City of Saskatoon spends $17M on properties near downtown arena site

Saskatoon city council has authorized a purchase of more than $17 million for three buildings adjacent to the proposed location of a new downtown arena.

At council's regular business meeting on Monday, councillors unanimously voted in favour of purchasing two buildings on 23rd Street East — including the former Saskatchewan Transportation Company (STC) bus terminal — and one property on Pacific Avenue for a total of $17.3 million plus $335,000 in commissions and other costs.

"It's exciting today to be able to tell our community that things are moving forward, in a way that will — I hope, start to imagine what the district is going to look like," Ward 6 councillor Cynthia Block said following the meeting.

Property taxes aren't affected by the purchases. Money is being pulled from the city's Property Realized Reserve, which is made up of land sales.

The most expensive of the trio is the former STC depot at 50 23rd Street for $6.95M. The Midtown Professional Centre building at 39 23rd Street cost $5.2 million and another office at 149 Pacific Avenue cost $4.75 million.

All three buildings were sold for more than its appraised value. Two of the buildings — 39 23rd Street and 149 Pacific Avenue — were sold for more than $1 million above the appraised value.

This decision means the city is now purchasing land well before any sort of vote to approve the project, but director of Saskatoon land Frank Long said consultants who helped form Edmonton's ICE District suggested that this path not only gives the project maximum flexibility, but also maximum value.

"If we wait, the price we will pay will be significantly higher," he said. "Once council formally approves the project, we expect land (value) in and around the project to increase, so getting these properties now likely results in the best value for the city and the project."

Mayor Charlie Clark was excited at the prospects this creates for Saskatoon moving forward.

"As we're preparing and trying to build the city for the next 50 years what we want to do is to build a district that can really bring that gathering place and that way of people connecting and coming together for the generations to come," Clark said.

Purchasing the properties not only allows for a public plaza, access ramps or other features for the project, but a report from city administration said it also allows the building to be orientated in either an east-west north-south direction.

City administration said the three properties would generate $320,000 a year in revenue while the city owns them, with opportunity to increase that if tenants are found for the space in the buildings.

The city's Property Realized Reserve balance is now down to $11.3 million after opening the year with a balance of $81.01 million.

The remaining $42.3 million spent from the reserve in 2022 was for the three purchases on Monday and the $25 million for Midtown mall's parking lot where the arena is slated to go.