This is bad news for the City of Saskatoon for a variety of reasons. The one reason is that it provides funding for civic services and some of the profits were expected to pay of some of the growing city debt that our bridge building spree has cost us.
Long explained most of the land sale revenues go to paying Saskatoon Land expenses like servicing, marketing, land costs and administration.
However, since 2007 about $123 million from land sales has been redirected to pay for other civic initiatives, including another $4 million in the 2016 budget.
“There’s been a lot of benefits from the city being in the business of selling land,” Long said. “At the end of the day, it’s up to city council where the money goes.”
The other thing it means is that this is $100m less in development that is happening in Saskatoon. I have heard from realtors, contractors, and increasingly laid off or under employed trades people that the boom is over and they are struggling. Others are making plans to head back to British Columbia or Ontario. The grass may have been greener in Saskatoon for a while but the fall of oils and the stagnant mining industry has taken it’s toll on a lot of people in Saskatoon. This is just one of the many number of indicators that show us that things aren’t good right now in Saskatoon.