The Alberta government is making Crown land available to residential developers in the Fort McMurray region, in anticipation of the next period of economic growth.
The Alberta government is making Crown land available to residential developers in the Fort McMurray region, in anticipation of the next period of economic growth.
“I am very pleased to have the province announce the first five parcels of land available for development in the North Parsons Creek area,” said Melissa Blake, mayor of the Regional Municipality of Wood Buffalo, which includes Fort McMurray.
“Land has obviously been something that is very critical for our region and, as we continue to grow, this is something that is going to serve us very well in transitioning from our exhausted supply of land into what comes next and that is something that is very exciting.”
The first five parcels of land in what will become the Parsons Creek community are now for sale to developers.
The release of the land is about a year ahead of schedule and the offer to purchase closes on Feb. 28.
Development of the parcels is expected to be completed in about two years.
“These first 135 acres for sale are part of what will be an approximately 1,000-acre community of 24,000 residents in 8,000 homes when it is completely built,” said Jonathan Denis, Minister of Housing and Urban Affairs.
“Not only is this investment good for the Fort McMurray region, it will benefit the rest of Alberta and Canada by helping prepare the ground for future growth and prosperity of the energy sector,” he said.
The sizes of the parcels range from 15 to 50 acres and no offer under $450,000 an acre will be considered.
The government is taking measures to ensure the land is developed quickly and there is no incentive to hold onto it.
“To help ensure the land is ready and available for sale, we have a continued land release strategy, which makes it uneconomical to hold onto the land for any period of time,” said Dan Laville, spokesperson with the Ministry of Housing and Urban Affairs.
“We will release more land over a period of time to reduce the chance of people holding on to the land and not making it available to the public.”
Each buyer is limited to two parcels of land, which means there will be a minimum of three buyers.
A postponement and access agreement will also allow buyers to get financing and start the development process, before they have full ownership.
The province will use land sale revenue to build infrastructure such as roads, schools and community facilities, and is initially contributing $166 million to develop the first section of Parsons Creek.
“This release will help to offset our projected deficit of land for new housing starts, at the same time as our local economy appears to be ramping up once again,” said Blake.
A study produced by the Wood Buffalo Housing and Development Corporation (WBHDC) in 2008 estimated that the projected need for new homes in Fort McMurray would be 15,500 by 2010.
If all available land in 2009 was developed, 8,500 homes could be built.
According to the WBHDC, there would be a predicted shortfall of 2,300 homes at market prices exceeding $400,000 and 4,700 homes at market prices below $400,000 in 2010.
This means Fort McMurray will need 4,700 affordable homes by 2010.
WBHDC was scheduled to develop 800 new affordable homes by 2010, which leaves a shortfall of 3,900 units.
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