HomeMy WebLinkAboutADMIN-6-95 REPORT #2
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
2Q=l ANY=-Tu
REPORT
Meeting: COUNCIL MEETING File#
Date: FEBRUARY 27, 1995 Res. #C Zi
ADMIN-6-95 By-Law#
Report#: File
BY-LAW TO ESTABLISH PROCEDURES RESPECTING THE SALE OF LAND
Subject:
BY THE MUNICIPALITY
Recommendations:
It is respectfully recommended that Council approve the following
recommendations :
1 . THAT Report ADMIN-6-95 be received; and
2 . THAT the By-law attached to Report ADMIN-6-95 be enacted by
Council .
BACKGROUND AND COMMENT:
On January 1, 1995, Section 55 of the Planning and Municipal
Statute Law Amendment Act 1994, was proclaimed to be in force .
This section repealed and replaced Section 193 of the Municipal
Act, R. S .O. 1990, c .M.45 with a new Section 193 dealing with the
sale of surplus land by a municipality or a local board. This
new section requires every council with authority to sell or
otherwise dispose of real property to pass a by-law establishing
procedures, including the giving of notice to the public,
governing the sale of real property.
Section 193 of the Municipal Act now details other requirements
and procedures . Subsection 193 (4) of the Municipal Act provides
as follows :
Before selling any real property every council and local
board shall,
(a) by by-law or resolution passed at a meeting open to the
public declare the real property to be surplus;
(b) obtain at least one appraisal of the fair market value
of real property; and
(c) give notice to the public of the proposed sale .
Continued . . . /2
Report ADMIN-6-95 - 2 - February 27, 1995
Only if the sale of surplus property is consistent with the
municipality' s procedure by-law respecting the sale of land and
with Section 193 of the Municipal Act, will the manner in which
the council or local board carries out the sale of its property
not be open to question or review by any court if the council may
lawfully sell the property, the purchaser may lawfully buy it and
the council acted in good faith.
It is, therefore, respectfully recommended that the by-law
attached to Report Admin-6-95 be enacted by Council .
Respectfully submitted
W.H. Stoc wel !
Chief Administrative Officer
WHS/ms
Attachment
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Shibley Righton
Barristers & Solicitors
RICHARD E.SHIBLEY,Q.C. RUPERT F.RIGHTON,Q.C. HAROLD H.ELLIOTT,Q.0 DENNIS C.HEFFERON
DENNIS C.HEFFERON DONALD K.ROBINSON,Q.C. RICHARD E ANKH,Q.C.
LESLIE S.MASON BARRY S.WORTZMAN,Q.C. DEZ WINDISCHMANN DIRECT LINE:(416)214-3461
JOHN P.BELL MICHAEL FITZPATRICK,Q.C. GEORGE CORN
V.ROSS MORRISON LINDA S.BOHNEN MICHAEL C.BIRLEY
PETER C.WILLIAMS PAUL E.McINNIS PETER G.NEILSON FAX:(416)214-3438
CLIFFORD 1.COLE JONATHAN H.FLANDERS CHARLES SIMCO
THOMAS A.STEFANIK WILLIAM L.NORTHCOTE JAMES ROSSITER
HELDER M.TRAVASSOS PETER V.RAYTEK J.JAY RUDOLPH
CYNTHIA J.GUNN MARTIN J.HENDERSON NICHOLAS T.MACOS
WARREN S.RAPOPORT RICHARD E.COLES ALEXANDER P.TORGOV
CHARLES M.GASTLE PHILIP P.HEALEY CHARLES G.T.WIEBE BOX 32-401 BAY STREET
J.PAUL R.HOWARD WADE D.JAMIESON LEONARD D.RODNESS TORONTO,CANADA
SANDRA E.DAWE LINDA J.GODEL JANIS E 1NGRAM
CHRISTINE M.SILVERSIDES SALVATORE G.P.FRISINA THOMAS McRAE MSH 2Z1
JAMES W.BUSSIN KAREN 1.McMASTER CRAIG A.LEWIS
JENNIFER L.PERRY WILLIAM A.CHALMERS ELIZABETH G.MARTIN
COUNSEL SUITE 1800
MARTIN L.O'BRIEN,Q.C. BARRY D.LIPSON,Q.C. THE SIMPSON TOWER
February 21, 1995
File No. 8801183
CONFIDENTIAL
Mr. W.H. Stockwell
Chief Administrative Officer
Municipality of Clarington
40 Temperance Street
Bowmanville, Ontario
L1C 3A6
Dear Mr. Stockwell:
Re: Draft By-law to Establish Procedures
respecting the Sale of Land by the Municipality
Section 55 of the 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. Section 193 of the MunicipalAct.
