Tolmie. CTREL — which is a billion-dollar company with more than 1,600 stores across North America, such as Canadian Tire, SportChek and Mark’s, and owns clothing line Helly Hanson — obviously saw the potential in the community.
“They are very forward-looking and we like to partner with companies like that,” he added.
When asked whether the municipality received a fair deal for the property, especially since net profit will be around $688,000, or about $57,000 per acre, Tolmie replied council and city administration worked with Canadian Tire on the negotiations.
“It’s always about the deal you got (and) the cash in the hand. As the saying goes, a bird in the hand is better than two in the bush,” he said.
The business community’s confidence depends on whether another new deal is forthcoming in Moose Jaw, Tolmie remarked. Many business people continually asked when this deal would happen, since it would increase vehicle and foot traffic on Thatcher Drive and Main Street.
Canadian Tire Real Estate has the first right of refusal to purchase an additional 21.44 acres (0.8576 hectares) located on the northeastern edge of the property, the agreement says. CTREL has 60 days to decide whether to purchase those acres. If that doesn’t happen, then the municipality can attempt to sell that property.
Under the contract, the municipality is obligated to ensure any portion of the 21.44 acres under the first right of refusal option is not used for any purpose for up to 20 years.
The agreement lists 27 business possibilities that are forbidden, such as: auto parts, service station, sporting goods, home improvement, plumbing, electrical, a garden centre, pet products, an auto rental agency, footwear, supermarket, a cinema, bowling alley, bingo hall, auction house, church/house of worship, strip club, or marijuana shop.
“I wouldn’t say (the restrictions are) a chokehold,” said Tolmie. Instead, it’s simply the company having a say over what is built near it. Council believes Canadian Tire is a “very reasonable corporation” based on past conversations, which could reflect well for any future developments in that area.
Tolmie also thought it was reasonable to put restrictions on what can be built on nearby property since the municipality does that to land it owns.
The next regular council meeting is Monday, Jan. 13.
