Lacombe Mayor Grant Creasey (left) and Darcy Stingel from the Tricon Group (right) announced on Tuesday a land exchange agreement between the two organizations that they feel will be a win-win for Lacombe taxpayers. (rdnewsNow/Sheldon Spackman)

By rdnewsNOW staff

Strategic Planning

City of Lacombe calls land exchange deal a “win-win” for taxpayers

Feb 11, 2020 | 3:16 PM

The City of Lacombe has reached a deal with a local developer that it says will benefit taxpayers and revitalize key downtown properties.

The deal sees The Tricon Group purchase the former police station and current fire station building, as well as the former Provincial Building, from the city in exchange for Tricon’s property at 5046 56 Avenue, formerly the Parkland Regional Library building, and a $375,000 cash payment.

Under the deal, the Lacombe Fire Department will continue to operate in their current space as part of a lease-back agreement starting at $36,000 per year, until relocating to a new fire hall, which is anticipated for construction in 2023-24 as detailed in the City’s 10-year capital plan.

“This is a positive development for all parties involved,” says Mayor Grant Creasey. “At first glance the City may be exchanging two assets for one, but in reality there is much more to this agreement. We are trading closed doors and darkened windows for spaces that will immediately generate tax revenue, and once redeveloped, add to our vibrant downtown.

At one point the City of Lacombe had considered turning the former Provincial Building into a new city hall. Now, however, a new city hall is not part of Lacombe’s 10-year Capital Plan.

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“This agreement also releases the City from significant ongoing maintenance obligations for buildings that had no immediate municipal purpose,” Creasey added.

Chief Administrative Officer (CAO) Matthew Goudy says the operational costs of the former Provincial Building and current fire hall/former police station last year was well over $100,000.

Goudy says the land exchange is a win-win for both parties and for the community as a whole, given Tricon’s track record with other local projects such as the transformation of the former Empress Hotel and the new Lacombe Community Health Centre, where the Parkland Regional Library will be moving to.

“This is a great example of a public-private partnership delivering value to the community, thanks to the differing but complementary needs of the two entities,” explains Goudy. “The acquisition of the former Parkland Library site creates a large, continuous municipal land reserve in the heart of our community from City Hall to the Gary Moe Auto Group Sportsplex, which gives us flexibility to respond to opportunities in the future.”

Darcy Stingel, marketing coordinator for the Tricon Group, says their hope is to create beautiful and vibrant downtown properties through this deal.

“Our intent is not to disrupt fire services whatsoever, so all will continue as operating,” says Stingel. “Our key focus will be on the Provincial Building – an underperforming municipal asset that we will have designs for shortly,” he exclaims.

“We appreciate the history of the Provincial Building, we appreciate the businesses former and potential future that could operate out of that space, and we are taking into consideration best practices when utilizing the existing structure, as well as courting interest from interested parties,” he points out.

Officials note the deal is expected to close in March, and will impact the City’s 2020 Operational Budget.