City Sold Retail Space to First Capital Realty

 Is Retail Space Paid For Yet?

 I did a little digging and came across the following from the Nov. 9/08 post on this blog regards the sale of the retail space in the PNC downtown.

“It is recently reported that the purchaser to date put $350,000 down on this property with another $1.13 million becoming due this week and the balance of $2.3 million coming due Aug. 11/2010 or when the space is 85% leased. As of Nov. 7 interest becomes payable on the final amount owing @ 4.5% interest. These seem like generous terms.” 

These still seem like most generous terms to me with the city not being paid until the building is 85% rented. If you need any more examples of why the City of Nanaimo should NOT be in the real estate business you need look no further.

Not only did they not sell the space for the cost to construct, they agreed to extend financing terms that would be impossible to secure in the private sector. Try to get a bank to back you on those terms. Yes, the banker would laugh at you.

Does anyone know how much tax this piece of real estate was producing before the old buildings were torn down, and how many tax dollars are now being generated on the same footprint? A good question for your council to ask city staff?