The City of Lacombe recently made a deal with Tricon Group that will hand downtown properties to the developer.
“Council was very pleased to finally ink a deal last night with Tricon Developments after a lengthy negotiation period,” Mayor Grant Creasey said.
Following an Expressions of Interest process seeking creative solutions from the private sector for underperforming municipal properties, the City of Lacombe reached an agreement with the Tricon Group that the City says will benefit taxpayers and revitalize key downtown properties.
“Our administration underook the process to garner some creative ideas from the private sector. They came out with a very good outcome,” Creasey said.
The Tricon Group, a Lacombe-based real estate development company, proposed a land exchange with the City involving multiple properties of approximately equal value.
The agreement involves the exchange of the municipally-owned Provincial Building and (former) Police Station/current Fire Hall building for the Tricon Group’s property at 5404 56 Avenue (the former Parkland Regional Library), and a cash payment of $375,000.
The Parkland Regional Library is working with Tricon and will be moving into a new facility, currently under construction in the Iron Wolf Crossing area. The City is currently talking with community groups to be potential tenants in the former library facility. Lacombe CAO Mathew Goudy said the land where the library is currently located has stategic value to the City of Lacombe.
In terms of the provincial building and the current fire hall being now under Tricon’s management, the City expects tax revenue to be generated from the formerly tax exempt properties.
“Easily $50,000 a year from this arrangment,” Goudy said.
The Lacombe Fire Department will continue to operate in their current space as part of a lease-back agreement until relocating to a new fire hall, slated for 2023-24 construction as detailed in the City’s 10- year capital plan.
“This is a positive development for all parties involved,” said Creasey. “At first glance the City may be exchanging two assets for one, but in reality there is much more to this agreement. We are trading closed doors and darkened windows for spaces that will immediately generate tax revenue, and once redeveloped, add to our vibrant downtown.”
“This agreement also releases the City from significant ongoing maintenance obligations for buildings that had no immediate municipal purpose,” said Mayor Creasey.
A fire services review is currently being conducted which will determine the best spot for a new fire hall in the city of Lacombe. The current facility will continue to operate until a new facility is constructed.
“A lot of fire calls are actually out into the County, so I am expecting it will have better access to our primary highway,” Goudy said, suggesting Midway could be a possibility
According to Goudy, the land exchange is a win-win for both parties and for the community as a whole, given the Tricon Group’s track record with other local projects, such as the new Lacombe Community Health Centre and the transformation of the former Empress Hotel.
“This is a great example of a public-private partnership delivering value to the community, thanks to the differing but complementary needs of the two entities,” said CAO Matthew Goudy. “The acquisition of the former Parkland Library site creates a large, continuous municipal land reserve in the heart of our community from City Hall to the Gary Moe Auto Group Sportsplex, which gives us flexibility to respond to opportunities in the future.”
The deal is expected to close in March, and will impact the City’s 2020 Operational Budget.
-With files from the City of Lacombe
todd.vaughan@lacombeexpress.com
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