City purchases Jade Restaurant for $293K for flood mitigation work

The purchases leave $175,000 in the city of Port Alberni's land sale reserve fund.

The city’s final property purchase for it’s Dry Creek flood mitigation work was finalized as of the end of July.

According to city manager Ken Watson, the city of Port Alberni spent $333,694 on purchasing two properties; $293,000 for Jade Restaurant and $40,694 for a derelict property on Fourth Avenue

The final price of Jade Restaurant was over double the initial $130,000 offer by the city.

Watson said that the restaurant price was negotiated by the city and its real estate agent.

“It was the offer the owner was willing to accept,” said Watson.

He added that the city was advised by its real estate agent that the cost of taking the matter to court would have been much higher and that choosing not to buy the building would have also cost the city.

“If we abandoned the project we would have to turn back $2 million in grants,” said Watson.

In addition to the two purchased lots, the city has negotiated “access license agreements for the duration of construction and ongoing operations and maintenance,” said director of finance Cathy Rothwell.

The access agreements are for two lots west of Third Avenue owned by Island Timberlands and Western Forest products and come at no cost to the city, Rothwell added.

The purchases leave $175,000 in the land sale reserve fund.

Dry Creek flood mitigation work has already begun and will be completed by Bowerman Excavating.