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HomeMy WebLinkAboutPSD-009-11C1arJ~gton Leading the way REPORT PLANNING SERVICES Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: January 24, 2011 Resolution #: ~PR-63a- By-law #: 0~0//- 01) Report #: PSD-009-11 File #: RE 1.2 Subject: BY-LAW TO GOVERN THE SALE AND OTHER DISPOSITION OF SURPLUS MUNICIPAL LAND RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: L THAT Report PSD-009-11 be received; 2. THAT the By-law to govern the sale and other disposition of surplus municipal land Attachment 3 to Report PSD-009-11 be adopted; and 3. THAT the Mayor and Clerk be authorized to sign the By-law in Attachment 3. Submitted by: David J. Crome, MCIP, RPP Director, Planning Services IUAA/FUdf 12 January 2011 Reviewed by: Franklin Wu Chief Administrative Officer CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1 C 3A6 T (905)623-3379 F (905)623-0830 REPORT NO.: PSD-009-11 PAGE 2 1.0 BACKGROUND The Municipality of Clarington's By-law 95-22 for the sale and other disposition of land has been in place since 1995. This By-law conformed to the requirements of the Municipal Act in 1995 which required that municipalities follow mandatory procedures when selling real property. The Municipal Act has been amended several times since 1995 and the most recent amendments in 2006 deleted the sections dealing with real property sales. The Act now simply requires that municipalities adopt and maintain a policy with respect to "its sale and other disposition of land". By-law 95-22 satisfies this requirement, however, the revisions to the Act provide the Municipality with greater flexibility that could streamline the land disposal process if a new by-law is adopted. 2.0 BY-LAW DETAILS 2.1 Difference between the existing and arooosed by-law Attachment 1 highlights the minor differences between existing By-law 95-22 contained in Attachment 2 and the proposed by-law to govern the sale and other disposition of surplus municipal land in Attachment 3. The substantive differences are outlined in the following sections. 2.2 New Provisions Section 12 of the proposed by-law exempts the sale of road allowances, lands that the Municipality is obligated to sell pursuant to a prior agreement, such as land that is conveyed to the Municipality on a temporary basis and is to be conveyed back to a developer; lands sold for the purposes of providing a capital facility; and lands sold for tax arrears. These exempted sales have procedures outlined in other legislation or corporate policies. 2.3 Section 15 -Delegation to the CAO Section 15 gives authority to the CAO to sell or acquire land, or enter into agreements for, infrastructure, easement, rights-of-way, encroachments, leases and licenses. The value of the land must not exceed $10,000, the Municipality's interests are to be protected, all costs are to be paid by the purchaser, and the agreement is to be acceptable to the Municipality's Solicitor. Giving the CAO the authority to deal with such matters will allow for a more streamlined and efficient process for Staff to deal with small-scale routine real estate transactions. Section 15 of the proposed by-law proposes that the CAO be authorized to engage consultants to conduct studies as may be required in order to prepare land for sale. REPORT NO.: PSD-009-11 PAGE 3 3.0 CONCLUSION 3.1 The proposed by-law to govern the sale and disposition of surplus municipal land clearly outlines which transactions are governed by the by-law, when appraisal reports are required, how public notice is to be given, how public notification of the sale of land will occur, and the situations whereby authority is delegated to the CAO. 3.2 The changes to the Municipal Act have enabled municipalities to streamline the process for the disposition of land. 3.3 It is recommended that the proposed by-law be adopted and that By-law 95-22 be repealed in order to make the current procedure for land transactions more efficient. Staff Contact: Isabel Little Attachments: Attachment 1 -Chart of Recommended Revisions to By-law Attachment 2 - By-law 95-22 Attachment 3 -Proposed by-law Attachment 1 To Report PSD-009-11 Appraisal report required to Appraisal report and letter Letters of opinion are less determine fair market value of opinion can be used to costly - in certain cases determine fair market value such as environmentally protected lands a letter of opinion would be more cost effective. Sales and transfers can be Sales and transfers can be Appraisals are not required made without an appraisal made without an appraisal when land is being - no indication of when the -exemptions listed in repurchased after provision would apply. Section 9 and 10 expropriation or for municipal ecgnomic development grants and programs. Public notification in a local Public notification in a local Additional public notification newspaper. newspaper, plus posting provisions. the advertisement on municipal website. In addition, sale of Municipal lands can be promoted by newspaper ads, offered by way of tender or proposal call, listed with a real estate agent or broker, posting a for sale sign on the property, or exchanging lands. f,rR -f. