Elliot Lake buys site of ill-fated Algo Centre mall for $900K

In a tight vote of 4-3, Elliot Lake city council has decided to buy the vacant lot left behind when the Algo Centre mall collapsed in 2012.

Council voted Tuesday night to buy the 13-acre site in downtown Elliot Lake from a numbered company for $900,000.

That company, a real estate developer based in Sudbury, purchased the property from the Nazarian family, which owned the mall at the time of the collapse, last week.

The deal sees five acres sold back to the developer for $150,000 for the development of a residential and retail complex.

"Nothing has happened with this large vacant lot in the heart of our community. I think it's time the city take responsible action and begin to mend those wounds," Elliot Lake Mayor Dan Marchisella told council. 

"My vote will go to picking up the pieces and rebuilding our central commercial core for the betterment of all in the community and not leaving it to the pride of a few."

The plan is for the city's share of the property to be the home for a new multi-million dollar recreation complex, including a new pool and arena.

But city councillor Norman Mann said this will hurt Elliot Lake's bid to land federal and provincial funding for the complex sometimes known as "The Hub."

"I'm not sure why we need to buy a piece of property when we were advised by the Minister of Infrastructure last week that this project needs to be built as cheap as possible," he said. 

"That property should have remained in private hands for commercial development."

City councillor Sandy Finamore also argued against the move, considering the a big snowplowing bill leftover from this winter, plus the uncertain costs for replacing or repairing the roof collapse at the Lester B. Pearson Civic Centre.

"Now is not the time to spend our taxpayers' money on a piece of property that does not need to be purchased," she said. 

"The property is not longer in the hands of the Nazarian family. It is where everyone wanted the property to be: out of his hands."

Back in 2017, Elliot Lake city council voted down a proposal to buy the property for $600,000. At the time, the Nazarian family was said to be seeking $1.5 million for the downtown site.