deals with the sale by a municipality or a local board of surplus land, The former Section
193 provided that the determination of a council as to the time when, the manner in which,
the price for which or the person to whom any property of'the corporation of the council
may lawfully sell shall be sold, is not open to question, review, or control by any court, if the
purchaser is a person who may lawfully buy and the council acted in good faith. The new
Section 193 of the Municipal Act requires every council with authority to sell or otherwise
dispose of real property to pass a by-law establishing procedures, including the giving of
notice to the public, governing the sale of real property.
The procedure by-law required by subsection 193(9) of the Municipal Act may
establish different procedures for different classes of real property, as well as incorporate
a procedure for the sale of real property of a council required by the Municipal Act or any
other Act. It is a condition precedent to a municipality exercising its power to sell land that
it first enact a procedure by-law under subsection 193(2) of the Municipal Act.
Celebrating 30 fears 1964- 1994
Shibley Righton
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Section 193 of the Municipal Act now details other requirements and procedures.
Subsection 193(4) of the Municipal Act provides as follows:
Before selling any real property, every council and local board shall,
(a) by by-law or resolution passed at a meeting
open to the public declare the real property
to be surplus;
(b) obtain at least one appraisal of the fair
market value of real property; and
(c) give notice to the public of the proposed
sale.
Only if the sale of surplus property is consistent with the municipality's procedure by-law
respecting the sale of land and Section 193 of the Municipal Act, will the manner in which
the council or local board carries out the sale of its property not be open to question or
review by any court if the council may lawfully sell the property, the purchaser may lawfully
buy it and the council acted in good faith. Obviously, this is a substantial change from the
provisions of the former Section 193 which previously delegated extensive discretionary
powers to a municipality the exercise of which could not be questioned before a court if
done in good faith.
Subsection 193(7) of the Municipal Act also requires every council and local board
to establish and maintain a public register listing and describing the real property owned or
leased by the municipality or local board. You may wish to report further to Council on this
matter before requesting Council to direct that the public register be prepared.
Subsection 193(6) of the MunicipalAct authorizes the Minister to make regulations,
(a) prescribing classes of real property for which an appraisal or a
listing in the public register is not required; and
(b) prescribing public bodies or classes of them for which an
appraisal is not required for sale of real property under Section
193.
Regulation 815/94 which became effective on January 1, 1995 defines classes of real
property which may be sold without obtaining an. appraisal; authorizes a municipality or
local board to sell real property to another municipality, a local board, a conservation
authority, and the Crown in Right of Ontario or of Canada or their agencies without
obtaining an appraisal; and saves the municipality or a local board from the. requirement
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Shibley Righton
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of listing land 0.3 metres or less in width acquired in connection with an approval or
decision under the Planning Act, all highways, roads and road allowances, and land formerly
used for railway branch lines from the requirement that they be listed in the public register
to be established by the municipality under subsection 193(7) of the Municipal Act.
Subsection 193(9) of the Municipal Act authorizes the clerk of a municipality or the
secretary of a local board to issue a certificate with respect to the sale of real property by
the municipality or local board verifying to the best of his or her knowledge and belief
certain matters. These include that a procedure by-law required by Section 193 was in force
at the time the resolution or by-law required by subsection 193(4) to declare the real
property to be surplus was passed; the measures required for giving notice to the public
required by the procedures by-law have been carried out; the required appraisal has been
obtained or that the property is of a prescribed class that does not require an appraisal; and
certain other matters.
