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Selling properties potential revenue source for Sudbury

The sale of city-owned properties could help add more than $1 million to city coffers, says Ward 11 Coun. Lynne Reynolds. “The city owns hundreds of properties, many of which were inherited through amalgamation,” Reynolds said.
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The city recently sold three industrial properties on Fielding Road, in Sudbury, to a local company called Perfetto Holding for $1.6 million.

The sale of city-owned properties could help add more than $1 million to city coffers, says Ward 11 Coun. Lynne Reynolds.

“The city owns hundreds of properties, many of which were inherited through amalgamation,” Reynolds said. “If we put our focus on the sale of properties we should be able to achieve more than $1 million.”

The city recently sold three industrial properties on Fielding Road, in Lively, to a local company called Perfetto Holding for $1.6 million.

The $1 million to which Reynolds refers would be property sales under the new council. The Fielding Road deal dates back to the previous council.

The former owners of those properties hadn't paid municipal taxes since the mid-1990s.

The sale did not cover the more than $2.7 million in back taxes they owed, but it did take the properties – which qualify as brownfields – off the city's hands.

With brownfields, whoever owns the land becomes responsible for any environmental issues, and potential remediation, that may arise in the future.

In May 2014, the three properties were available for a minimum bid of $2,236,658.79, $249,568.06 and $190,107.68, but failed to attract a buyer.

Still, Reynolds said the sale of the Lively properties sets a strong precedent for selling more properties in the future.

Council expects to receive a report soon that lists all properties owned by the City of Greater Sudbury and their values.

With that information at their fingertips, they will be better placed to decide which properties make the most sense to sell off.

“I think when council puts the focus on something, and says let's sell a million dollars worth of property by the end of the year, then they start looking around,” Reynolds said.

In a recent column for NorthernLife.ca, Sudbury Mayor Brian Bigger said the sale of city-owned properties will play an important part in building the city's reserve funds.

“It’s important to note that we have directed staff to find this money and return it to the reserves in 2015 through initiatives like attrition, benchmarking and the sale of property,” Bigger said in his column.

“I am confident that staff, with clear direction of council, will work to get us there. In fact, in the last week the City has has found almost $2 million through the sale of property. This money will be returned to the reserves, requiring us to now return approximately $4 million.”

Revenues from the sale of industrial lands go to the city's industrial strategy fund.