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Another pitch coming to Elliot Lake council for Algo Centre Mall land

Councillors set to toss it around on Tuesday afternoon
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151 Manitoba Road, a 13-acre parcel of land where the infamous Algo Centre Mall once stood, will be the subject of a special Elliot Lake City Council meeting on Tuesday. Brent Sleightholm for ElliotLakeToday

Elliot Lake City Council will meet in special session Tuesday afternoon to consider another bid to acquire the former Algo Centre Mall 13-acre site adjacent to Elliot Lake City Hall.

The land is at 151 Manitoba Road, where the former mall once stood. A tragic structural failure caused the mall to collapse on June 23, 2012, resulting in the death of two women and injuries to dozens of others on site.

Last December (2018), a bid to purchase the land came before Elliot Lake City Council at the price of $950,000 plus a 5 per cent realty fee of $47,500. The plan failed, losing on three-all tie after Councillor Luc Cyr declared a conflict and then abstained from the debate.

Those in favour in the subsequent vote were Mayor Dan Marchisella, Councillors Tom Turner and Ed Pearce. Voting against the December proposal were Councillors Sandy Finamore, Norman Mann and Chris Patrie. At the time Mayor Dan Marchisella said "It was lost on a technicality."

Elliot Lake CAO Daniel Gagnon is set to present his analysis of the new plan at the scheduled meeting of Elliot Lake City Council Tuesday afternoon in a special meeting.

"Legal advice was sought and obtained at a meeting on March 6. At that time, council said it would purchase seven acres of the 13-acre Algoma Centre Mall site at an upset cost of $750,000," Gagnon said in an information package prepared for Elliot Lake city councillors

"Last year it was established the seller would retain five acres of land and the city would hold seven acres. In that context, the concern emerged that the 13-acre parcel must be severed in order to create the seven and five-acre parcels," he said. "More time is needed to clarify the shape and exact dimensions of the severed lot. That process will take some time and it is recommended that the city purchase the entire 13-acre parcel and undertake to do the severance and sell the five acres to the proponent for $150,000. The owner is prepared to commit to building up the residential /commercial mixed buildings on the five-acre parcel."

The CAO continued, "The seller purchased 151 Ontario Avenue from Eastwood Mall Inc., and the transaction closed last week on April 11. Based on this, there are no legal reasons why the agreement cannot be executed to fulfil the $150,000 over net purchase plus applicable taxes."

He went on, "The legal clause should be referred to the 2019 budget for detailed review to secure funding sources. There are two existing sources for this purchase - the community hub reserve fund worth $442,000 and the land sales / purchase reserve of $451,000."

The ultimate sale price of the five-acre parcel of land at $150,000 ($30,000 per acre) meets and exceeds the price established by Council for serviced municipal land in the commercial / industrial land profile set at $25,000 an acre, Gagnon said. 

"The city can carry the $150,000 for the time it takes for the severance."

Summing up, CAO Gagnon said, "Should the purchase be approved the City will want to secure and improve the site and will bring cost in the 2019 budget. As well, several steel gates, signs and lite posts must be removed along with rocks and gravel, grass and shrubs. Otherwise, there may be a need for new signage and access controlling measures."

The meeting to consider the plan to buy the former Algoma Centre Mall site is set for 5 p.m. Tuesday, April 16, at Elliot Lake City Hall.

Mr.Gagnon tells ElliotLakeToday part of the funding for the purchase of the could come from the reserve set aside for the Community Hub with tentative plans for a new arena, swimming pool, exercise and athletic facilities, a curling rink, administrative areas and arts facilities. However, it will be up to council to decide what use the city might make of the land.

EDITOR'S NOTE: An earlier verison of this story indicated that the former mall site would be used by the city for its long-planned Community Hub. CAO Daniel Gagnon has clarified that it will be up to council to decide what use the city makes of the site, if the purchase goes ahead.



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About the Author: Brent Sleightholm

As a reporter, Brent has covered everything from amateur and professional sports, to politics, entertainment, police and courts, to human interest stories and government issues
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