2013-29 Sale and Disposition of Municipal Land
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THE CORPORATION OF THE TOWNSHIP OF SOUTHWOLD
BY-LAW No. 2013-29
A Bylaw to Establish a Procedure for Governing the Sale
and Disposition of Municipal Land AND to repeal By-Law No. 2008-37
No amendments to date.
This by-law is printed under and by authority of the Council of the Township of Southwold.
Disclaimer: The following by-law is an electronic reproduction made available for information only. It is not an official version of the by-law. The format may be different, and plans, pictures, other graphics, or text may be missing or altered. The Township of Southwold does not warrant the accuracy of this electronic version. This by-law cannot be distributed or used for commercial purposes. It may be used for other purposes only if you repeat this disclaimer and the notice of copyright. Official versions of all by-laws can be obtained from the Clerk’s Department by calling 519-769-2010.
WHEREAS Section 270(1) of the Municipal Act, S.O. 2001, as amended, provides that every municipality and local board with authority to sell land shall adopt and maintain policies with respect to its sale and disposition of land;
NOW THEREFORE the Council of The Corporation of the Township of Southwold hereby enacts as follows:
Table of Contents
2. Declaration of Surplus Land
3. Procedure for Sale of Surplus Land
7. Receipt, Evaluation and Negotiation of Purchase Offers
9. Conflict with Acts & Regulations
In this By-law,
a) "Act" means the Municipal Act, S.O. 2001, as amended;
b) "Appraisal" means an opinion of the fair market value;
c) "Council" means the Council of The Corporation of the Township of Southwold;
d) "Land” includes building and an estate or interest in land or any nature including without limitation an easement, restrictive covenant or right of way;
e) “Municipal” or “Municipality” or “Municipally” means the Corporation of the Township of Southwold;
f) "Newspaper" means a printed publication in sheet form, intended for general circulation to all or part of the Township of Southwold, published at regular intervals, consisting in part of news or articles of general interest to the public;
g) “Notice” means notification provided to the public in accordance with this By-law;
h) "Published" means published in a newspaper that, in the opinion of the Clerk, has such circulation within the Township of Southwold as to provide reasonable notice to those affected by, or interested in the land sale, and "publication" has a corresponding meaning;
i) "Purchaser” includes a lessee or grantee of Land;
j) “Surplus Land” means any land or interest/rights owned by the Township of Southwold declared surplus to the needs of the municipality under this by-law;
k) “Sale” means the sale of land, which includes a lease of 21 years or longer and is also deemed to include surface, mineral, and/or timber interests/rights;
l) “Township” means the Corporation of the Township of Southwold.
2. DECLARATION OF SURPLUS LAND
2.1 In considering a sale of municipally-owned land, the Clerk shall conduct an internal circulation and review, to determine if the subject lands are required for municipal purposes or can be considered surplus to the needs of the municipality. The Clerk may also circulate its intent to declare certain municipal lands surplus to outside public agencies that may have an interest in the lands for comments.
2.2 If a property is deemed to be surplus to the needs of the municipality, the Clerk will prepare a report to Council. A property is deemed to be surplus to the needs of the municipality once Council has passed a resolution to this effect.
3. PROCEDURE FOR SALE OF SURPLUS LAND
3.1 Establishing Fair Market Value: Prior to offering any surplus municipal lands for sale, the Clerk shall establish the fair market value of the subject lands through one, or more, of the following means at the sole discretion of the Township:
- An independent qualified appraiser who is a registered member in good standing with the Appraisal Institute of Canada;
- An individual, group or agency not registered with the Appraisal Institute of Canada may be utilized to conduct an appraisal based on the circumstances at the discretion of Council. Generally, such individuals, groups or agencies may include qualified provincial assessors and independent real estate brokers or agents;
- a written “Opinion of Value” from a Realtor or an appraisal conducted by an independent qualified appraiser who is knowledgeable in the type of real property being considered for sale or lease and who has no direct or indirect financial interest in the property or who does not expect to benefit in any way from the sale or lease thereof;
- The latest assessed value as reported by the Municipal Property Assessment Corporation (MPAC);
- Recent sales comparisons associated with similar property transactions; or
- Any other person deemed by the Township to be qualified for this purpose, including a qualified land assessor in the Province of Ontario.
3.2 Any appraisals conducted on behalf of the Township shall be considered the property of the Township and shall be considered valid for up to a 12-month period from the date the appraisal was prepared unless Council determines a new appraisal is warranted. In addition, the Township may also consider timber, aggregate, and/or mineral resource values in establishing a fair market value for municipally-owned lands.
