BARRHEAD - The Town of Barrhead has tentatively sold its remaining Schnieder Lands property on the west side of town.
Council agreed to sell the 11-acre property for an undisclosed amount to McCammon Reality Advisors following a July 25 in-camera session.
The sale will be final once the 180-day cooling-off period has passed, in which McCammon Realty Advisors has an opportunity to do its due diligence, which includes property evaluation, obtaining municipal zoning and development approval, and securing financing.
In an Aug. 3 interview, Town of Barrhead CEO Edward LeBlanc and director of development and legislative services Cheryl Callihoo stated that the municipality entered into negotiations with McCammon Reality in early March, and details were finalized shortly before the July 25 council meeting.
LeBlanc noted that the land is being sold unimproved in "as-is condition"; it is up to the developer to bring in any improvements, such as the construction of any roads as well as connecting to any utilities.
LeBlanc and Callihoo added that the property is zoned as direct control, which means the town council is the approving authority for any development proposal.
"It gives council more latitude," LeBlanc said. "(In a direct control zone) council can approve anything and everything."
This differs from the highway commercial, in which the adjacent property on the west side of Highway 33 is zoned as that includes businesses such as food services, restaurants, gas stations and retail outlets, including strip malls.
History of the property
The Schnieder Lands were actually two properties, one located near Shepherd's Care, while the second was in the same general area but adjacent to Highway 33. It is this property that McCammon Reality Advisors purchased.
The town purchased the original five-acre parcel in 2013 as the location for a new pool. About two years later, the municipality bought the second, larger parcel, roughly 11-acre property next to the highway, north of DeHerdt Gardens.
Mayor Dave McKenzie told the Barrhead Leader in an Aug. 4 interview that when the opportunity to buy the second Schnieder Lands property, the town jumped on it.
"At the time the municipality did not have a lot of property and had nothing to offer if a business or developer were interested in some type of commercial property."
Unfortunately, difficulties with Alberta Transportation in getting highway access to the property and then the pandemic and inflated building costs put a damper on development in general.
McKenzie added that in 2020, the municipality decided they needed to cast a larger net and enlisted Edmonton-based realty company Cushman and Wakefield (the same company the County of Barrhead is using for its Kiel Industrial Park) to market the property.
In 2022, the municipality sold the smaller property, which had been home to Barrhead's Community Garden, to a local developer, which plans to put up a residential development on the property.
McKenzie noted that COVID-19 and the increases in the cost of building materials delayed their plans, but he understands through discussions with administration that the developer plans to start construction next spring.
"The sale gets (the town) out of the developer business, which is something we don't want to be in, and we are excited about the potential development and long-term opportunities that will bring for the community," he said. "The land offers a variety of commercial development possibilities."
Plans for the property
McCammon Reality Advisors owner Jeff McCammon said he is excited about the property's potential, adding he hopes to be able to build a mini portfolio of income-producing commercial real estate.
He noted that when he first looked at the property, he believed it to be one block.
However, upon further inspection, McCammon said it was evident the property could be divided into three or four distinct properties, which he would look for tenants for.
"I'll be looking for retail and short-term industrial tenants," he said, adding he would start by asking local businesses if they would like to move or expand to the properties. "Only after canvassing the local business will I have my leasing team try to find tenants outside the community."
He noted that although his company is based in Edmonton, he considers himself a Barrhead-area resident, saying he has a residence a few minutes south of town.
"Barrhead is my community. I grew up here. I buy my vehicles (in Barrhead); it is where I buy most of my groceries. Barrhead is my home," he said.
As such, McCammon added he hopes to be able to collaborate with the municipality to help him not only benefit his business but will benefit the community as a whole.
For instance, he said he knows the municipality has been attempting to another access route into the neighbourhood.
"There is some roadwork to be done through this property that would help solve a lot of access issues for the town," McCammon said, adding getting approval for the roadwork would be part of the due diligence process.
Barry Kerton, TownandCountryToday.com
