City of Yorkton tweaks how it leases its land

“In May of 2021, in preparation for renewals of city-owned land leases, City Council considered a few proposed amendments to the Leasing of City Owned Lands Policy. The policy outlines the parameters for leasing of any city owned lands including farmland, donated, agricultural, general commercial and non-profit recreational use. Under current policy, lease terms are to be in four year cycles beginning on January 1 and ending on December 31. The first four-year term of leases are expiring December 31, of this year,” explained Jessica Matsalla - City Clerk with the City at the regular meeting of Yorkton Council.  

Previously the policy provided for three year terms, however to align better with revaluation years, Council approved an amendment to the policy in 2017. 

Matsalla added, feedback from current and potential agricultural land bidders is that a longer term (5-6 years) would be desirable for some of the crop cycles. 

To address implementing a more suitable lease term for the farm industry, an option is to permit the renewal for one additional four-year term. This would allow the renewal/review of the leases to remain aligned with revaluation years for the next round of bidders, secure revenue for almost a decade, and satisfy the request of the farmers working the land to have a longer term, she added. 

In 2017, the policy was amended to provide for a tendering process for agricultural lands to provide for a fair and competitive opportunity for bidders, as opposed to having a first come, first served flat rate process. Previously the city set agricultural land rental rates at $30/acre for arable land and $12/acre for hay land, explained Matsalla. 

“These rates were significantly below market and did not allow new parties to bid on parcels of land that they wanted to farm. The new process to tender these lands is much more equitable. In May of 2021, it was recommended that the tender process continue, but that a reserve bid price be established based on the most recent rental value median reported by the Saskatchewan Ministry of Agriculture Land Lease Survey,” she said. 

The City also donates some of its lands. 

Donated Land Lessees are as follows:

* The Health Foundation – Farming for Health Project Committee,

* The Yorkton Terriers Junior Booster Club,

* The Parkland College,

* The Western Development Museum. The new term was set at 10 years, and the intent is to continue with the lease as long as they are operating as a museum. 

The City has donated approximately $76,300 of ‘dollars in-kind to the community groups.

“Council discussed the process of donated lands, surrounding the equitability of the donation process,” said Matsalla. 

“The discussion included finding a way in the future to set parameters and criteria for the donation process (i.e. the outcome of the investment must directly benefit the community). The donation currently has gone to groups that have expressed the desire to farm the land, and who have the capacity and resources to do so. The proposed solution is to have an application process, with Council evaluating, based on criteria such as capability, submission of a business plan, and intent for the proceeds of the land to go towards betterment of the community of Yorkton through events and initiatives as supported by the Strategic Plan.” 

The City also has two long term leases where land is used for recreational purposes, Yellowhead Speedway and Millstone Raceway.