Clarifying city’s land purchases
I would like to clear up some misunderstandings arising from the story in the Oct. 11 issue of the Lethbridge Herald regarding two land purchases approved at this week’s city council meeting.
The story did not indicate how these land purchases were being funded. It may be helpful for readers to know that the land purchases are funded using revenue generated from commercial, industrial and residential land sales conducted by the City’s real estate and land department.
These purchases have absolutely no impact on property taxes.
The land parcels were purchased for future residential development, which may be decades away. Purchasing them now allows for effective community planning. Similar long-term land purchases have been made in the past. For example, in the 1980s, the City purchased undeveloped land in west Lethbridge that is now being developed for construction of new homes in the Crossings subdivision. This development already includes major recreation facilities, a public library, schools and a major new shopping area.
The role of the City of Lethbridge in land development is:
• To provide industrial, commercial and residential land opportunities
• To seek opportunities for orderly assembly of land for effective community planning
• To provide opportunities within City residential developments for the public and smaller home builders to purchase serviced residential lots
To generate revenue from residential subdivision development to be reinvested, reducing the capital or operating costs for projects and facilities that would otherwise be funded from property taxes. Some examples of projects where land revenues have been reinvested from subdivision profits include the North Regional Park, the Crossings Sports Fields, the ATB Centre arenas a curling rink, affordable housing, and the Helen Schuler Nature Centre expansion.
It’s important to understand the difference between developers and home builders. As one of several land developers active in Lethbridge, the City provides new subdivisions with roads, sidewalks and serviced lots, and makes those lots available for purchase by the public as well as smaller and larger home builders.
In recent years, the City’s share of the residential development market has been approximately 18 per cent, leaving the remainder for large private developers.
I hope this information is helpful in clarifying any misperceptions.
Chris Spearman
Mayor of Lethbridge