The price of existing commercial lots available from the City are going up.
“The cost of Infrastructure has increased significantly in the last four years and pricing in both Yellowhead Commercial and Gladstone Industrial Subdivisions has not changed,” explained a document circulate to Yorkton Council at its regular meeting Monday.
Lonnie Kaal, Director of Finance with the City said the current pricing was established in October 2008, with land in the Yellowhead Commercial Subdivision set at $280,000 an acre, with land in the Gladstone Industrial Subdivision at $70,000 per acre.
By contrast land in the Roundhouse Commercial Subdivision was set at $450,000 per acre in November 2012.
“Discussions with appraisers indicate that land prices for development have increased between 40 per cent and 60 per cent in the last four years. The local marketplace has seen raw land sell at $150,000/acre with serviced land at $350,000 acre. Individual sales are as high as $577,000 per acre for serviced commercial land.
The cost of servicing subdivisions; namely streets, curb, gutter, sidewalks, water & sewer lines, street lights and drainage has also increased. Numbers vary but generally engineering consultants advise that the cost of constructing infrastructure has increased 25 per cent to 40 per cent in the last four years. The variance depends upon salaries, availability of skilled workers, oil prices, construction material (e.g.: pipe, asphalt etc) and equipment operation that is very dependent on fuel prices,” detailed the report.
Kaal said as a result Administration was recommending prices on existing land be raised.
The pricing in Yellowhead Commercial be increased 25 per cent from $280,000/acre to $350,000/acre.
The pricing in Gladstone Industrial Park is low at $70,000/acre and was originally based on the low cost of construction some 20 plus years ago. In 2008 this rate was increased from $35,000/acre to $70,000/acre.
“We recognize that there is very little land left for sale in either of these subdivisions but the days when prices were based on cost, and did not change, are over. The current marketplace indicates that lot prices will need to be reviewed annually,” said the report.
Council unanimously approved the increased as recommended,