Brightenview changes its mind about buying land at the GTH

CBChas learned that megamalldeveloper BrightenviewDevelopmentInternational has had a change of heart regardingplans to purchase additional land at the troubled Global Transportation Hub.

During the 2016 election campaign, then-Premier Brad Wall regularly touted the sale of 30 acres of GTHland to the company for $256,000 an acre as proof that "taxpayers are making money" at the government owned transportation and logistics hub.

But more than two years after announcing the sale,Brightenviewhas only taken title to ten of those acres, where it is currently building a warehouse. Nowit appears it may not be purchasing the rest.

In an email to CBC, a spokesperson for the GTHwrote "Brightenviewrecently made a business decision to lease additional land instead of the purchase they initially planned."

"While a change from the original land sale agreement, we welcomed their continued investment and promotion of Saskatchewan."

CBCasked Brightenviewwhy it had changed its plans but the company hasn't responded.

GTHnow a landlord

Instead of Brightenview buying additional land, the GTHis purchasing property and then leasing it to Brightenview.

"In order to accommodate the lease arrangement, title to these 10 acres was transferred last month from Ministry of Highways to theGTH," the spokesperson wrote.

In February 2016,Brightenviewhad agreed in principle to buy the land for $256,000 an acre, which would amount to $2.56m for the 10-acre parcel.

The GTH says it will paythe ministry $260,000 for that 10-acre parcel, the equivalent of $26,000 an acre.

The GTHsays Brightenview's lease rate will be calculated based on the $256,000-an-acre valuation.

When asked about Brightenview's plans for the additional 10 acres, the GTHreferred CBC to Brightenviewofficials who haven't replied to emails.

First Brightenview tenants expected this spring

Brightenview has erected what the GTH's website describes as an "80,000 square-foot warehouse that will anchor Brightenview Developments International Inc.'s trade complex" on the 10 acres the companyoriginallypurchased.

The building will house a series of small condo-style units where Chinese wholesalers will be able to display their wares to North American retailers.Those wholesalers will be marketing a range of products such ashome decor, consumer electronics and office supplies.

According to the GTH, Brightenview has already sold 120 of those units and "the first group of tenants are anticipated this spring."