Saskatoon River Landing deal seen as 'plausible'

The on-again, off-again development of some riverfront real estate in Saskatoon is back before city council, which is being asked to approve a financing deal that looks "plausible," according to the city manager.

The River Landing development, promoted as a new jewel for Saskatoon's skyline, was supposed to be built by Calgary-based Lake Placid Developments.

But a week ago it was announced that the company had left the project, selling its interest in the land to a Saskatoon firm, Victory Majors Investments.

River Landing has been touted as a $200-million condominium and office project.

City council is set to meet Wednesday to consider the fate of the development, in light of that change.

The city, which owns the property, has promised to sell the land to the developer but only if reliable financing is in place, something Lake Placid was never able to achieve despite several deadline extensions.

The new developer, controlled by local businessman and philanthropist Karim Nasser, has secured what city manager Murray Totland calls "conditional" financing.

The manager's report on the transaction was released Tuesday.

In the report, he says an external review of the paperwork surrounding the deal found there is "plausible support of the existence of conditional financing commitments and conditional intentions to consider financing totalling $62.5 million."

Despite the tepid assessment, the city manager is recommending city council allow the new developer to move forward on the project.

If council concurs, Nasser's company will have 15 days to come up with $5 million. If it does that, the city will transfer title of the riverfront land to Victory Majors Investments.

Saskatoon has already spent $82 million preparing the 14-hectare River Landing site for development. It has built new roads into the area, as well as finished pathways and parks.

The city council meeting is set to start at 4 p.m. CST.