The Town of Vermilion has returned the price of its Junction Sixteen 41 lots to their original sale price.
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The motion was brought forward to council as the current of $130,000 sale price on the lots expired on May 1.
The original price for the lots was between $380,000 – $420,000 before being reduced by council. Interest in the lots has increased.
“Interest within this business park has increased since the price has been lowered,” said Mary Lee Prior, Economic Development manager.
The recommendation brought forward for council consideration is to extend the sale price of $130,000 to keep the momentum on these pieces of land going.
The motion was initially made to extend the price until Dec. 31 by Coun. Robert Pulyk.
The cost to develop an acre at Junction Sixteen 41 is $144,606.73, which became a point of discussion around council table.
“I don’t think I would be comfortable decreasing the price lower than the development input cost at a minimum,” said Deputy Mayor Joshua Rayment.
“I think we should be asking more. If we get the right person in, they’ll pay more, we’ve experienced that.”
He says they are prime pieces of real estate.
“I think if someone’s really interested in these lots, I don’t know if that price is going to deter them,” said Rayment. “They’re highway frontage lots (and) have tons of exposure. They’re good quality land, they’re nice to build on.”
The issue of being below the development cost was something Coun. Robert Snow suggested a solution for.
“We’re already giving a really good deal. We need to be at least $144,000. I would suggest $150,000 would be a pretty fair price,” he said.
A motion was brought forward to postpone the motion until more information is brought forward. Administration clarified the sale price is only in effect until May 1 when prices return to the $380,000 – $420,000 range.
“Perfect, hopefully somebody buys them at that,” said Rayment.
A land sale policy is currently in the works by administration and will set parameters when selling and negotiating land prices. The item is expected to return at one of the next meetings.
Pulyk pointed out the need to change all signage if the prices change.
“That means we’re going to need to change all the information that’s out there, as well as the billboard in that area,” he said.
Council continued discussion around the item and Snow suggested extending the price.
“I think for simplicity’s sake, if we have to wait one more meeting, my suggestion would be to keep it at the price we have currently,” he said.
Snow’s concern is the price may change too many times in a short period of time.
As council continued to discuss the motion, Pulyk suggested extending the sale price until the end of the month to give administration time to create the policy to the original motion to postpone the item that’s still on the table.
Council voted in favour of postponing the decision, which now brings the sale price of the lots back up to the original $380,000 – $420,000.
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