Ben Eoin subdivision changing hands
Federal government has sold Aerie Estates
The federal government has sold the Aerie Estates subdivision, which was developed in conjunction with the construction of the Ben Eoin Marina, to a numbered company involving several local businesspeople.
An offer was received for 15 of the 16 lots in the subdivision, located on a hill in Ben Eoin, in November and the sale closed March 27, Gerard Shaw, regional director of Cape Breton operations for Public Services Procurement Canada, confirmed in an interview this week. The purchase price was $445,000.
According to a search of the Nova Scotia Joint Registry of Stocks, the directors associated with the numbered company that bought the subdivision include Mike Kenny, Troy Wilson, Rodney Colbourne, Siva Thanamayooran and Glen Brann.
Colbourne, who is listed as president, did not respond to a request for comment Thursday.
“That was listed for some time now, probably a couple of years since we had the listing out there, we had people that were looking but we had no other offers on the property,” Shaw said.
The former Enterprise Cape Breton Corp. had begun the process of trying to sell the lots back in 2013. The road that was built as part of the construction of the Ben Eoin Marina opened a tract of land up for residential development. The sale of the lots was expected to defray a good deal of the $1.1-million cost of constructing the road. At the time, officials indicated that the lots, depending on their size, could fetch between $70,000 and $100,000 each.
The road has been turned over to the Cape Breton Regional Municipality.
Only one lot was subsequently sold, until the remainder was purchased as a block. The lots had been listed both individually and as a block.
Shaw said the properties went for market value, adding the market has declined throughout the CBRM in recent years.
“When Aerie Estates was built, obviously we were looking to generate more revenue than this generated, but the market has declined and the number of lots that are for sale between Sydney River and St. Peter’s, if you’ve driven up that way recently, there’s for sale signs everywhere,” he said. “This is a direct reflection of the market.”
The goal from the outset of the development of the subdivision was to sell the lots and encourage growth in that area, Shaw said. It was also hoped it would help to enhance the area, which also includes the Ben Eoin Marina and The Lakes Golf Club, he added.
Shaw said he believes several of those involved with the numbered company already have an association with The Lakes and other interests in Ben Eoin and have a vested interest in developing the area.
“All I know is they intend to develop it, put homes on it and encourage the growth,” Shaw
said. “The absolute hope is a few homes go up there and it spurs a few more.”
When the former Conservative federal government announced the decommissioning of ECBC in 2014, Atlantic Canada Opportunities Agency took over direct delivery of its economic development programming in Cape Breton and Mulgrave, and the scores of properties owned by the former federal Crown corporation were transferred to Public Services Procurement Canada.
The department looked at the various lands and buildings involved to determine what would have to be retained because they relate to ongoing federal responsibilities such as mine water treatment and management of remediated sites. In all, there are about 5,000 hectares of land involved, with 88 per cent of those lands to be sold or transferred.
Public Services Procurement Canada’s mandate is to not hold any property that isn’t required for ongoing operations.
A “sold” sign has also gone up outside MacDonald House along King’s Road in Sydney, which had been home to the recently defunct Business Cape Breton. Shaw said an offer has been accepted for that property but it hasn’t yet closed so he couldn’t disclose the purchaser or the price. The sale is expected to close sometime in May.