MOOSE JAW — Development of the proposed Hilton Hotel in downtown Moose Jaw appears to be picking up steam, as city hall and the developer have agreed to a land deal to further the project.
During its June 23 regular meeting, city council voted 6-0 to authorize city administration to create a street closure bylaw affecting a chunk of the 0 block of River Street West on the north side. This is so River Street Development Corp. — also known as 102071770 Saskatchewan Ltd. — can purchase a parcel for $1 for its project.
The sale is conditional upon the corporation purchasing four nearby lots. Furthermore, it must complete the subdivision and consolidation of the four lots to form a single parcel, while it must consolidate the remaining portion of a nearby property.
Also, the organization will be responsible for all related costs, such as for the street closure, subdivision, consolidation, land sale, title transfer and any required easement agreements.
Mayor James Murdock recused himself from the vote because he is connected to the corporation and has a financial interest. He also recused himself from two other items on the executive committee’s agenda that were in-camera, or behind closed doors, as the hotel developers made presentations.
This is the second land sale the city has made with the corporation, as in March 2024, council approved administration’s application to subdivide the west 150 feet of the 0 block of River Street West from the corporation's adjacent property for $290,000.
The affected parcel, 0.024 hectares (0.06 acres) in size, was originally intended as a turnaround — or “bulb out” as administration described it — for a previous hotel development in September 2012, where construction was required to start within 18 months of the approval, a council report said.
The construction deadline passed, and the developer asked for a two-year extension, but council approved only a one-year extension to September 2013, the document continued. Ultimately, the developer never constructed the turnaround or the hotel, while the parcel has remained legally designated for that purpose.
The municipality has no use for the parcel, which is not used as a road and serves no function, the report said. The corporation will acquire some of the land, while a portion of the road will remain as part of River Street, vested with the Crown, and the city will confirm the final boundaries through a legal survey.
Also, the city will preserve or protect any utilities through registered easements.
The report noted that the municipality and River Street Development Corp. engaged in negotiations in 2024, where the former agreed to sell the street portion if the latter acquired properties of Lot 34, Blk/Par 110, Plan Old96 Ext 53; Lot 33, Blk/Par 110, Plan Old96 Ext 52; Lot 32, Blk/Par 110, Plan Old96 Ext 51; and Lot 55, Blk/Par 110, Plan 99MJ06781 Ext 10.
Following the corporation’s acquisition of those properties and council’s approval of a street and lane closure bylaw, administration agreed to transfer Blk/Par S1, Plan 102065532 Ext 0 to the newly consolidated parcel, the document said.
There are several reasons why the city sold the land for $1, the report noted, including:
- The land is required for the future hotel development
- The city no longer requires the original turnaround
- The municipality did not incur any costs to acquire the extended street parcel in 2012
- The parcel is too small to be sold or developed independently
- The city has not identified any use for retaining the remnant parcel
- City hall recognized that the purchaser will incur costs for the subdivision and consolidation
Meanwhile, the estimated fees that the corporation could pay include $1,300 to the Ministry of Highways for consent to close and transfer the road and acquire a title transfer document, $250 to $750 to advertise the bylaw, $3,500 to $6,000 for subdivision costs, $450 to the city for the subdivision, $360 to Information Services Corporation (ISC) for the subdivision and unknown fees for land transfer/title consolidation.
City hall will issue a public notice to property owners within 90 metres that will include the legal land description, the closure’s purpose and instructions for how the public can comment before council approves the bylaw change, the report said.
The next regular council meeting is Monday, July 14.
