The Guelph Mercury building and its property at 8-14 Macdonell Street is up for sale.
Steps away from the iconic Basilica of Our Lady Immaculate Church, with a large parking lot that fronts Norfolk Street, one of the busiest north/south thoroughfares in the city, the property is considered prime real estate in the downtown.
Owned by Canadian media and publishing company TorStar Corporation, the property’s sale is being handled by Michael Klein, broker and senior vice-president of Cushman and Wakefield in Kitchener.
Torstar treasurer Todd Smith confirmed on Tuesday via email that the property is now on the market, but declined to answer questions about the sale. He would only say that the property has been listed “with no asking price.” Smith directed inquiries about the property to Klein, who could not be reached for comment Tuesday morning.
Given the downtown development trend that has seen major condominium projects with mixed use retail/commercial amenities in recent years, many are seeing similar potential with the Mercury property.
“I think it's a great property with lots of potential,” said Marty Williams, executive director of Downtown Guelph Business Association. “Of course, the best option is a mix use commercial/office/residential, like the Gummer Building, with onsite parking and active street level use.”
The historic Gummer Building was severely damaged by fire in 2007. It and adjoining properties were purchased by Skyline Reit. A multi-year rehabilitation and addition project resulted in a multi-use commercial/retail/residential building.
“One could imagine incorporating the Albion and Bits Boards and Bikes into a bigger redevelopment too, if the owners were willing, of course,” Williams added. “That would be very cool.”
The historic Albion Hotel and the Mercury building abut each other. Bits, Boards and Bikes is located in a brick building next to the northwest corner of the Mercury parking lot.
Ward 1 city councillor Bob Bell sees similar potential for the property.
“We need some commercial development downtown, some employment places,” said Bell, citing examples such as software development or engineering firms.
Bell said the property is in a prime location. The façade of the building, he added, is unique, and he hopes it is preserved.
“But the back, the Norfolk Street frontage, leaves a little to be desired,” he said, adding that an access off of Norfolk for commercial purposes would be a good idea. The Norfolk access was closed a few years ago following the reconstruction of the Gordon/Norfolk corridor through the downtown.
Bell said there is lots of potential for residential space on the property, in keeping with the city’s residential intensification goals. He would not speculate on the value of the property, only saying that downtown real estate is much more valuable than it was five years ago.
“The people that know Guelph will know the potential of that property,” Bell added. “But that’s not to say that someone from outside wouldn’t come in and redevelop it as well. It would be great to see some additional tax revenue from some intensification there.”
Bell’s fellow Ward 1 councillor Dan Gibson concurred that employment growth is needed in downtown Guelph. He said the downtown “parking impediment would be mitigated” if more people lived and worked in the downtown. The downtown needs to transition towards more daytime activity, particularly employment at the professional services level, he added.
“The would continue to close the loop on the walkability of the downtown community,” he added.
The 149-year-old Guelph Mercury had its final print edition on Jan. 29. It was one of the oldest newspapers in Canada and its closure made national headlines. It was part of Metroland Media Group, a division of TorStar that oversees about 100 community newspapers across Ontario, as well as the Waterloo Region Record and the Hamilton Spectator.
In announcing the closure on Jan. 25, Mercury publisher Donna Luelo said a decline in classified and national advertising made it impossible for the print edition to remain profitable. The closure put 23 full-time and three part-time employees out of work.
Work began shortly after the closure to clear out the building, with a number of waste bins seen in the building’s parking lot filled with office furniture and other materials. The building has three levels, including office space and a large shipping and receiving area on the main floor.
The newspaper’s press was removed from the basement space about three years ago, following the decision to consolidate printing operations at the Hamilton Spectator, another Metroland/TorStar daily. The Mercury underwent a number of consolidation measures in recent years to address declining advertising revenue.
TorStar Corp. lost $234.5 million in the fourth-quarter of 2015, results announced on March 2. That included non-cash write-downs amounting to $209.4 million. The company’s stock value has steadily declined over the past years, dropping from about $15 five years ago to $1.76 as of Tuesday morning. One year ago the stock value hovered around $7.40.
