City Getting Into Land Development Outside City Limits
Wednesday, October 23, 2013 @ 3:45 AM
Do the taxpayers of Prince George want the City to get into the real estate business? That is the thrust of the plan that’s moving forward to buy from the Crown 584 hectares ( 1,445 ) acres of land outside of the city of Prince George’s boundaries.
Allow me to paint the picture more clearly.
If purchased for a rock bottom price, the City Of Prince George would buy this land at a cost of between 300 and 700 thousand dollars. It is more likely the Crown will hold the City to pay close to the estimated market value of the land and if so, that means the price tag would range between $867,000 and $2,167,500.00 The City would then have the land available to sell to a major company wishing to establish here.
If the City is successful, it stands to make some money on the flip.
The City’s record in buying property for a flip has not been exactly what one would call stellar in the past . Ah! , but you say there is the taxes the City would gain from a development on the property. Sorry, but you’re wrong. Any taxes that could be generated from any development would flow to the Regional District of Fraser Ft George, and rightly so, afterall, the property in question is in the Electoral Area "G" of the Regional District.
Oh, and don’t forget, the City of Prince George will have to pay taxes to the Regional District on that property until it has been sold.
What would the City receive?
Well , we could make some money on the sale of the land if the price increases, and no doubt if we hang onto it long enough, land values will go up.
But at a time when we are trying to sell parkland, Pine Valley Golf, the tennis courts, a portion of the Exhibition grounds (which by the way were donated to the City on the understanding that it remain as such), if we are so pinched for money that we are about the allow snow to pile up more in the residential areas before we plow it in order to save $180 thousand a year, why in the hell are we getting into the land development business?
If someone comes along that wants property, here’s a novel idea , get the Regional District to do a deal on their behalf .
If the City now feels that they should be in the land development business , try for example buying up some hot property in say China, maybe at our twin city, or even Hawaii, maybe folks visiting there could say as a taxpayer of Prince George we own a part of the Island .
Do not ever suggest that any property acquisition could not be accomplished without the City’s involvement. Anyone who could prove up a development at a price that makes money in the flip would be able to attract funds, plain and simple. Hell look at the property that the Wood Innovation Center is building on. Commonwealth didn’t have any trouble getting a loan on the property and was able to flip that property to the City for a half million bucks profit . Is the City now trying to steal a page out of Commonwealth’s development ideas?
This is an item that should have the taxpayers standing up and yelling, and they should be yelling long and loud. Can those on Council who supported this land deal say this project is "fiscally prudent"?
I’m Meisner and that’s one man’s opinion
Comments
Not enough information on which to provide an opinion.
“The City would then have the land available to sell to a major company wishing to establish here.”
Is the property immediately adjacent to the city limits so that it can be annexed?
Does the City have a buyer?
Is there a reason why the buyer cannot buy the land directly?
Is the property about to be sold for another purpose which would not be beneficial to the City?
The list could go on ad infinitum.
I agree with gus, there isn’t enough info. This could make sense or it could be a mistake, one would have to know the details and intent behind the purchase to draw a conclusion.
Unfortunately, we know that the City of PG operates in complete secrecy so one will never know the intent until after the transaction is made. In that situation, one must rely on history and experience to try and ascertain whether it makes sense. Has the city been transparent and successful in these types of ventures in the past??????
So I now read the details in the “news” section.
The reasons for the potential purchase are very clear to me. It has been a long time since Kinsley said that getting industrial land of this nature for the City/region is in the works.
That was then, when people had their government thumbs up their butts. This is now when there are finally people who have the guts to make something happen.
The expression “thinking outside the box” could not be applied to a more appropriate situation!
Hey … it is 8am where you are …. good day!! :-)
Gus: in the other story on this, the land is 36 Kilometers north of the city, so no it is not adjacent to the city boundary.
Yes, thanks for that Give more. I have already posted my thoughts there having seen where the land is.
This is not something out of nowhere. This has been worked on by the RDFFG for over a decade in one form or another.
It is one thing to zone land, another to have land ready to develop. I have certainly not explored all angles, but it is likely more in the City’s interest than in the interest of RDFFG.
That being said, the City is within the RDFFG and the RDFFG gets much funding from the City. Any owner of property could look at the City tax bill to see how much city land owners pay to the RDFFG, yet we do not have a say in electing reps on the Board. Council makes that decision and appoints our reps.
We used to have a regional development corporation. However, the City wanted to control the business of promoting development. One has to realize that promoting development within the City limits is a half-assed exercise.
I do not know what happened in the case of IPG and this development proposal. Strictly speaking, IPG should not have been involved. However, it is a prime example of why development which benefits the City may actually be development which occurs outside of the City and we are at the mercy of whichever the community happens to be which really does not have the capacity to handle such matters.
I think that the people on City council want to be seen as ‘players’ thus their desire to get into the land development game. Typical myopic viewpoint, the business of the City especially as it pertains to existing land deals is poorly managed, and they think they have the capacity to extend the City’s reach beyond its border.
metalman.
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