3.3 Exemptions: Notwithstanding 3.1 and 3.2, the Township shall not be required to obtain an appraisal with respect to the sale of any class of land, or sale of land to any public body exempt from the requirement under any provisions of the Act including:
- Land 0.3 meters (1 foot) or less in width acquired in connection with an approval or decision under the Planning Act;
- A closed highway sold to an owner of land abutting the closed highway;
- Land formerly used for railway lines if sold to an owner of land abutting the former railway land;
- Land that does not have direct access to a highway if sold to the owner of land abutting that land;
- Land repurchased by an owner in accordance with Section 42 of the Expropriations Act;
- Land sold under Sections 110 of the Municipal Act;
- Land sold under the Municipal Tax Sales Act;
- Easements granted to public utilities or to telephone companies;
- Land sold to public bodies including a municipality, local board (including a school board and a conservation authority), and the Crown in right of Ontario or Canada and their agencies.
4.1 Once a property has been declared surplus and before any surplus land is sold, notice of the sale of surplus lands will be posted on the Township’s website for a minimum of 2 consecutive weeks. Additional notice, including publication in newspapers, or other mediums, which provide coverage beyond the geographic area of the Township of Southwold shall be at the discretion of the Clerk. The Township may also circulate such notices to other jurisdictions, including utility companies, for review and comment.
The Notice should include the following:
a) A brief description of the purpose of the sale;
b) The date, time and location of the meeting where Council will consider the land sale;
c) A legal description, municipal address and/or key map which in the opinion of the Clerk is sufficient to identify the lands to be sold;
d) When and where information pertaining to the land sale will be available for public viewing; and
e) Name and contact information of the person handling the land sale and/or the deadline for any written submissions to the Town.
4.2 Should any submissions or concerns be received from the public, such comments shall be considered by Council during an open public meeting and prior to the by-law authorizing the sale being passed. In addition, municipal lands may be disposed of, but only after Council, in a meeting open to the public, has considered a report with recommendations provided for by the Clerk.
5.1 Before selling any surplus land, the Town shall obtain a survey of the land from an independent surveyor in accordance with the laws of the Province of Ontario. Council may, by resolution, waive the requirement for a survey, if an existing survey is available or one is not required.
Council shall determine the appropriate method of sale.
6.1 Tenders/Auction/Quotations - Where the method of sale is by Tender, Auction or Quotations, the Township shall:
a) Estimate the costs incurred or required to dispose of the surplus lands including appraisal, public notice, survey, legal fees, encumbrances, improvements or such other costs associated with the land sale;
b) Determine a reserve bid amount based on the appraised value plus estimated costs above;
c) Prepare an Invitation to Tender or Request for Quotations the statement that “the highest or any offer may not necessarily be accepted”; and
d) Give notice by way of posting on the Township website and publishing at least one (1) newspaper.
Council reserves the right to accept a Tender or Quotation less than the reserve bid amount where, in the opinion of Council, it is in the best interests of the Township to do so.
6.2 Request for Proposals (RFP) – Council may consider the sale of certain strategic parcels of municipal land and/or unique higher profile properties by way of a request for proposal. RFP’s will only be considered in cases where there is an obvious direct benefit or value to the Township from an economic development perspective that would be in the best interest of the public, an opportunity to implement different and new solutions to a problem, project, or business process. The RFP document will provide the proponents with an overview of the perceived or expected requirements. The proposal will be evaluated on several criteria, including but limited to price, quality of the proposal, economic impact, suitability of development, infrastructure benefits, community benefits, direct impact to township, and the qualifications of the proponent.
6.3 Direct Sale – In order for a “Direct Sale” to be considered, it must first be deemed the most feasible option by Council and is subject to passing a resolution requiring a 2/3 vote of all members of Council. Direct sales may take place when unsolicited proposals or offers for municipal lands are presented to the municipality for consideration without the municipality first advertising an RFP or public tender/auction/quotations for the subject lands. Under such circumstances, the municipality may negotiate a direct sale with the proponent or the municipality may choose to proceed with a formal public process to solicit more competitive bids for the lands in question. Generally, direct sales will only be considered in cases where there is an obvious direct benefit or value to the Township from an economic development perspective that would be in the best interest of the public (e.g., a commercial business requires abutting lands from the Township in order to expand an existing operation or where an investor wishes to establish a use to satisfy a demonstrated gap/need in the community, to bring a property into conformity with the Official Plan and/or Zoning Bylaw, sale of land to senior levels of government). A direct sale to a particular landowner should be considered if it would bring a particular abutting property(ies) into compliance with municipal standards (e.g., a sale that would provide sufficient road frontage to a property that does not meet the current minimum zoning requirement), or where the direct sale would support an existing business operation, or in cases where municipal roadways and laneways are closed.
6.4 Land Exchange – Land exchanges involving a reciprocal transfer of parcels held by the municipality for other parcels, which generally hold a higher public value. Such trades will generally be negotiated privately.
6.5 Listing with a Real Estate Broker or Other Agent – The Township may deem it appropriate to secure the services of a real estate broker or other qualified agent to assist with the marketing and sale of surplus municipal property. In such cases, the Township will undertake a competitive public process to select a preferred service provider.