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 95-22 being a by-law [o establish procedures governing the sale of real property pursuant to subsections 193(2) and (3) of the Municipal Act, R.S.O. 1990 c.M.45, as amended Attachment 2 To Report PSD-009-11 WHEREAS Section 55 of [he Planning and Municipal Statute Law Amendment Act, 1994 was proclaimed to be in force on January 1, 1995. It repealed and replaced Section 193 of the Municipal Act, R.S.O. 1990, c.M.45 with a new Section 193; AND WHEREAS [he new subsections 193(2) and (3) of the Municipal Act require every council with authority to sell or otherwise dispose of real property to pass a by-law to establish procedures, including the giving of notice to the public, governing the sale of real property; AND WHEREAS it is expediem to enact this By-law to establish procedures governing the sale of real property under subsection 193(2) of the Municipal Act, as amended, NOW THEREFORE BE IT ENACTED BY THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON AS FOLLOWS: In this by-law, the term: • "Act" means the Munlcipa! Act, R.S.O. 1990 c.M.45, as amended from time to time and includes regulations made under it; • "Council" means the council of the Corporation of the Municipality of Clarington; • "Municipality" means The Corporation of the Municipality of Clarington; • "sate" includes a lease of 21 years or longer; and • "surplus property" means real property owned or leased by The Corporation of the Municipality of Clarington which is not required for [he purposes of the Municipality. 2. The Municipality's Chief Administrative Officer, or a Director or other head of a department of [he Municipality to whom Council has assigned responsibility for real property owned or leased by the Municipality in consultation with [he Director of Planning and Development, from time to time shall: (a) identify real property that should be declared to be surplus property by Council; (b) report to Council recommending that Council declare the particular real property [o be surplus property and setting out the reason why it should be declared to be surplus property; and (c) advise in every report recommending that Council declare particulaz real property to be surplus property [hat at leas[ one appraisal of the fair market value of the real property in question should be obtained before Council decides to sell, or exchange and transfer the real property in accordance with the Act and this by-law, unless an appraisal is not required under the Act. J „ ` 2 3. Despite Section 2 but subject to the requirements of the Act, where real property owned by the Municipality consists of highways, public lanes, roads or road allowances, the Director of Public Works in consultation with the Director of Planning and Development from time to time shall: (a) identify the real property that should be declared surplus property by Council; (b) report to Council complying with the Act and Report WD-3-90 which was adopted by Council at its meeting on February 12, 1990, recommending that Council declare that the particular real property to be surplus property and setting out [he reasons why i[ should be declared to be surplus property; (c) advise in every report recommending that real property be declared by Council to be surplus property that at least one appraisal of the fair market value of the real property in question should be obtained before Council decides to sell, or transfer the real property in accordance with [he Ac[ and this by-law, unless an appraisal is not required under the Act; and (d) advise in every report recommending that real property be declared to be surplus property, appropriate terms and conditions for the sale or transfer of the real property if i[ is declared to be surplus property. 