CALGARY - A developer willing to sell 16 hectares of riverside land to the city says the property has been appraised at $16.4 million -- and he's dropped the requirement that any sale include out-of-pocket development costs.

Martin Dolemo, CEO of Dolemo Developments, said he plans to formally approach the city about the land's availability, after running a newspaper advertisement last week.

The appraisal, he said, was done in February by Colliers International.

As of last July, the city had assessed the property --using the addresses from Dolemo's first application to develop the site -- at just under $5 million.

In December 2007, Dolemo announced plans to build a $1-billion private health club on the site, including a hotel, arenas and movie theatre.

He said he still intends to file a new application regarding the proposed development in the next three months.

But given some opposition to developing the site, Dolemo said he'd also be willing to sell it to the city or someone else so it could be used as a park.

Doug Marter, the city's manager of parks planning, said land along the river is a priority, but that parcel --on the southwest side of the Bow River and north of Sarcee Trail -- hasn't been on the city's radar because it was privately owned.

There is no money for it in the legacy parks fund, he added.

Dale Hodges, the local alderman, said Dolemo hasn't spoken to him. He added it's unusual to con-duct land sales through the media.