City Council Approves Sale of Former Saskatoon Police Service Headquarters

A Sale Agreement has been reached with Duchuck Holdings Ltd. for the former Saskatoon Police Service Headquarters (SPSHQ) property, situated at 130 and 140 - 4^th Avenue North.

Today, City Council approved the sale of the former property based on the Terms and Conditions included in the Sale Agreement.

Noteworthy details of the Sales Agreement are as follows:

• Purchase price of $10.7M.
• Provision of a five-year tax abatement of the full taxes on 130 - 4^th Avenue North (building site) subject to completion of a renovation or redevelopment of the property sufficient to constitute a change of predominant use to housing, office, structured parking, or a combination thereof;
• Provision of a $395,000 credit to the purchase price for the Purchaser to remove hazardous materials that currently exist within the building.  The Purchaser thereby accepts full responsibility for the hazardous materials located within the building and indemnifies the City from any and all future claims;
• The City agrees to retain responsibility for environmentally contaminated soil found to be located on the vacant site (140 – 4^th Avenue North), or which is proven to have migrated on to any surrounding property; and
• Possession Date and Closing Date will be Tuesday, February 14, 2017 or such other date that may be agreed to by the parties.

In a report to City Council, Administration considered the offer to be fair and reasonable given current market conditions in Saskatoon.

Proceeds from the sale of 130 and 140 - 4^th Avenue North will be applied to the City’s cash holdings to replenish the funds used to purchase 202 - 4^th Avenue North (Civic Square East) and related parking lots at 209 and 221 - 5^th Avenue North.

The objective of the recommended tax abatement is consistent with the intent of the Vacant Lot and Adaptive Re-use Incentive (VLAR) Program. The value of the five-year tax abatement is estimated to be $200,000 per year, based on a property being a fully renovated, multi-tenant office building. The full tax abatement will result in foregone revenue for five years, to begin the year following completion of the renovation or redevelopment.