Fougere pushes for new neighbourhood in southeast

The city is getting into the development biz again to see lands in southeast Regina turned into a new neighbourhood.

Executive committee approved on Wednesday contracting a land development manager to work with city staff to develop 128 acres of land to the north of Greens on Gardiner and east of Windsor Park. It could have up to 980 housing units.

Bought from the Saskatchewan Housing Corporation in 2012 for $7.76 million, the land is now valued at $29 million.

“Generally speaking, the reason to do this is because there is a return on investment by the city by partnering with someone to be the developer for the city,” said Mayor Michael Fougere.

The city expects a net revenue of $58 million when the land is developed. With this approach, the city keeps 95 per cent of profits. Fougere could not yet say what the revenue will be devoted to.

Meanwhile, the city expects to invest $22.6 million in the project — paid through reserve funds — before revenue is returned.

“The risk of this project is associated with how quickly the return on the investment will occur,” a city report reads. The city estimates revenue will begin flowing after two years, with a positive cash flow after three.

One risk is housing demand, which has slowed recently.

“I worry about us overdeveloping,” said Coun. Sharron Bryce.

Fougere countered that he thinks there’s an “appetite” in the city to see the southeast lands developed.

Not in the proposed manner, says Harvard Developments.

“I think the concern is really that there are options available to council that haven’t really been fully explored,” said Chad Jedlic, residential land manager with Harvard.

He wanted councillors to reconsider two other development options presented in the southeast lands report: selling the land or a joint venture with a private developer.

Jedlic questioned the report’s risk evaluation and revenue estimates. He also wondered whether the chosen approach sends a negative message to private developers.

Fougere, though, was unfazed.

“I don’t think you saw a lot of people upset about this one,” he said.

Coun. Shawn Fraser did, however, wish that the idea of creating a municipal land development corporation be addressed before a decision was made on how to proceed with the southeast lands.

In September, staff presented a report detailing a municipal corporation to develop city-owned land, including the southeast area. At the time, executive committee sent it back for more work. Staff could not provide an update Wednesday on when the matter would come back for discussion.

“I think it’s the best way for the city to deal with its own land holdings,” said Fraser.

“Like it or not, we’re in the game, so to speak, and, to me, doing it through a public land corporation is sort of the most transparent way to do it and also the potential for the most profits to be returned to the city.”

No other councillors agreed to defer the southeast lands decision until after the corporation idea returned to committee.

“I’m not sure there’s an appetite to have a land development corporation,” said Fougere. “We have a small ownership of land. We are not going out to purchase land. We are not experts in land development — that’s not our core business.”

If passed by city council on March 23, staff expect that work on the southeast lands can begin this year. Another 129 acres to the north of the area discussed on Wednesday will be developed at a later time.

“I THINK THE CONCERN IS REALLY THAT THERE ARE OPTIONS AVAILABLE TO COUNCIL THAT HAVEN’T REALLY BEEN FULLY EXPLORED.” CHAD JEDLIC