Downtown Saskatoon YMCA sale in the works for $2 million over assessed value

Saskatoon city council will have the final say, but the conditional sale of the city’s downtown YMCA is a good deal for both parties, according to city manager Jeff Jorgenson.

The facility will likely be sold for just over $8.5 million, about $2 million over the most recent assessed value.

During Wednesday’s governance and priorities committee meeting — at which councillors were presented with detailed and extensive Downtown Event and Entertainment District (DEED) concept plans — land manger Frank Long said a deal with the YMCA had been in the works for some time.

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“Assembling lands in this area has become more important, not just for the potential expansion of TCU (Place) but also for future parking and improved construction logistics for the project,” he explained.

Long said earlier this year, the final terms of a conditional sale were agreed upon by both parties. A refundable deposit of just over $887,000 has already been received by the YMCA, and another $2-million payment is expected in or before September.

“The remaining balance of approximately $5.6 million will be paid by the city on closing and title transfer, which can be triggered by either party with 180 days notice,” said Long.

The conditional agreement will allow the YMCA to remain in the building for the short term, and to continue offering programming for its members. The Y would also maintain upkeep of the building in the meantime.

A price tag of around $370,000 for eventual asbestos remediation to be shared between the city and the organization was reflected in the sale price.

Long told councillors the organization was not actively listing the building for sale, so a negotiated price over the appraised value was offered and accepted by administration.

“(That) is consistent with some of the other properties with buildings on them that we’ve acquired for this project in the area,” he added.

Mayor Charlie Clark read out the most recent assessed values for the property, including an assessed value in 2020 of $4.8 million. Another more recent property value assessment listed it at $6.52 million.

“Why are you recommending this agreement given … those assessments?” he asked.

Long said negotiating with the YMCA meant giving the organization an incentive to sell.

“One of the ways to do that was to come in slightly over the appraised value,” Long responded.

He also told Clark that the city wanted to lock in the price because the properties “could go up in value.”

“By locking in the value today, we lock in a value for the (DEED) project going forward and assemble the land and create a very good canvas for this project to be successful going forward,” said Long.

City manager Jeff Jorgenson said there was a lot of value for the city in buying the land and building, and at a price significantly lower than the one the YMCA initially wanted.

Clark said it was a deal he could defend to the public.

“With this agreement, we have locked in a price for today that will secure a plan for the future that this is an important parcel for our ability to expand TCU Place whether or not the DEED moves forward,” he said.

In the meantime, the YMCA’s Mike McKague said staff and parents had been notified of the conditional sale. The $2 million paid by the city in September will be used to invest in a new downtown child-care facility.

“We’re not going anywhere soon … We’re at least four more years downtown,” McKague added.