Pitt Meadows is $12.25 million richer after the sale of the City's property at 11431 Bonson Rd.
The 4.65-hectare site located south of Airport Way and west of Bonson Road was sold to the Onni Group.
The site is designated for residential development in the Official Community Plan and will be developed for medium-density housing similar to Osprey Village.
The agreement had been nearly two years in the making, said Mayor Deb Walters. After a request for expressions of interest was released by the City in 2011, a number of proposals were received.
"We were very fortunate to sell when we did and the purchase price was right in line with our independent market projections," Walters said.
"We must be strategic in how we use these dollars. We need to continue to think long term and ensure that we are still in a positive place a decade or more from now," she added.
Three-quarters of the sale proceeds, or a little more than $9 million, will be used to pay down some of the borrowing incurred for community projects such as the arena refurbishing and drainage improvements.
The balance of about $3.05 million could be used to further reduce debt or fund future infrastructure projects or reserves. Council will discuss funding issues as they move into business planning later this fall, Walters said.
Next steps for the development will require the submission of a rezoning application and a public consultation to gather feedback on design and land use.
The City expects an application to be made by the developer in late 2012 through 2013.
"Onni has had a successful partnership working with the City of Pitt Meadows for the past decade on such developments as Meadowtown Centre and the Golden Ears Business Park," said vice-president of development Beau Jarvis.
"The City of Pitt Meadows is a well-planned community offering citizens a mix of rural and urban lifestyles in a natural setting with all the city amenities," he added.