Portage la Prairie city council paved the way for a potential $25-million residential development in the city's southeast end with the conditional sale of land to a builder.

At its meeting Monday, council voted unanimously to sell a six-acre parcel of land east of 9th Street SE — located east of the Lions Prairie Manor and south of Good Shepherd Roman Catholic Church — for $310,500 on the condition that the purchaser, Broadstreet Properties, enters into a development agreement with the city.

According to a Portage Regional Economic Development (PRED) report to council, Broadstreet Properties plans on building a four storey, 128 suite apartment building and one or two storey townhouses for an additional 40 suites on adjacent three acre lots.

In the development agreement, the city would assume responsibility of the upfront costs of infrastructure, including: the extension of Dufferin Avenue East and connection of water and sewer services from 9th Street SE to the six-acre parcel.

“This goes back to some time ago where the city did entertain the sale of the property that's currently on unserviced land,” Finance, Legislative and Properties committee chair Brent Budz says. “The purchaser was looking for the opportunity to work with the city on the development of infrastructure required to support their investment.”

PRED's report explains at a May 8 in-camera meeting of city council there was majority support to sell the six-acre, vacant parcel to Broadstreet Properties for the assessed value of $34,272.

“(The developer) came back and negotiated a different approach through (executive director Vern May) at PRED,” Budz explains. “And council did approve the city playing a lead role in the development of the water, sewer and infrastructure ... to provide the purchaser with serviced land.”

The estimated cost of the city's infrastructure investment is not yet finalized, according to Coun. Budz. PRED's report explains the cost recovery on the city's investment will be between three to five years through new tax revenue forecast at $346,983 annually.

PRED executive director Vern May says the planning process for development with Portage la Prairie Planning District will begin this week. The proposed timeline calls for the city to complete its infrastructure development by spring 2018; and Broadstreet Properties plans to start construction in June 2018.

As for completion, May didn't have a firm date, but expects its linked closely with the anticipated opening of the Roquette pea processing facility in the RM of Portage la Prairie in 2019.

“The interest for this project is definitely closely related to Roquette,” May explains. “They're anticipating we're going to have 150 new workers, new families coming to the community. Their completion timeline probably lines up pretty closely to that April 2019 start of the Roquette operation.”

Budz adds, this development is an example of economic spin-off coming to region in wake of the $400-million Roquette pea plant construction project.

“There are other factors and spin-offs the city needs to be prepared for and I think this is the start of hopefully many to come,” Coun. Budz notes. “... This is what the side benefit of having major industry coming to your city and region is all about. We're very excited about it.”

The development agreement between the city of Portage la Prairie and Broadstreet Properties still needs to be finalized.