Soon the price of property in two Moose Jaw subdivisions won't be quite so cheap.
During Monday's executive committee meeting, the committee unanimously agreed to implement market-level residential lot prices for available properties in both the Sunningdale and Victoria Heights subdivisions.
According to City Clerk-Solicitor Myron Gulka-Tiechko, the city has sold lots in those areas at prices that would encourage development for several years, charging amounts that only covered the city's costs in those subdivisions.
Since most of the city's infrastructure construction and installation in those subdivisions occurred in the 1970s, Gulka-Tiechko said the city's costs were actually fairly low, and therefore so were the lot rates (since they were only supposed to cover the city's costs).
However, in 2007 Moose Jaw experienced a housing boom, he added. Prospective developers were buying prime lots for $561 per front foot when the market value of those properties was almost double.
Unfortunately for some developers, said Gulka-Tiechko, there weren't enough contractors to start construction on lots before a one-year execution requirement took effect.
As a result, the city was able to reclaim nine sold properties over the past several months and the city now has 15 Sunningdale and Victoria Heights lots on its inventory.
Administration recommends the city adopt property values for these remaining lots that reflect market conditions. City council's executive committee agreed on Monday.
Therefore, pending council approval at a regular meeting, the city will raise remaining lot prices in these two subdivisions to $1,100 per front foot for standard lots, $1,210 per front foot for prime lots and $1,320 per front foot for walkout lots.
Coun. Brian Swanson noted the city was obviously selling property too cheaply in what was mishandled intrusion into the local housing market.
Coun. Al Schwinghamer said the cheaper properties were part of a development incentive that the city adopted back when it was more appropriate to have such incentives. However, he agrees current trends make continuing such inexpensive property sales in Sunningdale and Victoria Heights inadvisable.
Carter Haydu can be reached at 691-1265.
