City land plan faces hurdle
A city proposal to help its land department maintain a limited marketshare faces two major hurdles, according to a private developer in Medicine Hat, which argues both roadblocks are formed because of the city’s very presence in the business.
The city land department’s 2016 annual report states it is staying out of the way of the private sector, but notes that if private developers don’t acquire more land holdings soon, its share of the market can only grow over time.
It suggests that bulk bareland sales of its large, municipal holdings or possibly annexation could reset the balance.
Don Sandford, CEO of Lansdowne Equity Ventures, says however, that new mid- to large-sized developers would be wary to enter the market where it would compete with a municipal land company.
Currently, local developers at “running on the spot,” said Sandford. “Developers need to get through their developments in a reasonable amount of time.”
He has long complained the city has tax and cost advantages that others don’t when scheduling developments and pricing land.
This week he said the size of the city’s land base — about 2,200 acres of potential residential land — effectively blocks annexation of more privately held land.
Since 2009, Lansdowne has brought along phases of the south-end Hamptons community, where room for only about 200 more lots remain.
However, the company holds an interest in more than 200 acres of land directly south across South Boundary Road in Cypress County.
“If the city would be interested in getting that (annexed), we’d be interested in developing our land,” he said.
However, with the amount of unbroken land within city limits, Alberta’s Municipal Affairs ministry isn’t likely to grant an annexation proposal from the city.
Mayor Ted Clugston agrees, to a point, but said the department has been responsive to private sector criticism and had been a “stabilizing force” in the development market.
The city still has some power and sway when it comes to bringing in and servicing new land, he said.
“It’s difficult to make the case (for annexation) that we need more land — we have a 100-year supply — but if they (developers) came to us, we’d look at it,” said Clugston.
“My understanding is that if a developer suggested it and the county brought it forward, they (Municipal Affairs) would consider it.”
Several other councillors this week voiced their support for the city’s involvement in land development.
The department will hold meetings with development and business community stakeholders next week to discuss the 2016 report.
For several years Hatters have also been worried about losing new construction and population to neighbouring jurisdictions.
Clugston told reporters this week the city could take a harder stance in servicing new developments on the outskirts and during the planning process.
For example, the prestige hamlet of Desert Blume has water and sewer agreements with the city that are reaching the capacity limit, said Clugston.
A new community beyond South Boundary Road would probably require access to the city’s storm water sewer system to make it more economically viable, said Sandford.
The city, county and the Town of Redcliff are set to renew the threeparty intermunicipal development plan in 2018.