The City of Nanaimo will sell public land to facilitate development of auto sales and a proposed seniors’ care home in central Nanaimo.
The city announced it will sell 1.02 hectares at market price to Bowen Road Developments Ltd., which plans to demolish the old Madill building on site and redevelop.
Madill, a Nanaimo-based forestry equipment company, went into receivership in 2008 and its building and land was purchased for $2.9 million in 2010 by Bowen Road Developments, a company affiliated with Laird Wheaton.
The company plans to have a mix of buildings on the site, including a furniture store, auto sales and service and a seniors’ care home, a rezoning plan shows.
During an in-camera meeting in April, council gave approval-in-principle for the sale of two parcels of land adjacent to the Madill property, currently being leased by the developer and the B.C. SPCA.
“Disposal of surplus city assets is an important part of our asset management strategy,” said Nanaimo Coun. Jerry Hong in a press release. “The sale of these lands will also act as a catalyst to encourage the redevelopment of the former Madill property.”
This is not the first time the potential land sale has landed in front of politicians.
In an in-camera report, city staff told councillors redevelopment potential of the Madill property would be enhanced by consolidating two city-owned parcels, which would create a redevelopment site of 5.18 hectares. It was recommended staff notify the B.C. SPCA its lease would not be renewed and help the organization relocate. Once notice was provided, staff would contact Bowen Road Developments to discuss the opportunity to consolidate the parcels with the former Madill lands “to help revitalize the area.”
However, according to Bill Corsan, the city’s manager of real estate, the company didn’t want to buy the lands until they sorted out their development application, which was for a different project at that time with more retail.
A traffic impact study showed a lot of draw to the site and upgrades were needed to “pretty much all the major intersections in the area,” which would have been very expensive, said Corsan, who added a new intersection was also required at Rock City Road and the highway. The new proposal doesn’t have the same traffic impact and doesn’t need the upgrades, he said.
From a city perspective, he said this is a high-profile site in the middle of the city.
“We see the road network being improved through this, we see complimentary land uses, we see residential being introduced into this area of the city, which is good.”
Steve Laird, a representative of Bowen Road Developments, said there has been “very good co-operation” from the City of Nanaimo and the purchase of the two parcels are a more efficient use of the land.
The sale will go before council for formal approval June 13. A professional appraiser hired by the city valued the land at $1.3 million.