City struggles to find developer for empty lot

A large downtown parking lot is destined to remain a parking lot for longer than expected after the City of Saskatoon failed to find a developer willing to pay full price for the $4.135 million expanse of asphalt north of 25th Street.

The city listed the 130-stall lot in early January with the hope of enticing a private company to erect a large multi-use building on it. Lower bids would be accepted if a buyer could not be found within 60 days, the city said at the time.

“We have had some interest in the site, but nothing that would lead to a final sale,” City of Saskatoon land director Frank Long said in an emailed statement this week. Long did not provide any additional detail about the sale process.

City administrators recommended selling the lot in December, with the caveat that it “remain for sale over-the-counter until an acceptable market price offer is received” if a full-price buyer could not be found in 60 days.

Any deal would be subject to conditions meant to ensure a project goes ahead, including a non-refundable five per cent deposit and a buyback clause, which would allow the city to regain ownership if the development stalls.

Long said at the time any proposal must conform to architectural and design controls but the property’s flexible zoning “allows for a lot of different types of uses and, more importantly, a mix of uses.”

Downtown real estate has been affected by the ailing provincial economy, resulting in a vacancy rate of around 16.5 per cent but “stable” rental rates, according to ICR Commercial Real Estate.

About 26 per cent of Saskatoon’s core consists of vacant parking lots, which generate revenue for landowners without the risk of a major development. Experts have said most are unlikely to be developed until the economy improves.