A prime commercial corner, vacant for more than a decade, has been gifted to the Salvation Army.

The Surrey Public Market, at 64 Avenue and King George Highway, could be transformed into a commercial and residential hub – if Surrey’s mayor has her way.

The market was a bustling centre for fresh produce in the early 1990s, but shut down in September, 1998.

The property has been dormant for the past 11 years, with the homeless taking up residence. A for sale sign has become a familiar fixture at the intersection of 64 Avenue and King George Highway.

The 7.7-acre property was listed on the market for more than $10 million, but committed buyers were scarce. Several investors came to look, but turned away, primarily for one reason.

The market is built on top of a stream, a tributary of Hyland Creek, which runs into the Serpentine River.

Provincial regulations have changed since the market was built, and significant setbacks from the creek would now be required on the property in order for new development to take place.

One builder told The Leader that with new setbacks factored in, there are about two acres of developable land on the site, making it a questionable investment. What’s more, rats have gnawed through wiring inside the building, which some professionals say needs about $4 million in repairs.

The property is assessed at just over $4 million.

Owner Walter Chan had been paying $50,000 annually for municipal taxes on the property. Chan, the president of Smitty’s Restaurants Canada, has given the property to the Salvation Army.

The property won’t change hands until an environmental assessment is complete, however, a source says that assessment is nearly done and will show a clean site for transfer.

Major Brian Venables, divisional secretary for The Salvation Army Public Relations and Development in British Columbia, confirmed Wednesday the land had been donated to the charity. He said before any development moves forward, a complete needs assessment would be conducted for the area.

“The Salvation Army is not known for entering into a community and not consulting with the community as to what they feel they need,” Venables said.

Nearby residents fear the corner will serve as a magnet for street people.

Venables believes the property would better be used for affordable housing.

“We don’t know if it will be family affordable housing or seniors’ affordable housing,” he said. “We have expertise in both.”

Mayor Dianne Watts said she’s done with social services for the area.

“We are not interested in having a soup kitchen, we are not interested in having a homeless shelter,” Watts said. She’s not opposed to having some affordable housing for seniors, but Watts wants that corner to be much more.

“There has to be some commercial, mixed use, even a recreational component for kids,” Watts said.

That said, she’s pleased the high-traffic corner will get a facelift.

“It does need to be redeveloped, and we’ll help them in that regard,” Watts said. “But they need to have another program (other than social services) on that site.”

The property is currently zoned commercial, and a move to housing or any other use, would require a public hearing.

kdiakiw@surreyleader.com