Saskatoon council votes to purchase more land around proposed arena site

Three more pieces of land have been approved for purchase by Saskatoon’s city council to the tune of $17.3 million.

The land is around the north Midtown Plaza parking lot that the city is planning to turn into a downtown arena and entertainment district. The additional land is meant to enhance the space needed for people to gather in the area.

The decision to move ahead with the land purchases was unanimous during Monday’s city council meeting.

Clae Hack, the chief financial officer for the City of Saskatoon, provided an update to council during the meeting on the property realized reserve. The reserve is a tool for the city to use to purchase land for future use.

The money contained in the reserve is how council will be paying for the three new pieces of land, as well as how council funded the initial $25-million purchase of the north Midtown Plaza parking lot.

Hack explained the reserve had $81 million in it prior to the council’s recent and upcoming purchases pertaining to the arena and downtown entertainment district. He reported that once these three land purchases go through, on top of the parking lot purchase and other expenses, the reserve will stand at $11.43 million.

When asked, Hack told council the balance is lower than what a report from city administration lists as optimal for the reserve, but said it’s a manageable total to have on the books. He reported there is no need to be concerned over the total, but the impact might be felt as other strategic acquisitions arise that the city might be interested in purchasing.

However, Hack noted the city’s administration can work with council to figure out any future plans for big purchases using the reserve or that might exceed the reserve’s balance.

Ward 9 Coun. Bev Dubois asked a number of questions about the reserve and costs related to the purchase — questions she said she feels Saskatoon residents are also wondering about.

City administration confirmed there won’t be a mill rate increase as a result of the land purchases. It also shared that purchasing the land now, as opposed to later in the project’s development, would ensure a cheaper purchase price and, therefore, less cost to the city.

In the meantime, the new land purchases will also generate revenue for the city through leases and parking lot contracts with current tenants.