Town of Lacombe
Policies and Procedures

Purpose: 

As provided within the Town of Lacombe Corporate Plan, the Town "will continue to provide directly industrial development sites of flexible design and areas at the cost of developing the lands."  As well the "Town will ensure that new industrial areas are of a higher development standard than earlier parks."   

The Town sells land in order to facilitate industrial and commercial development within the Town.  Land is not to be sold for the purposes of speculation or resale by others and as such, it is a fundamental objective of the Town to ensure that land is developed for commercial or industrial use in a timely and substantive manner. 

Provisions:

1.       In this policy  

a)       "Chief Administrative Officer" shall mean that person appointed by Council under Bylaw 58 of the Town. 

b)       "Council" shall mean the municipal Council of the Town.  

c)       "Developable Area" shall mean that area of Land  

d)       "Land" shall mean any land which is developed or can be developed for industrial or commercial land use to which the Town has title or is entitled to acquire. 

e)       "Town" shall mean the Town of Lacombe 

2.       The prices for the sale of lands held by the Town are established in Schedule A of this Policy. 

3.       Sale of Land shall be subject to the following conditions: 

a)       Land shall only be sold to Purchasers who agree to construct a building on the Land; 

b)       Land shall not be sold to Purchasers who do not commit to build on the land; 

c)       It will be a condition precedent of any sale of Land that the Purchaser will build within the time set out in subparagraph (e) hereof; 

d)       The Purchaser shall construct a building on the Land complying in all respects with the provisions of the Development Permit issued by the Town, but in any event being of a size of not less than 3,000 sq ft (280 square meters).

e)       The Purchaser shall commence the construction of an approved building within 9 months of the date of execution of a Land Sale Agreement or the exercise of an Option under an Option to Purchase Agreement entered into with the Town and shall complete the approved building within 18 months of the date of execution of a Land Sale Agreement or the exercise of an Option under an Option to Purchase Agreement entered into with the Town. 

f)        The Purchaser shall enter into a Land Sales Agreement satisfactory to the Town.  

4.       The Purchase of Land may be made in any of the following ways: 

a)       A 10% non-refundable deposit with the Offer to Purchase with the balance including adjustments on closing.  Prior to closing, the Purchaser shall enter into a Land Sale Agreement. 

b)       A partially refundable 10% deposit to secure the land for up to 60 days with the balance including adjustments to be paid no later than 60 days from the time of deposit.  Prior to closing the Purchaser shall enter into a Land Sale Agreement.  Should the Purchaser fail to pay the balance owing, the Town shall be entitled to retain a $1,000.00 administration fee, returning the balance of the deposit to the Purchaser.  

c)       A partially refundable 10% deposit upon execution of an Option to Purchase Agreement satisfactory to the Town.  The maximum option period is to be 90 days.  If the Option is not exercised, the Town shall be entitled to retain $2,000.00 as an administration fee, returning the balance of the Option Fee to the Purchaser.  If the Option is exercised, the balance of the purchase price is may be paid in two equal installments, the first such installment being paid at the time the Option is exercised, at which time the Purchaser shall enter into a Land Sale Agreement, the second and final payment including adjustments is to be made on closing; 

d)       The Town shall pay a 5% commission to any realtor arranging the sale of Land, but only if the sale is completed.  

5.       Prior to completing a Land Sales Agreement, the Purchaser shall satisfy the Town that the Purchaser is aware and understands:  

a)       the conditions of the lands and the improvements and services that are provided as part of the sale of the lands 

b)       the improvements to the lands that may be required by the proposed development of the lands by the Purchaser  

6.       Offers to Purchase or Lease that contain conditions or terms other than required by this policy, shall be referred to Council.  However, notwithstanding the provisions of this Policy, the Chief Administrative Officer or the Economic Development Board may recommend to Council or Council may consider on its own initiative the terms and conditions of any sale or lease. 

7.                The Chief Administrative Officer, in the exercise of his or her discretion and acting reasonably, may:  

a)       relax or adjust the payment schedule set out in this Policy when he or she deems this advisable to promote a sale. 

b)       extend the date to commence or complete construction of a building when he or she considers there is good reason to do so. 

c)       lease land for periods of up to 2 years without condition, at an annual rate of 10% of the sales price for Land set out in Schedule A hereto or at such rates as Council may direct from time to time. 

8.       All deposits for the sale of land shall be held by the Town and shall be kept in an interest bearing account with interest to accrue to the benefit of the Purchaser.  Any overdue funds payable to the Town shall bear interest to the benefit of the Town at the rate of 10% per annum.   

Town of Lacombe
Land Sales Policy 69/5001
Schedule A

The Sales price for serviced industrial land within the Wolf Creek Industrial Park shall be calculated based on a price of $80,000 per acre for the period October 2, 2006 to December 31, 2006.

Price per acre shall rise to $110,000 effective January 1, 2007