By rdnewsNOW staff

Ponoka council accepts offer to purchase Kinsmen Community Centre

Feb 22, 2019 | 12:49 PM

Ponoka Town council has accepted an offer to purchase the underutilized Kinsmen Community Centre and approximately 1.26 acres of surrounding land used for parking. 

At its regular meeting Feb. 12, council passed a resolution confirming its intent to sell the facility in accordance with the Town’s Land Disposition Policy, accepting an offer of $510,000 from Cash Foods Ltd.

Town officials say the sale of the property is subject to the execution of a sale and construction agreement between the Town and Cash Foods Ltd. The agreement, which is being prepared by the Town solicitor, will be reviewed by the Town and purchaser and then brought back to Council for endorsement. 

According to officials, the Kinsmen Community Centre property was declared Council at its January 22 meeting to be surplus to the needs of Ponoka. The property was then advertised on the Town website and on the public notice board at the Town Office as surplus property with an appraised value of $500,000, as established by an independent qualified appraiser in August 2018.

The sale and construction agreement is expected to outline the purchaser’s obligations to renovate and utilize the property for its intended purpose as commercial and retail space.

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However, before Cash Foods can begin developing the property, it will be required under the sale and construction agreement to apply for subdivision of the Kinsmen Community Centre property from the adjacent Seniors Centre building and land which is also owned by the Town. Following subdivision, application and approval for development and building permits will also be required.

“The reason for selling the Kinsmen Community Centre is because the building has consistently been underutilized and has been posting operating losses for several years,” says Town of Ponoka Mayor Rick Bonnett, in a press release.

He notes the facility is an aging building with no future plans for Improvements. Financials from 2013 to the end of 2018 show an annual operating deficit for the Kinsmen Community Centre averaging $15,300 per year.

“Council has been stating for some time that we want to liquidate properties that are losing money and are underutilized,” Bonnett continues. ”Selling the building to Cash Foods will increase the amount of commercial and retail activity downtown, bringing more people to shop and work in Downtown Ponoka. We received a fair purchase offer for the building that is above the property’s appraised value, and the sale will generate new assessment and increased tax income for the Town going forward.”  

Town officials add facility usage records in 2018 show that almost half of bookings (79) at the Kinsmen Community Centre were by the Town of Ponoka for events such as open houses and meetings. It’s also noted multi-use space in the new Ponoka Civic Building can now accommodate the Town’s space requirement for these types of events. 

In 2018, 81 private bookings occurred at the Kinsmen Community Centre, with a low of only one booking in August and a high of 12 bookings in October.

Mayor Bonnett further points-out there are other facilities in Ponoka and the surrounding area to meet the needs of community organizations and individuals who previously booked the Kinsmen Centre to host events and functions.

These alternative facilities include the Hudson’s Green Community Activity Centre, the Royal Canadian Legion Branch 66, the Stagecoach Saloon on the Stampede grounds, the Calnash Trucking Ag Event Centre, the Moose Hall, and various halls operated by churches and service clubs in Ponoka.

(With files from the Town of Ponoka)