THUNDER BAY — A city councillor wants to see the city examine getting out of the trailer park business, requesting a report on the potential sale of Hillcourt Estates.
The property has been a consistent money-maker for the city in recent years, and residents previously vocally opposed a sale.
However, Coun. Trevor Giertuga argues the city may be better off selling it to the private sector.
The 89-unit trailer park, located off of Rosslyn Road in the Neebing area, first opened in 1976 and was taken over by the city in 1994
Council previously considered selling the property, most recently in 2012, but ultimately voted to keep it off of the city’s surplus lands list.
At the time, staff advised council a buyer had approached the city to express interest in purchasing the park.
Residents had expressed concern that a private owner could impose higher fees, reduce maintenance, or even try to rezone the land.
When the city took ownership, the park suffered from a number of septic and drainage problems.
Director of development services Joel DePeuter said the city has since recovered what it spent addressing those issues, and now realizes a net profit of roughly $160,000 a year on the property.
That’s after accounting for annual operating expenses that typically range from $150,000 to $180,000, covering maintenance and contracted property management.
While the sale would rob the city of those annual revenues, Giertuga argues the one-time “influx of dollars” from selling the property could be more valuable. He speculated the property could have a value in the neighbourhood of $3 million.
He also noted the city has around $750,000 in reserve dollars allocated to Hillcourt Estates that could be spent on other municipal infrastructure needs.
“The question in my mind, and in other councillors’ minds, is what services should we be in — should we be in the landlord business?" he said in an interview. "I don’t think we should. There’s many associated risks in that business, and I think that’s something that should be left to the private sector.”
In terms of risks for the city, Giertuga pointed to the fact the units are on septic systems, saying “someone could get sick, something leaches into the water.”
He said he understands the idea is likely to be opposed by Hillcourt Estates residents, after seeing significant opposition in 2012.
“Quite a few people came forward, and I don’t blame them. The city has the deepest pockets around, so they would want us to be the landlords," he said.
Coun. Greg Johnsen, whose Neebing ward encompasses the Hillcourt Estates neighbourhood, said he's reserving judgement until hearing more information from staff, but has concerns over how a sale could affect residents.
“The motion is a little bit vague as to what happens after the potential sale, which is the most concerning thing," he said. “We as council aren’t just looking at money here, we’re looking at the neighbourhood, the people … We have to consider what impact it will have on them.”
If council wants to realize revenue by selling off properties, he also suggested it may want to first examine those that are not turning a profit.
“Certainly I can appreciate [Giertuga's] efforts to help out the city’s financial situation," he said. “There are other comparators out there that may be making the city less money, that might be possibly better to be sold.”
Johnsen said he intends to raise that point on Monday and possibly seek further information from staff.
Giertuga's motion seeks a report back from administration by July 24.
While council will debate Giertuga’s motion at Monday’s meeting, DePeuter said some information, like the value of the property, may be discussed in closed session.
