Three downtown city lots that were up for sale are being taken off the market as planners reconfigure the property lines of the site, turning it into two in the hopes of finding a buyer.

At a noon meeting of city council and senior management officials Wednesday, planning manager Mike Gau presented the proposal for the site on the former Motorways trucking property along Second Avenue.

The currently three properties are between Black Street and Keish Street.

They measure about 1,692 square metres for the lot at Black and Second, 1,428 square metres for the property on the corner of Keish and Second, and at 1,431 square metres for the middle property, all including the utility easement running through the sites.

As Gau told council, the limited interest officials have heard from potential buyers has shown the easement is hindering the sale. The properties, along with other properties at the Motorways site, have been for sale since 2008.

"Still, they're not selling,” Gau said.

Prices on the Motorways site are set at minimums of $290,000 to $651,000, depending on the lot.

Only one property has had a deposit put down on it for a site at Black Street and First Avenue, though city officials aren't releasing details on that because no sales agreement has been reached yet.

With the exception of some developments like a deck for a restaurant, businesses are extremely limited in how they can use the easements, with structures not able to be built over them.

Finding buyers for the three lots the city is now taking off the market has proved especially difficult due to the utility easement through the properties.

Gau presented council members with a few options that could possibly make the site more attractive to buyers.

He noted the preferred option would see the properties realigned so the city would keep the easement and the three sites would become two, measuring at approximately (they have yet to be fully surveyed) at 1,893 square metres for the site at the corner of Second and Black and 1,723 square metres for the site at Keish and Second.

The move would allow potential buyers to have full use of their property rather than being restricted due to an easement.

Noting her agreement with Gau's proposal, Coun. Florence Roberts pointed out if there was a potential buyer interested in using the easement, for a deck or some other such feature, he or she could apply to use the easement as other businesses have done in the city, such as the Spook Creek Station.

Coun. Betty Irwin also expressed agreement to move ahead with the realignment for the three properties to become two, stating: "I think that's best.”

Gau had also suggested pulling all of the Motorways lots off the market, with the exception of the one lot that has a potential buyer, to get an updated appraisal. Council members didn't appear to support that move.

As Coun. Doug Graham argued, that could end up seeing the price "jacked up” to 2010 standards. The city may end up being accused of "screwing around” to put them up, he added.

While city manager Dennis Shewfelt noted the reappraisal could be done with the two sets of prices brought back to council to vote on, Graham again argued against it.

He said this morning that while the city won't go through another appraisal for all the Motorways properties, it will work with an appraiser to ensure it is using the right formula in setting the prices for the reconfigured properties without the easement.

"I don't anticipate the prices increasing to reflect current market conditions,” he said.

After the survey work is done and the lot lines are confirmed, the city will go through another bid process for the two sites.

While an exact date for that will depend on survey work and the time needed to look at pricing, Gau said he expects the bid deadline will be set for mid-fall.