Let’s make a deal
Purchaser to convert property into two-unit residential building
Former North Sydney police office has been sold.
The Cape Breton Regional Municipality has accepted an offer to purchase the former North Sydney police station for $135,000.
CBRM property manager Sheila Kolanko presented the offer to Cape Breton Regional Municipal council at its general committee meeting Tuesday.
“It’s a cash purchase, there’s no financing clauses in the agreement or in the offer,” she said. “He’s accepting the building as it is today.”
The 4,174-square-foot property is located at 412 Purves St. Council passed a motion declaring the building surplus in December. Tenders were called in January for the more than 60-year-old building, which was previously a convent.
Several people went through the building as part of a public site visit during the sales process.
The 2017 commercial assessed value of the building is $169,800, while an appraisal set the market value at $175,000.
Originally, as a result of the tender process the CBRM received one bid of $72,000, which was rejected. Regional solicitor Demetri Kachafanas was later approached by real estate agent Roger Burns representing an interested buyer who sought a one-day listing. The CBRM agreed to that, provided the property be shown to other interested parties.
A $145,000 offer was received and the CBRM countered with the commercial assessed value, which was rejected.
Burns provided the CBRM with a competitive market analysis of the property that stated in its current condition it has limited potential and it had a value of $130,000-$135,000.
In her report to the committee, Kolanko said if they felt reasonable time and effort had gone into the attempt to sell the building and the market is unlikely to eventually pay much more for it, a lower offer could be seen as market value.
If the building remained vacant, it could result in additional costs for the CBRM, she said, and the building could deteriorate. By selling the building at a reduced price it could be placed back on the assessment roll in a short period of time, she added.
The purchaser intends to convert the property to a two-unit residential building.
Dist. 2 Coun. Earlene MacMullin had some questions about the sales process, asking if the building had been formally listed with an agent and noting there was only a for sale sign placed in its window, with no contact information. Kolanko said when inquiries were received they were directed to Burns.
“I’m fine with the value of the property, I understand that, there’s no point holding onto it, but I’m very leery that we’re looking at accepting a private offer when other people who have looked at it aren’t aware that we’re reducing the price,” MacMullin said, adding she wanted to ensure it was a fair process.
In all, about a dozen people were shown the building, Kolanko said, but there were no written offers.
Kolanko said every person who went through the building was informed of the new offer and was asked if they were interested in reoffering. There was one higher offer received from a resident of Newfoundland and Labrador, however it was conditional on her selling her home there.
Councillors voted in favour of accepting the $135,000 offer.
Section 50 (5) (b) of the Municipal Government Act that states a “municipality may sell property at market value when the property is no longer required for the purposes of the municipality.”