A plot of land that’s been vacant for years is now back under the City of Calgary’s control after plans for a mixed-use development fell through.
The land surrounding the Westbrook LRT station was sold by the city in 2016 to Calgary-based Matco Development, which, at the time, intended to turn the area into a site that included residential, office and retail spaces.
That plan never came to fruition.
So, after selling it for $50.5 million eight years ago, the city bought it back this January for close to $43 million.
Within the original sale agreement, there was an option that allowed the city to reacquire the land.
In a statement sent to CBC News, the city said it decided to repurchase the land because a contractual building commitment was not fulfilled in time.
“While the intent of implementing building commitments is to encourage timely property development and support municipal objectives such as economic investment, job creation, tax revenue and housing goals, in this instance, the anticipated timeline was not met,” reads the statement from the city.
In the statement, the city said the details of the time frame are confidential.
When asked to comment, Matco’s vice-president of development Eileen Stan said the company concurred with the repurchase, and agreed with the city that the land could now more suitably be owned by other parties.
The development site is situated immediately above and surrounding the Westbrook LRT station, Calgary’s first underground transit stop that opened in 2012.
The close proximity to a train station is something area councillor Courtney Walcott says the city needs to take advantage of.
Rather than immediately reselling the land to another developer, Walcott says he would support the city looking for strategic partnerships to make sure the land is used to its highest value.
“I wasn’t here when the decision was made to sell, but that is something that I’d like to not see repeated,” said Walcott, who represents Ward 8.
“Any time there’s city land near a … transit station just like that, that changes the dynamic that we have when we have control over the land.”
Most of the four-hectare parcel of land at 17th Avenue and 33rd Street S.W. has been unused since Ernest Manning High School was torn down to accommodate the new West LRT line.
The city said administration will review the existing land use and outline plan, analyze market demand and marketability and come up with a strategy for a path forward to see the property redeveloped.