A federal agency is preparing a prime piece of St. John's real estate for private development, including residential subdivisions.

The Pleasantville neighbourhood houses a number of surplus federal government buildings, a legacy of the area's use as a U.S. military site.

Pleasantville was developed in the 1940s as a U.S. military base.
Pleasantville was developed in the 1940s as a U.S. military base.

A Crown corporation called Canada Lands Company has acquired 32 hectares of the former base.

Canada Lands Company buys surplus government properties and prepares the land for private developers.

Vice-president Gordon McIvor would not disclose the price of the acquisition, but said there are substantial plans for the land assembly.

"This is a very important part of the city's future," McIvor said.

The public and St. John's city hall will be asked to help create a conceptual plan for the site.

McIvor said Pleasantville will then be sold to a private company without any fear of developing something out of character with the area.

Coun. Art Puddister, whose ward covers the east-end neighbourhood, says he would like to see a mix of developments in the area, including new homes, condominiums and businesses.

"I would say there's going to be some great interest and keen competition from the private sector to acquire some land down there," Puddister said.

The change will bring a boon to city coffers. Once developed, the owners will be required to pay taxes to the city.

However, residents should not expect a hasty change to the Pleasantville area, which was largely farmland before becoming home to a U.S. base during the Second World War.

McIvor said the Canada Lands Company will set up a local office soon, but it will be some time before the facelift begins.

The Canadian military may retain its small station on the land. The Department of National Defence has an option to buy back about six hectares.