Under subsection 193(9) a certificate is required to be included in a deed or transfer
of land and unless the person to whom the real property is sold has notice to the contrary,
shall be deemed to be sufficient proof that Section 193 has been complied with.
As requested by you, I enclose herewith a draft sale of land procedure by-law which
Council may enact pursuant to subsection 193(2) of the Municipal Act.
Yours very truly,
SHIBLIEY RIGHTON
Dennis Hefferon
DH/bg
Encl.
C. Mrs.P.Barrie
Mr.I Caruana
Mr.W.Evans
Mrs.M.Marano
Mr.F.Wu
Draft #4
February 21, 1995
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW NO. 95-
being a by-law to 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
WHEREAS Section 55 of the 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 the 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 expedient 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:
1. In this by-law, the term:
• ".Act" means the Municipal 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;
• "sale" 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
the purposes of the Municipality.
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2. The Municipality's Chief Administrative Officer, or a Director or other head of a
department of the Municipality to whom Council has assigned responsibility for real
property owned or leased by the Municipality in consultation with the 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 to 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 particular
real property 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 exchange and transfer the real
property in accordance with the Act and this by-law, unless an
appraisal is not required under the Act.
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 the reasons why it 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 the Act 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 it is declared to he surplus property.
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4. Where a report to Council is made by the Chief Administrative Officer, a Director
or other head of a department of the Municipality pursuant to Section 2 of this By-
law, the Director of Planning and Development may also report to the same meeting
of Council in all cases in which he is of the opinion that the real property in
question, if it is declared by Council to 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 Municipality rather than being sold by public tender, and shall
set out his recommendation as to the terms and conditions 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 the real property in question if declared by Council to be surplus property be
sold to a property 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 the 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 the 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 whether the surplus property 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 to 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 recommended by the
Director of Planning and Development pursuant to Section 4 of this
By-law.
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 value of the surplus property.
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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 in 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 transfer 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 specified in the notice.
By-law read a first time this day of February, 1995.
By-law read a second time this day of February, 1995.
By-law read a third time and finally passed this day of February, 1995.
MAYOR
CLERK
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THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW 95-22
being a by-law to 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
WHEREAS Section 55 of the 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 the 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 es(ablish
procedures, including the giving of notice to the public, governing the sale of real property;
AND WHEREAS it is expedient 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:
1. In this by-law, the term:
• "Act" means the Municipal 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;
• "sale" 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
the purposes of the Municipality.
2. The Municipality's Chief Administrative Officer, or a Director or other head of a
department of the Municipality to whom Council has assigned responsibility for real
property owned or leased by the Municipality in consultation with the 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 to be surplus property and setting out the reason why it should
be declared to be surplus property; and
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(c) advise in every report recommending that Council declare particular real
property 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 exchange and transfer the real property in
accordance with the Act and this by-law, unless an appraisal is not
required under the Act.
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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 the reasons why it 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 the Act
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 it is declared to be surplus property.
4. Where a report to Council is made by the Chief Administrative Officer, a Director or
other head of a department of the Municipality pursuant to Section 2 of this By-law, the
Director of Planning and Development may also report to the same meeting of Council
in all cases in which he is of the opinion that the real property in question, if it is
declared by Council to 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
Municipality rather than being sold by public tender, and shall set out his
recommendation as to the terms and conditions 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 the real property in question if
declared by Council to be surplus property be sold to a property 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 the
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 (he sale
by way of exchange and transfer to Council setting out his recommendation as to the
terms and conditions under which the 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 whether the surplus property 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 to 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 recommended by the Director of
Planning and Development pursuant to Section 4 of this By-law.
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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 value 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 in 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
transfer 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 specified in the notice.
By-law read a first and second time this 27th day of February, 1995.
By-law read a third time and finally passed this 27th day of February, 1995.
MAY(R
CLERK