New settlement resolves long standing servicing agreement

A revised debt settlement agreement with J&P Bardahl Investments Ltd. was approved at the July 26 Swift Current City Council meeting, formally ending an outstanding serving agreement dating back to 2016.

Council thought they had resolved the situation with an agreement approved at their June 28 meeting, but a complication meant a new agreement had to be approved.

The City had been negotiating over the years with J&P Bardahl Investments over a servicing agreement which would cover the Bardahl portion of services provided to the Southside of Adams Street. This property behind Sportchek had an outstanding servicing amount of $460,000.

However, June’s settlement agreement met an unexpected twist which meant a new arrangement had to be sought.

“When we went to transfer the land it was discovered that Canadian Tire had a binding covenant on the land that was going to transfer,” Swift Current Mayor Al Bridal said of the previously unknown detail. “It was written up back in 2004-2005.”

The new agreement will result in J&P Bardahl Investments paying $400,000 cash for their share of the services. The City will rezone the property to R3 upon receipt of a $25,000 payment, with the balance payable upon the acceptance of their application for subdivision.

“This way here we actually get paid for all our services in cash. He’s already given us the $25,000 deposit with the first agreement…and the other $375,000 we will get that within the next month or two once his development comes through council and gets approved,” Bridal noted.

The property is currently designated as a holding district for future commercial development, so the new zoning will allow for high volume commercial development adjacent to Canadian Tire area and a range of residential properties along Adams Street.

J&P Bardahl Investments will be responsible for land improvements and increased ground elevations to bring it out of the 1:500 floodway status before lot plans and the new subdivision is finalized. Once a future agreement for servicing is completed the owner intends to name the area development Creekside Estates.

One portion of their original agreement has remained in place, and that involves J&P Bardahl Investments donating an 8.23 acre portion of the property to the city as a charitable donation. In exchange for this donation Bardahl will receive a $200,000 charitable donation receipt for the next five years.