Residential lots sell for $40,000 to $44,500
August 13, 2013, 1:50 am
Kevin Weedmark
The town of Moosomin sold three residential lots on the former Moosomin Union Hospital property at auction Thursday, with two standard lots selling for $40,000 each and one larger lot selling for $44,500.
Ten lots were on offer-nine all similar in size and one larger lot. Five of the lots face Cook Road, and five face an extension of Gertie Street between Mark Avenue and Windover Avenue that will be known as Hussein Drive in honor of former Moosomin physician Dr. Shaukat Hussein.
One buyer bought two of the standard lots, about 80x100, for the reserve price of $40,000 each, and another buyer bought the one larger lot on offer for $44,500.
The three buyers must build on the lots within a year or they won't receive title to them.
The town has set minimum requirements for homes in the development-they must be at least 1,300 square feet with a minimum two-car garage.
Mayor Larry Tomlinson was expecting more interest in the auction.
"I was surprised that there weren't more bidders," he said Friday. "I didn't think we would sell them all, but I thought we would sell more than that. We had a lot of inquiries beforehand. A lot of them measured lots and seemed to be interested, so I don't know why they weren't there to bid."
Council will determine how to price the remaining seven lots in the development, but the mayor expects they will be priced higher than the auction price.
"It'll be up to council, but I can see them going up from there," he said.
The town had set a reserve bid of $40,000 at the auction to cover the cost of developing the lots and servicing them. The price includes the cost of pavement and curbs for all lots.
"I can't see the price going down," Tomlinson said. "The $40,000 is pretty close to cost. As Terry (Tilley, the auctioneer) said last night, that's a wholesale cost on them."
Tomlinson said the town is looking at possibilities for developing new lots once the remaining seven lots on the former hospital property are sold.
"We're looking at some other possibilities, but there's nothing concrete at all," he said.
