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HomeMy WebLinkAboutADMIN 36-81CORPORATION OF THE TOWN OF NEWCASTLE 40 TEMPERANCE STREET BOWMANVILLE, ONTARIO LiC3A6 TELEPHONE 623-3379 REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MEETING OF NOVEMBER 23 1981 ADMIN. 36-81 SUBJECT: Industrial Promotion and Development Reserve Fund RECOMMENDATION: It is -respectfully recommended that: 1. This report be received; and 2. That the attached by-law to establish a Reserve Fund for Industrial Promotion and Development of Town owned industrial lands be approved; and 3. That the net proceeds from the sale of industrial lands and the accumulated interest presently in the Town's accounts be an addition to the aforementioned fund. BACKGROUND: Treasurer's report 89-81 reproduced here in part, was referred to the C.A.O. for review. A slightly revised by-law is attached to this report for the consideration of the Committee. In response to the concerns of Council and comments made in the 1981 post -audit letter, we have reviewed the establishment and use of the present Industrial Promotion Reserve Fund. In 1975 the Industrial Committee passed the following resolution: "That it be recommended to Council that the Proceeds of sales of Town owned industrial land be used firstly to retire debenture funds 2 4�) W) 6 -2 - ADMIN. 36-81 owing and secondly to be put in a special fund for Industrial promotion." This resolution was not subsequently ratified by Council and therefore staff had no approval to act under its direction. However, an "Industrial Promotion Reserve Fund" was established and has been maintained and used since 1975. The reserve fund has a balance of approximately $400,000 which consists of proceeds from sale of industrial lands and accumulated interest less any disbursements. Before the end of 1981 the balance of the cost of the aerial fire truck will be funded out of these monies. COMMENTS: Under Section 125 of the Region of Durham Act, and the relevant sections of the Municipal Act, as outlined below, .the Town may promote and sell any industrial lands acquired before Regional Government. Although not expressly stated this authority may be interpreted to include the power to develop (i.e. service and sell) Town owned industrial property. The Town's authority does not include the power to purchase, develop and/or promote new industrial lands. This authority is expressly the power of the Regional Municipality. Section 125 - Region of Durham Act 1) The Regional Corporation may make expenditures for the purpose of diffusing information respecting the advantages of the regional municipality as an industrial, business, educational, residential or vacation centre and may make annual grants for such purposes. 2) Paragraph 50 of subsection 1 of section 354 and section 395 of The Municipal Act apply 'mutatis mutandis' to the Regional Corporation and no area municipality shall exercise any such powers save and except in respect of those lands acquired or held by a local municipalit on or befnra i -ho --- Ate„ r -'_--- Section 50 - The Municipal 'Act For acquiring and expropriating land and selling or leasing the land for the purpose of sites for the establishment and carrying on of industries and of industrial operations ..3 ADMIN 36-81 -3- l �>R and uses incidental thereto. a) Where land has been acquired under this paragraph, and any debt is outstanding in respect of the acquisition of the land, or in respect of any services applied to the land, other than services supplied under The Local Improvement Act, all moneys received from the sale or lease of such land shall be used to retire the debt or shall be set aside as a fund to provide for the retirement of the debt unless on the vote of the council the use of such moneys is directed for another purpose; and when the debt is retired or the amount in the fund is sufficient to provide for the complete retirement of the debt, the balance of such moneys on hand and any such moneys received thereafter shall be credited to the general funds of the municipality. b) Any land acquired under this paragraph may be used by the municipality for the purposes of the municipality or may be sold to any local board, as defined in The Municipal Affairs Act, for the purposes of such board. c) Where it appears to the council that any land acquired under this paragraph is no longer required for the purposes for which it was acquired or for the use of the municipality, the council may sell or dispose of the whole or any part of such lands for any purpose. 1976,c.51,s.10, part; 1976, c.69,s. 10(4). Section 395 - The Municipal Act 1) The council of a municipality may expend in any year such sum as it may determine for the purpose of diffusing information respecting the advantages of the municipality as an industrial, agricultural, business, educational, residential or vacation centre. 2) The council of a municipality having a population of not less than 5,000 may pass by-laws for the establishment and maintenace of a department of industries and for appointing a commissioner of industries to bring to the notice of manufacturers and others the advantages of the municipality as an industrial, agricultural, business, educational, residential or vacation centre. 3) Any two or more municipalities may pool their funds and act jointly for the purposes of this section. 1976, c.51 s.11. Resp ly submitted, D. A�. ith, M.C.I.P. Administrator THE CORPORATION OF THE TOWN OF NEWCASTLE BY-LAW No. 81-187 being a by-law to establish a Reserve Fund for the Promotion and Development of "Industrial Lands" acquired before December 31, 1973 WHEREAS the Council of the Corporation of the Town of Newcastle considers it desirable to 'establish a reserve for the purpose of providing funds for the Promotion and Development of Municipally owned "Industrial" lands; AND WHEREAS Section 308 (1) of The Municipal Act, R.S.O. 1970, as - amended, provides, that "every Municipality and every board, commission, body or local authority established or exercising any power or authority with respect to municipal affairs under any general or special Act in an unorganized township or unsurveyed territory may in each year provide in the estimates for the establishment or maintenance of a Reserve Fund for any purpose for which it has authority to spend funds; NOW THEREFORE BE IT ENACTED AND IT IS ENACTED AS A BY-LAW OF THE CORPORATION OF THE TOWN OF NEWCASTLE AS FOLLOWS: 1. That the Treasurer is authorized to establish a reserve fund entitled Reserve Fund for Industrial Promotion. _ 2. That the Council may by resolution passed by a majority of members present direct the use of the funds for specific projects relating to sale, promotion or development of, industrial lands presently held within the Town: 3. That Council may by By -Law direct the use of the funds for any other purpose,.for which it has the authority to spend monies. BY-LAW READ a first and second time this 30th day of November 1981 BY-LAW READ a'third and final time this 30th day of November 1981 Garnet B. Rickard Mayor David W. Oakes Clerk