6.6 Additional Policies regarding Highways, Streets, Laneways
Where the surplus land is a highway closed or being closed under the provisions of the Municipal Act, the Township shall:
a) estimate the costs incurred or required to close and/or sell the highway including public notice, survey, legal fees, encumbrances, improvements or such other costs associated with the land sale;
b) determine a sale price based on the value of the land plus estimated costs above. The Township may, at its sole discretion, place a nominal value on land where the purpose of the road closure and sale is to resolve a long standing encroachment on the highway or to bring a pre-existing building into compliance with the Township zoning by-law. Where the purpose of the proposed road closure and sale is to permit development of the lands either as part of an application under the Planning Act or the Building Code Act, the Township shall determine the value of the lands in a manner consistent with this By- law;
c) give notice in the same time, form and method as set out in this Bylaw, for the purpose of giving notice of the permanent closure of a road under the Municipal Act. Where the sale of the road is being carried out in conjunction with the road closure, the Notice may be issued for both purposes provided that the form of the notice references both the closure and sale of the highway; and
d) establish any special terms or conditions of the sale.
Council may reserve the right to adjust the sale price where, in the opinion of Council, it is in the best interests of the Town to do so.
6.7 Alternate Method
Where an alternate method of sale is used, Council shall provide for:
a) a determination of the sale price based on the appraisal of the land value and any costs associated with the proposed method of sale;
b) the method of public notice;
c) where, when and who will receive the offers or bids; and
d) any terms and conditions of the sale
e) Council may reserve the right to adjust the sale price where, in the opinion of Council, it is in the best interests of the Township to do so.
7. RECEIPT, EVALUATION AND NEGOTIATION OF PURCHASE OFFERS:
Purchase offers for surplus municipal property shall be reviewed and evaluated by the Council. The Township reserves the right to negotiate sales, development, and other agreements with any proponent (with the exception of the tendering process).
Appraisals or other means used to establish a fair market value for surplus municipal lands are to be used as a guide only and Council may ultimately decide to accept offers of purchase that are below, at, or above such established values or may decide not to accept any offers.
The Township also reserves the right to recover certain costs relating to the sale of surplus municipal lands from a proponent. These costs include, but are not limited to, the appraisal, survey, notice, encumbrances, legal costs, and general administration costs unless such costs are waived in writing within the provisions of an offer to purchase.
8.1 Where an employee of the Township is involved in any proposed Contract relating to Land - either in his or her own behalf or while acting for, by, with or through another person - has any pecuniary interest, direct or indirect, in the proposed Contract, the employee
a) shall immediately disclose the interest to the Clerk and shall describe the general nature of such interest; and
b) shall not take part in the procedure governing the Acquisition or Sale of such Land; and
c) shall not attempt in any way to influence the procedures governing the Acquisition or Sale of such Land.
8.2 Where an employee of the Township having a direct or indirect pecuniary interest in any proposed Contract relating to Land is the Clerk, the Clerk shall, with necessary modification, comply with the provisions of the Conflict of Interest Section of this By-law and shall further notify the Head of Council;
8.3 An employee has an indirect pecuniary interest on any Contract in which the Township is concerned, if the employee or his or her parent, child or spouse or opposite-sex partner or same-sex partner;
a) is a shareholder in, or a director or senior officer of, a corporation that does not offer its securities to the public that has a pecuniary interest in such Acquisition or Sale of Land;
b) has controlling interest or is a director or senior officer of, a corporation that offers its securities to the public that has a pecuniary interest in such Acquisition or Sale of Land;
c) is a member of an unincorporated association or partnership, that has a pecuniary interest in such Acquisition or Sale of Land.
8.4 All Council members shall conduct themselves in accordance with the Municipal Conflict of Interest Act, R.S.O. 1990, c. M50, as amended.
9. CONFLICT WITH ACTS & REGULATIONS
9.1 In the event the provisions of this By-law are inconsistent with the provisions of the Act, its Regulations or any other Act, the provisions of the Act or Regulation shall prevail.
9.2 All by-laws and policies inconsistent with the provisions of this By-law are hereby repealed.
10.1 The disclosure of information relevant to the Acquisition of Land or Sale of surplus Land, whether by sale, Lease or grant, shall be in accordance with the provisions of the Municipal Freedom of Information and Protection or Privacy Act, R,S.O. 1990, c. M56, as amended.
10.2 Where a Provincial or Federal Act specifies the procedure the Township is required to follow with respect to the sale of Municipal Land, the requirements of those Acts shall take precedence over this policy.
10.3 Notwithstanding anything contrary to this By-law, Council may, by resolution, provide for procedures other than those provided for in this By-law.
11.1 This By-Law shall come into force and effect upon the date of its passage.
12.1 That By-Law 2008-37, is hereby repealed.
READ A FIRST AND SECOND TIME, CONSIDERED READ A THIRD TIME AND FINALLY PASSED THIS 8th DAY OF JULY, 2013.
_________________________ _______________________________
MAYOR CLERK
JAMES MCINTYRE DONNA ETHIER
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