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The NDP say there’s ‘sketchy realty’ practices near the GTH, but a realtor disagrees

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NDP on land deal
NDP on land deal – Feb 17, 2016

REGINA – The NDP are once again questioning the government over paying $103,000 per acre for land near the Global Transportation Hub (GTH) for land required for the Regina Bypass.

On February 2, Opposition Leader Cam Broten sent a letter to Premier Brad Wall requesting a recall of the legislature.

Broten said he never received a reply, so he doubled down on Wednesday; sending recall request letters to Wall and Speaker of the Legislative Assembly Dan D’Autremont.

The NDP wants to publicly discuss the large gap in land prices near the GTH.

“This one parcel of land got a what looks like a very sweetheart deal for $103,000 per acre. Looking at the two pieces of land I don’t see differences,” Broten said.

“The difference is price, and Mr. Wall needs to explain why he’s comfortable with what he did.”

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The NDP put up two “Sketchy Real Estate” signs near the $103,000 per acre land and adjacent land, which was purchased at $11,000 per acre.

The Province declined commenting on this concern in person. They supplied a statement saying they will not recall the legislature and Wall believes the land acquisition was done “appropriately”.

Dave Parsons/Global News

Colliers International real estate broker Michael Kelsey however said the government could have paid more for the land.

“We got a whole different animal. You’ve got some designated industrial land inside the city of Regina, you’re no longer taking farmland in the RM,” he explained.

Kelsey said if he was helping broker the deal he would have asked for a higher price. Given the industrial real estate climate in 2013/14 he could have seen it sell for up to $150,000.

The GTH Question Goes to Ottawa.

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During question period on Tuesday the Federal NDP brought the controversy to the House of Commons.

Regina-Lewvan MP Erin Weir asked a question regarding the federal government supplying a $27 million in infrastructure funding for the GTH in 2007.

“Will the government of Canada undertake its own investigation to ensure that no federal funds were wasted in this suspicious Sask Party deal?” Weir asked.

Federal Infrastructure and Communities Minister Amarjeet Sohi replied it’s their role to support local decision making when providing infrastructure funding.

According to regulations laid out in Build Canada guidelines this type of funding must be used on a “tangible asset,” which means that while federal money will be used in the construction of the Regina Bypass, it will not be used for the acquisition of land.

“There’s various criteria on things that are eligible and things that are ineligible, and the purchase of land is definitely something that has never been allowed,” Paul Spasoff from the Ministry of Highways and Infrastructure explained. “Absolutely no federal money has gone into the land acquisition for the Regina Bypass project.”

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