County of Stettler won’t sell Erskine lots for half price

Stu Salkeld,
Local Journalism Initiative Reporter

The County of Stettler turned down an offer for two vacant hamlet lots that was effectively half the market value. The decision was made at the Aug. 14 regular meeting of council.

Councillors pondered an offer for two vacant lots located in the Hamlet of Erskine; the offer was presented by Tax Clerk Sharon Larson. “An offer to purchase two lots located in the Hamlet of Erskine – Plan 1623372, Block 3, Lots 4 and 5 has been received,” stated the agenda memo.

“Council set an asking price of $22,880 for each residential lot in Plan 1623372 March 13, 2024. Lots 4 and 5 are 8,160 square metres in size each, vacant, and the (market value) on lot 5 of $21,550 and lot 4 of $21,550.

“The lot is currently zoned hamlet residential.

“Council accepted an offer in 2023 for $20,000 for Plan 1623372, Block 3, Lot 2. The prospective purchaser is looking at building on property.”

It was clarified during discussion the offer was $20,000 for both lots; in effect, $10,000 for each lot which was less than half of both the county’s asking price and each lot’s market value.

Larson pointed out that since the offer was less than market value the Municipal Government Act (MGA) dictates the county can’t accept said offer until it’s been publicly advertised for two weeks and a 60-day waiting period has ended.

It was noted the 60-day period gives the public a chance to comment on their property being sold for less than market value; the public can actually petition that the offer be rejected.

Larson noted, though, that since the offer included intention to build, the lots would eventually generate tax revenue for the county. It was noted the lots are located on the east side of Erskine.

It was also noted in the report that the purchaser was asking that electrical service to the lots be brought up to code at the county’s expense. Staff confirmed power had already been installed up to the property line.

Councillors spent some time discussing the two week advertising period and the 60-day wait period.

Coun. James Nibourg seemed concerned that such a wait was unreasonable. “That is not the speed of business,” said Nibourg, adding that waiting over two months to buy property, “sucks.”

Councillors discussed how a public auction of property may allow purchasers to avoid the 60-day waiting period.

Larson stated these specific lots had been listed with a realtor and didn’t sell.

Director of Municipal Services Andrew Brysiuk pointed out the waiting period kicks in because the offer was below market value; offers at market value don’t include a wait period.

Eventually Nibourg stated he felt the offer should be turned down anyway. “I think that is a little bit too low,” said Nibourg.

Coun. Dave Grover agreed, stating he wouldn’t approve an offer of $10,000 per lot.

Councillors unanimously passed a resolution declining the offer for the two vacant Erskine lots.

Tax sale

Councillors approved a date of Dec. 6 for the 2024 tax recovery auction. Larson noted in her report that under MGA authority properties that had unpaid tax bills and met the criteria would go to auction for tax recovery.

Staff noted that for those properties slated to be auctioned on that date all other avenues for collecting the unpaid tax bills had been exhausted unsuccessfully.

Court order

After a private closed session to discuss a Court of King’s Bench order, councillors re-entered the public meeting where Coun. Nibourg made a motion to authorize staff to seek a court order that property located at 211 5th Street in the Hamlet of Gadsby be brought into compliance with the County of Stettler’s nuisance bylaw.

That motion was unanimously passed.

Stu Salkeld,
Local Journalism Initiative Reporter
East Central Alberta Review