SCOTT SCHMIDT

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A proposed downtown development that fell through two years ago is back on the table for city council tonight.
Joel McNally, development manager for River Street Development Corporation, says his company has plans for the empty lot across from City Hall — 609 First St. S.E. — that will not only bring more jobs to the city but will also bring more residents to the downtown area.
The plan is to erect two 6 to 8 storey buildings on the site, one of which will be designated for commercial use, the other of which will be turned into an apartment complex. The development proposal is virtually the same project River Street pushed two years ago, but would have seen the property exchanged for just $1.
McNally says council changed its mind over the $1 price tag back then and the deal ultimately fell through.
“We were in discussions with the City (back then) and we had asked them for a couple of concessions as part of the purchase process,” says McNally. “They had decided that rather than (meeting those requests) they would offer the property for $1.
“Unfortunately it generated some controversy and ultimately scuttled the deal.”
Today, McNally says council’s asking price is approximately $400,000 for the property. Tonight they will review River Street’s newest offer, which is for $380,000.
“We’ve been in discussions with city council for a few months now and we’re hoping that tonight, they have enough information to take the deal into open council and vote for it,” says McNally. “The reason why the purchase is a little more complicated than usual is the City is planning on purchasing or leasing two floors of one of the buildings.”
The company no longer requests the same financial concessions as before because of some new downtown development incentives and McNally is confident council will look at this deal as a win-win for everyone. He says it could mean somewhere between 150 and 200 new jobs in the community, as well as more than 40 new families living downtown.
“We think it’s got an excellent profile and it will have brand new services because the city is just redoing First Street right now,” he says. “But mainly, it’s downtown. We’re big downtown boosters and we really want to create a high quality space that will attract new, strong businesses to the core.
“And we also are firm believers that in order for the downtown core to be revitalized, we need to bring residents into the area. People who will bring the area to life after (5 p.m.)”