What’s Happening?
The Town received interest from a developer to enter a partnership to build a mixed-use building at this site. The proposed mixed-use development has commercial bays on the main level and residential units above. If successful, this development will generate between $15,000 - $20,000 in new annual tax revenue on a currently idle piece of land with the potential to trigger similar development within the East Olds mixed use zone. This was first advertised in the newspaper and on social media on December 10, 2024.
Why?
A mixed-use development is the envisioned use for this lot in the East Olds Area Redevelopment Plan (ARP). The East Olds ARP can be view here: Area Redevelopment Plans. The reason the Town is offering this level of partnership is three-fold:
First, because the Town is dictating the precise development it wants built on this lot.
Second, there are significant demolition and remediation costs associated with developing this lot from its sand/salt shed use that ultimately limit its land value.
Lastly, as this is a municipally owned property, it does not currently generate tax revenue and incurs monthly utility costs for the Town. Should this idea be a success, it will become taxable, while also providing needed housing and additional commercial business space.
How did this come about?
This lot is not a Brownfield, meaning it has more development potential. Throughout 2023, several recreation groups were approached with the idea of developing this building into an indoor turf site. But with the cost to make it just a 3 season (spring, summer, fall) indoor turf facility at ~$250,000 in addition to uncertain operational costs when renovated, we were unable to find a partner and the Town was not willing to invest such a significant amount. In spring 2024, the idea for a partnership was brought forward to Council for discussion, who agreed to explore it. In May 2024, 7 letters of interest were sent to builders active in Olds that have a history/interest in multi-family and/or commercial construction. Several declined, while others did not respond. Only Masterbuilt Projects Ltd. agreed to explore a mixed-use development. A Letter of Intent was signed this summer with Masterbuilt Projects Ltd., which included strict conditions and required due diligence. In November, the Town felt Masterbuilt fulfilled those conditions to a reasonable extent and that due diligence efforts were positive. The mandatory advertising period for the property is now underway. Email caoadmin@olds.ca if you have questions or comments.
