Winnipeg city councillors will consider a two-year pilot project Thursday that could see the city eventually earn revenue from unused land by selling it on the cheap.

Civil servants with the city's planning department are recommending council approve selling up to 25 vacant or derelict properties the city owns in the William Whyte neighbourhood for as little as 50 per cent of their appraised value to non-profit providers of affordable housing.

The proposal leaves the option open for the city to partner with vocational institutions or housing providers to rehabilitate properties with existing structures, and then sell them directly on the open market.

"It's an investment on the city's part from multiple angles," said Dale Harik, director of housing with the North End Community Renewal Corporation.

The organization would assist in the development process by consulting with community members and local stakeholders before any project is approved.

Among the 25 properties under consideration in William Whyte, 17 are vacant lots big enough for single-family homes, the City of Winnipeg's administrative report says.

If all 17 properties are sold at 50 per cent off their assessed value, the city would be selling them at a loss of $279,000 — roughly $16,000 on each property. But after lots are developed, the city could recoup that money, and then some, through property taxes, the proposal says.

The civil service projects a potential 6.9 per cent return on investment through the renewal project.

"I'm not an accountant but $20,000 for, say, five years or 10 years of affordable housing has got to be a pretty good bang for their buck," said Harik.

"The more substandard housing that we can get converted into good-quality housing … then the better position people are going to be in to focus on improving their lives."

On top of earning revenue from potential taxes, the city would also save money by dropping maintenance tasks like cutting grass or keeping vandals away from properties.

Parking concerns: Eadie

The proposed plan imposes a two-year deadline for non-profit partners to complete their development work. If they don't meet that time limit, property ownership would revert back to the city.

That is a provision Mynarski Coun. Ross Eadie said is necessary to address the blight of vacant properties in the North End.

On Wednesday, Eadie said he will be supporting the project in William Whyte but has concerns about parking in the area, especially near Selkirk Avenue.

"We've got parking problems on Pritchard and Flora. The people who live there get pissed off because people who don't live around there are parking. They can never get any parking," Eadie said.

Four large city-owned properties on Selkirk Avenue are potential candidates for the pilot program and he wants parking to be considered before any of them are sold.

Council will vote on the plan Thursday — but it's not the first of its kind in Winnipeg.

From 1999 to 2012, under the Winnipeg Housing and Homelessness Initiative, Winnipeg sold 302 properties to non-profits and the province for $1 each to create more affordable housing, according a city administrative report.

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