City Council has approved the purchase of three properties in downtown Saskatoon, ahead of a final decision on whether or not the downtown entertainment district project will go ahead. The total cost for the STC Depot, which the province sold to a developer a few years ago, the Midtown Professional Building on 23rd Street and the Pacific Avenue Medical-Dental Building is $17.3 million.

Director of Saskatoon Land, Frank Long, explains that external consultants advised them to try to secure as much property as you think the project might need, because if you wait, the price will go up significantly. He notes that if the project doesn’t go ahead, the land can be sold, or the City could continue to lease the space, or they could examine the potential for locating City staff on these properties. Until any decisions are made, Administration reports that the properties are expected to generate revenue through their current leases and parking contracts at an estimated $320,000 annually, and that could increase if tenants for some vacant spaces are secured. The next step after the purchase would be to hire a property management company to manage the properties.

Council heard that the money will come from the Property Realized Reserve, which is funded through land sales, so it won’t have any effect on taxpayers. The report to Council also stated that there is some asbestos-containing materials in the Midtown Professional Centre and Pacific Avenue Medical-Dental Building, so if the entertainment district project goes ahead, that asbestos will have to be taken care of before the buildings are taken down at a rought estimate of $300,000.