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2. SURPLUS REAL
ESTATE DISPOSAL PROGRAM – 2001-2005
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That Council receive this report for
information.
Que le Conseil municipal prenne connaissance du présent rapport.
1.
Chief
Corporate Services Officer’s report dated 17 February 2006
(ACS2006-CRS-RPM-0016).
2.
Extract
of Draft Minute, 21 February 2006.
Report to/Rapport au :
Corporate Services and Economic Development Committee
Comité des services organisationnels et du
développement économique
and Council / et au Conseil
17 February 2006/ le 17 février 2006
Submitted by/Soumis par : Greg
Geddes, Chief Corporate Services Officer/
Chef des
Services généraux
Contact Person/Personne
ressource : Gordon MacNair, Acting Manager,
Real
Estate Service, Real Property Asset Management/
Gestionnaire par intérim, Services immobiliers, Gestion des biens
immobiliers
(613) 580-2424 x 21217, Gordon.MacNair@ottawa.ca
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SUBJECT: |
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OBJET : |
REPORT RECOMMENDATION
That Corporate Services and Economic Development Committee recommend
Council receive this report for information.
RECOMMANDATION DU
RAPPORT
Que le Comité des
services organisationnels et du dévéloppement économique recommande que le
Conseil municipal prenne connaissance du présent rapport.
BACKGROUND
Based on staff's preliminary review of Real Property assets in the beginning of 2001, and a subsequent review later that year, Council directed RPAM (RESD) to realize revenue from the disposal of surplus property in the amount of $62.5 Million over five years.
At its meeting of 27 April 2005 (Report ACS2005-CRS-RPR-0017), Council was presented with a report which outlined the progress of the City’s Surplus Real Estate Program from 2001 to 2004, together with the anticipated revenue from sales for 2005.
That report indicated that the 2001 five (5) year target of $62.5 Million was surpassed. On the basis that all approved sales were completed and the economic climate remained steady, it was estimated that an overall goal of $103 Million of sales (sales revenue and cost avoidance), through to the end of 2005, could be attained.
It was confirmed that to achieve these results all sales would be completed in accordance with the “Disposal of Real Property By-law” ensuring that the City completed sales based on a fair, open and transparent process, and that the surplus assets were sold at market value.
DISCUSSION
Staff is pleased to report that the disposal program has generated sales with expected revenue of $80 Million and has also provided properties for City Mandated Programs, Land Exchanges and Community Assisted Projects, for total cost avoidance to the City of $22 Million. This represents a total of $102.5 Million of sales.
The following is a breakdown of the approved sales and credits for “cost avoidances” that the City has been able to achieve over the five years of the Disposal Program. Approved Sales is defined as sales that have been approved by Committee and Council. Cost Avoidance is defined as those properties that have been used for City Mandated Programs and land exchanges in connection with capital works programs. The reallocation of these properties for City needs is considered to be a savings to the Corporation and is shown as credits.
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Approved Sales |
# |
Revenue |
# |
Cost Avoidances |
Total Approvals |
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2001 |
31 |
$ 11,344,317 |
10 |
$ 5,799,741 |
$ 17,144,058 |
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2002 |
65 |
$ 14,815,359 |
7 |
$ 3,227,087 |
$ 18,042,446 |
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2003 |
60 |
$ 34,796,337 |
11 |
$ 5,856,000 |
$ 40,652,337 |
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2004 |
42 |
10 |
$ 2,971,825 |
$ 16,862.567 |
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2005 |
29 |
$ 5,326,848 |
4 |
$ 4,504,750 |
$ 9,831,598 |
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Total |
227 |
$ 80,173,603 |
42 |
$ 22,359,403 |
$ 102,533,006 |
The disposal team has been able to achieve these results with a minimum amount of resources utilizing many years of combined experience to optimize results. In the majority of cases staff has marketed and negotiated the sales directly.
The team has used a multi-faceted and aggressive approach in marketing and holding steady to selling property for no less than market value.
2006-2010 – DISPOSAL STRATEGY
Staff is currently in the process of reviewing the City’s property inventory to identify potential surplus properties and a report detailing projected revenue for 2006 to 2010 will be available in the fall of 2006.
This projected revenue target for 2006-2010 will be established on the basis that surplus real estate will not be held without a supported programming need and the associated capital budget authority to support that need according to the Council approved Disposal Policy.
The Official Plan policy directs that the City make land available for affordable housing and give priority for the sale or lease of surplus City-owned property for this purpose.
The City’s disposal policy provides that the Housing Branch of the Community and Protective Services Department, will be notified through the internal circulation process, to determine whether the real property is suitable for housing purposes. If it is determined by Housing Branch staff that a property is suitable for housing purposes, non-profit and cooperative housing groups may be offered the opportunity to lease or acquire the property at current market value. As part of the report to Committee and Council concerning the declaration of surplus status and the disposal of said property, Council may elect to approve a grant or lease or sell the property to a housing provider at nominal cost where deemed appropriate. From 2001 to 2005 the City has contributed approximately $7.9 Million worth of real property to various housing providers.
With the current review of the City’s inventory of properties it is anticipated that more properties can be identified to support the Action Ottawa Plan for affordable Housing.
This review will also be an opportunity to identify properties to be retained by the City with respect to the Greenspace Master Plan.
FINANCIAL IMPLICATIONS
On the basis that all approved sales are completed it is anticipated that the sales targets for the Surplus Real Estate Program 2001 to 2005 of $102 Million can be achieved subject to closings.
DISPOSITION
The Department of Corporate Services through the Real Estate Division of the Real Property Asset Management Branch shall ensure that the Surplus Real Estate Program continues with its goal of disposing of surplus properties based on a fair, open and transparent process with surplus assets being sold at market value, keeping in mind City objectives such as housing, natural environment and business development.
SURPLUS REAL ESTATE DISPOSAL PROGRAM – 2001-2005
PROGRAMME DE CESSION DE IMMOBLIER EXCÉDENTAIRE
– 2001-2005
ACS2006-CRS-RPM-0016
The Committee Coordinator pointed out there was a correction required in the table on page 46 of the Agenda. The total Cost Avoidances should read $22,359,403 and not $22,259,403. The Committee received the staff report, with this correction noted.
That Corporate Services and Economic Development Committee recommend
Council receive this report for information.
RECEIVED