DIDSBURY - The Town of Didsbury has finalized the sale of the former AG Foods building to the local Home Hardware for $800,000, after buying the building from its previous owner for $1.1 million in 2019.
Although the sales agreement was signed in January, the sale itself did not become official until this month.
The town believes the $300,000 difference is actually an investment in the Shantz Crossing development on the town’s north side, said mayor Rhonda Hunter.
“An investment is what it is,” said Hunter. “It is an investment in our development and our growth. What we realize in development and assessment will add to tax revenue, and more importantly we will see Shantz Crossing grow and thrive and welcome new jobs, new shopping traffic, likely new residents.
“When we had the opportunity to expedite the building of Buy-Low Foods over in Shantz Crossing, council unanimously agreed it was an investment. When you start to get returns on an investment it is a good investment and that’s what we’ve seen already.”
Located at 2405 - 20th Street, the AG Foods building was sold to the Town of Didsbury by Buy-Low in 2019.
The total purchase price of $1.1 million was paid to facilitate the sale of Lot 9 in Shantz Crossing to develop the Buy-Low Foods store, she said.
Asked if she believes the new $800,000 sale price to the local Home Hardware is fair, she said yes.
“There was a lot of discussion on that,” said Hunter. “We didn’t feel that we had to sell it for the price. We felt it was a great decision, sell it at that to get the building occupied.
“The opportunity that we saw to sell to a great owner that is going to benefit. That is a fantastic location for Home Hardware and that’s a great tenant setting up shop.”
In his monthly report presented to council on July 13, Gorner said the proceeds from the sale of the AG buildings comes to $771,751, when the cost of contractual obligations to ensure a fully functioning HVAC system for the building and closing costs are deducted from the $800,000 sale price.
Other than having the HVAC system fully functioning, there are no other obligations or conditions attached to the sale to Home Hardware, said Hunter.