4. Where a report [o Council is made by the Chief Administrative Officer, a Dtrector or other head of a departmem of the Municipality pursuant to Section 2 of this By-law, the Director of Planning and Development may also repo;[ [o the same meeting of Council in all cases in which he is of the opinion that the real property in question, if i[ is declared by Council [o be surplus property, should be sold at its appraised fair market value to a property owner for development in accordance with a land use plan of the Mtmicipality rather than being sold by public tender, and shall set out his recommendation as to the terms a~ wnditions under which such surplus property should be transferred to a property owner by the Municipality. Where in reviewing a report to Council pursuant to Section 2 of this By-law the Director of Planning and Development considers that it to be appropriate in the interest of the Municipality in order to achieve an objective of a land use plan of the Municipality that [he real property in question if declazed by Council [o be surplus property be sold to a propetty owner for a consideration which is the exchange and transfer to the Municipality of real property of an equivalent or higher value after at least one appraisal of the fair market value of [he real property to be exchanged and transferred for the surplus property has been obtained by the Municipality, the Director of Planning and Development may recommend the sale by way of exchange and transfer to Council setting out his recommendation as to the terms and conditions under which [he surplus property should be sold by way of exchange for other real property. 5. After complying with the provisions of the Act, and in the case of highways, roads or road allowances the aforesaid Report WD-3-90: (a) before selling or otherwise disposing of real property, Council by by-law or resolution shall declare the real property in question to be surplus property in public session; and (b) Council shall also determine wbethet the surplus propetty referred to in clause (a) shall be sold by the acceptance of an offer to purchase submitted by members of the public in response to an invitation to the public [o tender offers to purchase, sold at its appraised fair market value to an adjacent property owner, or exchanged and transferred for property of equivalent or greater value as recoaunended by the Director of Planning and Development pursuant to Section 4 of this By-law. . Y ~' '.y. -3- 6. Before selling any surplus property whether for cash or the exchange and transfer of other real property for it, unless otherwise provided by the Act, Council shall obtain at least one assessment of the fair market vakue of the surplus property. 7. (1) In addition to complying with all relevant provisions of the Act, the Clerk shall give notice of a proposed sale of surplus property of the Municipality whether for a consideration to be paid in cash or the exchange and transfer of other real property for the surplus property shall by causing a notice to be published at least once m a newspaper of general circulation in the area in which the surplus property is located not less than seven days prior to the date of the meeting of Council at which the proposed sale of surplus property for cash or exchange and vansfer is to be considered. (2) The notice referred to in subsection 7(1) shall: (a) briefly describe the surplus property; (b) shall state whether it is proposed to be exchanged, sold by public tender, or sold to a property owner; (c) shall specify in the case of a sale of surplus property by public tender the name and address of the official of the Municipality from whom interested persons can obtain an information package containing the terms and conditions of the invitation to members of the public to tender offers to purchase the surplus property and containing terms and conditions of any sale; and (d) shall state that the decision of Council to sell the surplus property in question for cash or exchange for other real property will be considered at the public meeting of Council on the date and at the time speciSed in the notice. By-law read a first and second time this 6ch day of ~=ch 1995. By-law read a third time and finally passed this 6ch day of ![arch 1995. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW NO. 2011- Attachment 3 To Report PSD-009-11 being a by-law to govern the sale and other disposition of surplus municipal land WHEREAS Subsection 270(1) of the Municipa! Act, 2001 provides that municipalities shall adopt and maintain policies with respect to the sale and other disposition of land, the circumstances in which the municipality shall provide notice to the public, and the delegation of its powers and duties; NOW THEREFORE the Council of the Corporation of the Municipality of Clarington enacts as follows: PART 1 -INTERPRETATION Def n itions In this By-law: "CAO" means the Municipality's Chief Administrative Officer or a designate; "Clerk" means the Municipal Clerk; "Council" means the Council of the Municipality; "Municipality" means the Corporation of the Municipality of Clarington; and "Sale" includes a lease of 21 years or longer. Word Usage 2. This by-law shall be read with all changes in gender or number as the context may require. 