The City of Moose Jaw is getting out of the condominium business, selling its share of the Timothy Eaton Gardens building to the Moose Jaw Non-Profit Housing Corporation.
City council voted 6-1 on Monday night for the sale to be executed on Jan. 1, 2022, for $1.
The city was the registered owner of what was known as “Unit 1” in a two-owner/two-unit Condo Corporation at Timothy Eaton Gardens.
Unit 2 was owned by Moose Jaw Non-Profit Housing Corporation.
The city-owned 55 per cent of the property and leased the entirety of Unit 1 to the Moose Jaw & District Senior Citizens Association, Vision Travel and IG Wealth Management. Moose Jaw Non-Profit Housing Corporation's 45 per cent ownership of the property is being used for low-income senior housing.
The Moose Jaw Non-Profit Housing Corporation will receive a five-year property tax exemption, but the senior citizens association must be allowed to continue its operations in the building.
“A condition of the tax exemption is that the seniors remain there, so it's a very important piece so everyone is aware and no one has any issues,” said Manager of Economic Development Jim Dixon.
The other two tenants have been made aware of the ownership change and will continue to operate where they are.
For the majority of the city councillors, they were happy to get out of the deal as the city isn’t in the condominium business and the Moose Jaw Non-Profit House Corporation would be better equipped to be landlords.
“To subsidize and pay for some of the upgrades that are required at that building, other citizens within the city may not be happy to be paying that bill,” said Coun. Jamey Logan.
“So, I think this is in the best interest of everybody in my opinion, in this particular deal. The agreement is going to benefit both parties.”
Coun. Crystal Froese added that this was a deal that the city had to get out of.
“This was one of the most complex agreements I think I've ever seen and I really don't think it benefited the city or the people on the other side of the table,” she said.
The only councillor who opposed the deal was Heather Eby, who simply stated she was “just not in favour of it” when giving her opinion.