(CHAT News)

By Eli J. Ridder | @EliRidder

UPDATED

City of Medicine Hat selling old food bank building at $250K loss

Feb 5, 2024 | 7:09 PM

Medicine Hat will sell the old food bank building at half the price it bought it for in 2020.

That’s after city council voted in majority favour of Coun. Allison Van Dyke’s proposal to authorize staff to sell 532 South Railway St. “as is, where is” for land value at a recommended list price of $249,900.

City staff were directed at the Dec. 18 meeting to seek further information and return to council for a decision regarding a potential listing of the property.

That extra information-gathering did not change the initial recommendation, according to a report coming to council Monday.

The city acquired the building for $500,000 from the Medicine Hat and District Food Bank Association in 2020, according to a staff report.

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The purchase was part of a transaction approved by council that saw the food bank move into its current location for $1.3 million.

Coun. Robert Dumanowski questioned why the city is selling the property at such a loss.

Dumanowski acknowledged he was part of the previous council that approved the purchase of the building a few years ago.

He proposed holding onto the property for now, despite the $18,000 per year carrying costs, because of the potential value of the property’s location.

He was the only member of councillor to vote against the sale.

Energy, Land and Environment Managing Director Rachel Pancoast said if there was sufficient interest from the community there’s nothing stopping the city from selling it for more. But that interest does not exist, she said.

The building has served “numerous purposes” that staff said puts a limit on its marketability. Its mechanical systems were also recently rated as poor despite being in a structurally fair condition.

Periodic showings of the property by city staff based on ad hoc interest and through reaching out to prospective buyers has not resulted in any formal offer, staff said in December.

Given the condition of the building and the cost of the abatement, staff have recommended it’s sold as an “as is, where is” basis and anticipate the buyer would demolish the building.

Coun. Shila Sharps said she would rather sell the property now instead of holding on to the property and spending a large sum of money to fix the building up to code.

Dumanowski told CHAT News following the council meeting he believed the property still could have been sold at a higher price.

“It’s my opinion that, not only is that problematic from the standpoint of pricing when it comes to the public purse, but in the end, there’s bound to be other interested parties who would negate the need to do the abatement,” Dumanowski said.

“For me, it’s a little bit hurried and simplistic to discount it just to get it off the books rather than put it to another use or hold it for some future purpose.”