OLDS — Town of Olds' council has authorized chief administrative officer Brent Williams to finalize a deal to sell municipally-owned property at 4818 51st St. to Masterbuilt Projects Ltd. for $1.
Council made that decision during its Feb. 24 meeting.
The property, just east of the railroad tracks, is the site that the town’s former salt and sand Quonset sits on.
That shed became superfluous when a sand and salt shed was opened in 2022 at the town’s new operations centre in the west end of town.
Under the deal, the land will be sold to Masterbuilt Projects Ltd. if the developer constructs a mixed-use building with commercial space on the bottom and residences above that meets with the town’s approval.
Williams estimated that project will likely cost at least $5 million.
As the Albertan reported earlier, Town of Olds officials tried to interest various groups, including several local sports teams, in acquiring and utilizing the land but they balked out of concern about the potential cost, which Williams said be at least $250,000, and possibly double that, depending on the use.
“There just wasn't enough appetite based on the cost, once you change your use from an uninsulated, unheated, unserviced, lack of bathrooms, no water, sanitary, sand/salt shed into a children's sports venue,” Williams told council.
“There's obviously a lot of fire and safety code concerns that have to come to account.”
Williams said the cost to demolish the sand/salt shed alone could be more than $100,000. He said before demolition, answers about potential issues like mould and asbestos would need to be obtained.
Under the Municipal Government Act, council has the authority to sell land for less than market value but must advertise it and allow a 60-day petition period. That period expired Feb. 8, and no petition was received.
“Informally, administration had approximately 10 interactions via phone calls, emails, and in-person visits regarding the proposed sale,” a document in council’s agenda package said.
“Roughly half of this contact was opposed to the transaction and the other half was simply curious (about it).
“As was outlined previous to council and in subsequent public communications, administration believes that this transaction is in the best interests of the Town of Olds) and if successful, will produce several positive outcomes, including $15-$20,000 in annual property tax revenue, affordable rental units, additional commercial space, and hopefully spur mixed-use development in East Olds, as envisioned by the East Olds Area Redevelopment Plan.”
Williams said he approached “seven-ish” builders who are active in Olds and area in the construction of commercial and multi-family buildings.
Masterbuilt has other projects
“Masterbuilt Projects was the one entity that submitted an expression of interest. No one else did, either through silence or direct declining,” he said.
Williams said after the two parties signed a memorandum of understanding regarding the project on the former salt shed land last summer, Masterbuilt Projects now has seven active development and building permits under construction or approved: six single-family homes and one duplex.
Williams noted the company has experience building in the Calgary market.
He stressed that there are still certain bars that will have to be cleared before the deal is done.
One is that all development and building permits must have been submitted and approved by Dec. 31 this year. Secondly, demolition and construction must begin by Aug. 1, 2026.
Williams said the agreement is a first for himself and Olds. He added that via social media, town officials have learned a lot about the need for better communication about initiatives like this.
“(We) always can learn things, but it comes down to this is still a good project for the for the town,” Williams said.
“If it is successful, it will not only provide us with a return on investment through property tax dollars, we provide affordable housing and provide more retail space.”
He noted that a retail gap analysis undertaken for the Town indicated it needs far more retail space in the next 10 years to accommodate the potential growth in the community. If that space isn’t provided, those businesses may go elsewhere.
Williams said it’s also hoped that if the project is successful, that will give confidence to developers to construct more mixed-use developments in the area.
Cautious optimism
Coun. Darren Wilson expressed cautious optimism about the deal, saying several people have talked to him about it.
“I do like where it's going, particularly following the retail gap analysis that we've just heard and everything we've heard about housing and affordability and revitalizing East Olds,” he said.
“I do applaud and like its innovativeness, creativity, out-of-the-box, thinking.
“The comment I hear occasionally is, ‘don't interfere with the free market.’ But I think the benefits and the approach we've done and followed with administration give me some comfort in that area.”
Wilson said his one concern is a fear that MasterBuilt could sign the deal, do nothing on the land and then flip it for a huge profit. He wondered if the property would revert back to the Town if the deal falls through.
Williams said that’s why those two dates mentioned above are so important, along with the caveat that the building constructed must meet the Town of Olds' approval.
He stressed also though that the municipality does not want to interfere in the free market per se.
“If they build it, it works great, and it's a great building they can then sell it for a profit. That's the free market,” he said.
Williams said the property would first go to the financial institution involved; the Town would be second in line for it.
“Even though it's a risk, it's no cash outlay to the town, no financial risk,” Williams said. “And working with financial institutions, they tend not to want to let their investments sit either.”
Coun. Heather Ryan said she understood Wilson’s concern, but gave the plan an overall thumbs-up.
She echoed Williams’ points about the land currently sitting vacant, providing no tax dollars and the opportunity to add much-needed housing and commercial space in the area.
Coun. James Cummings said several residents have talked to him as well about the agreement.
“The one thing I'm amazed at is how much power a lot of our citizens think we have when it comes to directing development in our community,” he said.
“And the reality is we don't have much. The only thing we have is financial incentives like this one.”
Cummings said although this kind of agreement is new to Olds, it’s not new in other communities in Alberta or across Canada.
“It is a well-established process. I know a lot of our community members were concerned about the $1 sale amount, but really the only power municipalities have to control what is being developed in a community is financial incentives such as this,” he said.
“So I'm a big supporter of this process because it is a development style that we want to kick off in this area.”
Besides, he said he’d talked the concept over with administrative staff “multiple times” so he’s confident it’s a solid plan.
He also echoed the point that it’s been sitting for years, generating no income for the Town of Olds.
