Regina councillors want any deal for Capital Pointe land to include the city getting its money back

A trio of Regina councillors say they want the city to get its money back in any deal to sell the land connected to the failed Capital Pointe project.

And that it not become just a parking space.

Regina-based Royalty Developments Ltd. put forward an offer of $2.2 million in addition to the assumption of certain property taxes, documents from a mortgage trustee say.

A spokesperson for the city says the City of Regina is owed $2.2 million — a sum that includes the cost of filling the giant hole in at 1971 Albert St. and property taxes.

Ward 1 Coun. Barbara Young said she wants to make sure the city recoups the money it is owed "and that it not be a parking lot."

"We have filled the hole and now we have taxes that have to be paid on it," Young said. "So whoever buys it is going to have to deal with that in some way or another."

One of the conditions as part of the offer to purchase and agreement for sale is: "The satisfactory approval of the Purchaser to negotiate temporary parking with the City of Regina within 60 days of acceptance of this offer by both parties."

Ward 9 Coun. Jason Mancinelli said he wouldn't comment specifically on what is before the courts.

But Mancinelli said his first priority is to make sure the city recoups the money it's had to spend on the site in what he called a "fiasco."

"First and foremost is I want to make sure that this money is recouped by the city. That's an unfair outlay for the taxpayers money."

And he wants something of value built on the site.

"I'm hoping that there's been more than a parking lot there in the end because it is a very prominent corner in our city," he said.

"So whether it be some type of unique architecture on a small scale or something on a large scale, I just think it should be something nice and reflective [for that prominent spot]."

Ward 2 Coun. Bob Hawkins, whose first priority is also about recovering the city's money, said it's up to the owner of the property to make any rezoning requests, and that would take time.
"The owners should make a proper application and the existing processes within the city should be followed and that will require a Planning Commission and City Council approval," Hawkins said, adding that would likely take longer than 60 days.

Young said the state of the economy may dictate what is built on the site.

"This isn't a good time economically to build another office building in the city because there's a lot of empty spaces now, but maybe somebody else wants to build a hotel or something," Young said.

The Capital Pointe project was touted as a multi-million-dollar, 27-storey condo and hotel complex.

But the only work done on the site was a giant hole that the city eventually filled in for safety reasons.

The land was first posted for sale in April of this year for $8.5 million.

Back in June Regina Mayor Michael Fougere said since the city doesn't own the land it can't dictate what happens after they filled the hole.

But Fougere did say he wanted the lot to be developed.

"It's a gateway to downtown," Fougere said in June. "People I think really want to see it developed and it is a showcase of the city and hopefully someone will come by and say I've got a good idea here."

Coun. Young said there are a lot of creditors looking to get paid so they will have to let this work its way through the courts.

"I hope it doesn't sit there for years and years and hopefully something will happen," Young said. "Someone will buy it who can afford to put something on there."