3. A grammatical variation of a defined word or expression has a corresponding meaning. Severabilitv 4. Should any section or part of this by-law 6e held by a Court of competent jurisdiction to be invalid, the remainder of this by-law shall not be affected. References to Legislation 5. In this by-law, reference to any Act is reference to that Act as it is amended or re- enacted from time to time. Construction 6. Except where otherwise noted, any reference in this by-law to a section or clause is to a section or clause in this by-law. PART2-.PROCEDURES Proposed Sale of Land Before selling any land, Council shall (a) declare the land to be surplus; (b) obtain at least one appraisal qr letter of opinion of fair market value of the land to be sold from a qual'rfied appraiser; and (c) give notice to the public in accordance with Section 11. Means of Selling 8. The Municipality may promote and effect the sale of land by any available means including: (a) advertising within a newspaper of general circulation; (b) offering the land for sale byway of tender or proposal call; (c) listing the land with a registered real estate agent or broker; (d) posting a "for sale" sign on the land; and/or (e) exchanging of land. Appraisal Exemptions 9. Clause 7(b) shall not apply to the following classes of land: (a) land repurchased by an owner in accordance with section 42 of the Expropriations Act, and (b) land sold under section 107 (General Power to Make Grants) or section 108 (Small Business Programs) of the Municipal Act, 2001. 10. Clause 7(b) shall not apply to the sale of land to the following public bodies: (a) a municipality; (b) a local board as def ned in the Municipal Act, 2001; (c) a school board; (d) a conservation authority; and (e) the Crown in right of Ontario or of Canada and their agencies. Notice 11. Before any land is sold, the Clerk shall give notice to the public of the Municipality's intention to sell the land in one or both of the following forms: (a) by publication of an advertisement in a newspaper of general circulation prior to the date of the meeting of Council at which the proposed sale is to be considered; and/or (b) by posting notice on the Municipality's website. Consultation 12, All Department Heads shall be advised and be given an opportunity to comment on any proposed sale or other disposition of land. Request for Acouisition 13. All requests from private land owners that the Municipality acquire all or a portion of the owner's land shall be directed to the Planning Services Department. The Planning Services Department shall coordinate the circulation of all such requests to all Department Heads for review and comment. Upon receipt of all comments, the owner shall be notified in writing whether there is any interest in acquiring the land Official Plan Conformity 14. All sales and purchases made in accordance with this by-law must conform to the Clarington Official Plan. Delegation 15. The CAO shall have the authority to enter into agreements and sign all documents necessary to sell or acquire the fee simple interest in any land required for public infrastructure purposes, or any interest in land for temporary and permanent easements and rights-of-way, encroachment agreements, and leases and licences provided, (a) the consideration paid or received for the land or the interest in land does not exceed $10,000.00; (b) no other Municipal interests will be adversely affected by the conveyance; (c) for all sales, the party acquiring the land or the interest in land pays all transaction costs and enters into an agreement that is acceptable to the Municipal Solicitor; and (d) the Finance Department is advised of the sale or purchase for the purpose of maintaining an up-to-date tangible capital asset listing. 16. The CAO and the Director of Planning Services shall have the authority to engage consultants to prepare environmental site assessments, environmental impact assessments, natural heritage evaluations, or any similar study that may be required prior to the sale of land. AppllCatlOn 17. This by-law shall not apply to: (a) road allowances that are sold in accordance with the Council approved Policy and Procedure for Road Closure and Conveyance; (b) land or an interest in land that is sold or acquired in accordance with section 13; (c) land that the Municipality is obligated to sell pursuant to a prior agreement; (d) land sold under section 110 (Municipal Capital Facilities) of the Municipal Act, 2001; and (e) land sold under Part XI (Sale of Land for Tax Arrears) of the Municipal Act, 2001. Sale Proceeds 18. All proceeds from the sale of land shall be deposited into the appropriate account as determined by the Director of Finance. PART 3 -GENERAL Reoeal 19. By-law 95-22 is repealed. Effective Date 20. This By-law shall take effect on the date that it is passed by Council. BY-LAW read a first time this day of January January day of January 2011 BY-LAW read a second time day of BY-LAW read a third time and finally passed this 2011 2011 Adrian Foster, Mayor Patti L. Barrie, Municipal Clerk