INNISFAIL – The introductory lot prices at the new Southwest Industrial Park will continue until the close of 2022.
Since last May 9, the price per acre at the new 46.1-acre industrial park has been $160,000, a price that included the $9,711 offsite levy cost that is typically the responsibility of the developer.
Council was told the $160,000 price would remain in place until July 29 when it would be increased as servicing of the lands was scheduled to take place in the fall of 2022, with purchasers taking possession in the spring of 2023.
However, on July 25, council approved an extension to Oct. 31 on the $160,000 lot price.
Council was told at the time that “one of the big reasons” administration was recommending an extension to the introductory sales price point was that the new Southwest Industrial Park lands had recently been listed on LoopNet, a global commercial and industrial real estate website.
“The inclusion of the (offsite) levy in the purchase price was sort of a promotional kind of thing. That's what an offsite levy is – a charge that's placed on the developer,” said Meghan Jenkins, the town’s director of community services.
She noted offsite levy fees are monies that go to pay for infrastructure that serves the entire town, such as lift stations, water reservoirs and large intersections.
“The things the town ends up having to do because of development, but they are not directly related with the site itself,” said Jenkins.
At council’s regular meeting on Oct. 24 Jenkins presented a recommendation to continue the introductory lot price from Oct. 31 to Dec. 31.
Jenkins told council the town has received “moderate interest” in the new Southwest Industrial Park lands and has sold 4.19 acres of the total 46.1 saleable acres.
She said the town also has “solid interest” from four additional parties at this time.
“The extension of the current pricing will allow for appropriate agreements to be made with these parties prior to a price change if they are serious about moving forward,” Jenkins told council through her report.
But on Jan. 1 the $160,000 introductory offer ends. The cost for an acre of land in the Southwest Industrial Park goes up to $175,000.
Jenkins said in her report to council Oct. 24 the proposed pricing for the sale of the lots reflects the projected cost of servicing the property (water, wastewater, storm, FortisAlberta electricity, ATCO gas, paved roads), applicable offsite levies and remediation costs. She said there will also be a small margin for profit.
Jenkins’ latest report to council reiterated that servicing of industrial park lands will take place in the fall of 2022 with purchasers taking possession in the spring of 2023.
Council unanimously approved a motion to set the price of land for sale within the Southwest Industrial Park at
$175,000 per acre effective Jan. 1, 2023.
