Submitted by Eric on behalf of Planning and Development
Planning and Development received and email from Janet Maccubbin from the City of Calgary (Senior Sales Agent – Affordable Housing | Real Estate and Development Services). Janet has asked us to formally request to purchase the land according to Article 19 of our lease agreement. This will be done via a letter from the Board that Planning and Development is currently drafting.
As many of you know the lease says that we have the option to purchase the land at “fair market value,” which is different than the “book value” discussions we have been having. Janet confirmed that we are still discussing book value of $4.5 - $5.5 million (unfortunately Janet didn’t have the exact information at her finger tips, because she was working from home). However, this is the first time that we have heard a price from the City and it is very much what we have had in mind. Let’s hope it is on the lower end!
As a point of reference: the million dollars that we could have paid for the land in 1978 is now, in today’s dollars, valued at approximately $3.9 million. Meaning, we are clearly paying $1+ million more now than if we had purchased the land 42 years ago, but all the more reason to secure a sale now and not later in time.