Innovation Park may be up for sale to schools

The Saskatchewan government is considering selling Innovation Place’s Saskatoon campus to the University of Saskatchewan and its Regina business park to the University of Regina — deals that could be worth tens of millions of dollars.

Postmedia News has learned discussions about a possible sale of the buildings — which are owned by Saskatchewan Opportunities Corp., a provincial Crown corporation, and built on land leased from the universities — have been ongoing since at least December.

Saskatchewan Opportunities Corp. (SOCO) president and CEO Van Isman subsequently confirmed the talks. He said similar discussions have occurred several times during the last two decades without a result, and the current talks are “very preliminary.”

“There’s been some discussions that have gone on. The university has expressed some interest (in buying the buildings) and the provincial government, I think, wants to explore it,” Isman said Friday.

“Whether or not something’s going to come to fruition or not, I don’t know, I really don’t know. That certainly remains to be seen. They’re significant built assets; there’s a lot of value there, and there’s always interest in terms of other parties.”

Innovation Place’s Saskatoon campus, which opened in 1980, consists of 20 buildings with 1.3 million square feet and occupied by 111 tenants. The Regina complex includes six buildings totalling 465,000 square feet and home to 27 tenants; it opened in 2000.

According to its latest annual report, SOCO’s assets are valued at $188 million. Isman said while he could not provide specific figures for legal reasons, $188 million is “not reflective” of the buildings’ value.

It’s unclear what will happen to SOCO should both campuses be sold. Isman said he expects most of the Crown corporation’s employees would stay on, as they have the experience and expertise needed to run the specialized facilities.

Crown Investments Corporation Minister Joe Hargrave declined an interview request. In a prepared statement, he said both universities have “expressed strong interest” in acquiring the research parks, and the government is working with them.

“Discussions at this time are at very preliminary stages. It is too early to speculate on any outcomes at this time,” the statement read. It did not address SOCO’s future should the deals be transacted.

Saskatchewan residents have historically been sensitive to Crown corporation issues. The Saskatchewan Party government came under fire last year for introducing a law, Bill 40, that would allow it to sell up to 49 per cent of a Crown corporation.

In November, the government bowed to pressure and repealed the section of the law allowing for the partial sale of a Crown corporation. Bill 40 still permits the government to “wind down” a Crown in its entirety if it chooses.

Provost Thomas Chase said the U of R will only proceed if a deal would be beneficial, but acknowledged that constructing new buildings is “incredibly expensive” and made more difficult by a dearth of capital in the university sector.

“We’re looking for something that’s affordable and sustainable that will meet the needs of students and researchers. Simple as that.”