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7. DISPOSAL OF REAL PROPERTY POLICY AND PROCEDURES
politique
et procédures relatives à la cession de biens immobiliers |
COMMITTEE RECOMMENDATIONS
That Council:
1. Approve the Disposal of Real Property Policy attached as Document 1 and the Disposal of Real Property Procedures attached as Document 2, which establish a transparent and accountable process for the disposal of City-owned property, including the giving of notice to the public; and
2. Repeal By-law 2002-38, as amended, being a By-law of the City of Ottawa to establish procedures, including the giving of notice to the public, governing the sale of real property owned by the City of Ottawa.
RECOMMANDATIONS DU COMITÉ
Que le Conseil:
1.
approuve la
Politique relative à la cession de biens immobiliers ci-jointe en tant que
Document 1 et les Procédures relatives à la cession de biens immobiliers
ci-jointes en tant que Document 2, qui établissent un processus transparent et
responsable pour la cession de biens appartenant à la Ville, notamment la
notification du public; et
2.
abroge le
Règlement 2002-38, modifié, règlement de la Ville d’Ottawa sur l’établissement
de procédures, y compris la notification du public, régissant la vente de biens
immobiliers appartenant à la Ville.
DOCUMENTATION
1. City Treasurer’s report dated 28 February 2012 (ACS2012-ICS-REP-0004).
Finance and Economic Development Committee
Comité de finances et du développement
économique
and Council / et au Conseil
28 February 2012 / 28 février 2012
Submitted by/Soumis par : Nancy Schepers, Deputy City Manager/Directrice
municipale adjointe, Planning and Infrastructure /
Urbanisme et Infrastructure
Contact Person/Personne ressource : Gordon
MacNair, Director
Real Estate Partnerships and Development
Office/
Directeur, Partenariats et Développement en immobilier
(613) 580-2424 x 21217, Gordon.MacNair@ottawa.ca
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Ref N°: ACS2012-ICS-REP-0004 |
SUBJECT:
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OBJET :
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politique
et procédures relatives à la cession de biens immobiliers |
That the Finance and Economic Development Committee recommend Council:
1. Approve the Disposal of Real Property Policy attached as Document 1 and the Disposal of Real Property Procedures attached as Document 2, which establish a transparent and accountable process for the disposal of City-owned property, including the giving of notice to the public; and
2. Repeal By-law 2002-38, as amended, being a By-law of the City of Ottawa to establish procedures, including the giving of notice to the public, governing the sale of real property owned by the City of Ottawa.
Que le Comité des finances et du développement
économique recommande au Conseil :
1.
d’approuver la Politique relative à la cession de biens immobiliers ci-jointe
en tant que Document 1 et les Procédures relatives à la cession de biens
immobiliers ci-jointes en tant que Document 2, qui établissent un processus
transparent et responsable pour la cession de biens appartenant à la Ville,
notamment la notification du public; et
2.
d’abroger le Règlement 2002-38, modifié, règlement de la Ville d’Ottawa sur
l’établissement de procédures, y compris la notification du public, régissant
la vente de biens immobiliers appartenant à la Ville.
By-law 2002-38 was enacted by City Council on 23 January 2002. At that time, Section 193 of the Municipal Act, R.S.O. 1990, Chap. M.45 required that a council of a municipality shall by by-law establish procedures, including the giving of notice to the public, governing the sale of real property. In addition, the Act required that real property must be declared surplus in an open public meeting by by-law or Council resolution. The City’s policy entitled “Disposal of Real Property Policy and Procedures” was appended as a schedule to By-law 2002-38.
Bill 130, the Municipal Statute Law Amendment Act, 2006, proposed amendments to a number of Acts related to municipalities, most notably the Municipal Act, 2001. The Municipal Act, Section 270(1) now requires that a municipality shall adopt and maintain policies with respect to:
· Its sale and other disposition of land;
· The circumstances in which the municipality shall provide notice to the public and, if notice is to be provided, the form, manner and times notice shall be given;
· The manner in which the municipality will try to ensure that it is accountable to the public for its actions, and the manner in which the municipality will try to ensure that its actions are transparent to the public; and
· The delegation of its powers and duties.
The purpose of this report is to update the City’s policy and procedures regarding the disposal of real property to consolidate Council-approved directions over the past ten (10) years that amend the Policy and Procedures and, to comply with the current Municipal Act requirements.
The Disposal of Real Property Policy and Disposal of Real Property Procedures, attached as Documents 1 and 2 respectively, establish a transparent and accountable process for the disposal of the City’s surplus real property assets in accordance with the requirements of the Municipal Act. Consistent with By-law 2002-38, the updated Policy and Procedures reflect the same basic principles applicable to the disposal of real property, including market value and the requirement for an appraisal and public notice. The updated Policy and Procedures also reflect the following:
1. The provisions of By-law 2009-354 that:
· Delegate the authority to the Finance and Economic Development Committee (FEDCO) to declare real property to be surplus to the City’s requirements; and
· Delegate the authority to the Director of Real Estate Partnerships and Development Office (REPDO) to declare non-viable real property (real property for which a building permit cannot be granted because it is landlocked, of insufficient size and shape to permit development unless developed in conjunction with abutting land) to be surplus to City requirements, subject to the concurrence of the ward Councillor.
2. Notification to abutting owners has been established as the method of giving notice for non-viable properties as non-viable properties are only of utility to the abutting property owners.
3. By-law 2009-354, which delegated authority to the Director of REPDO to declare, with the concurrence of the ward Councillor, non-viable properties surplus was, in accordance with Governance Objective 1 of the 2007-2010 City Strategic Plan, intended to reduce the requirement of Council and Standing Committees to address transactional approvals and provide greater autonomy for the ward Councillor in ward matters.
With respect to the disposal of closed road allowances, the former Municipal Act required that land to the midpoint of a road allowance must be offered for sale to each adjacent landowner. This requirement no longer exists and the City can now sell a closed road allowance to any, or only one, abutting owner. While the general practice is to offer these non-viable properties to the abutting owners and to divide the land accordingly, the Municipal Act and this amendment allow the Director of REPDO, with the concurrence of the ward Councillor, to negotiate the disposal of the non-viable property to one or more abutting owner.
The flexibility of the Director of REPDO to direct negotiations with one or more abutting owners of a non-viable closed road allowance, with ward Councillor concurrence, will be used when the best interests of the City are served to meet economic, social, cultural or environmental initiatives. Some examples where this might be the preferred approach would include situations where dividing the property would restrict access to one abutting owner, or where disposal to one owner would enable infill development in accordance with the Official Plan and be supported by Planning and Growth Management and the Ward Councillor.
In situations where there are objections or disputes among abutting owners regarding the proposed disposal of a closed road allowance, the ward Councillor may lift delegated authority and a report would move forward to FEDCO for resolution.
4. The practice with respect to the proceeds from the disposal of real property has been to direct the funds to the City’s Sale of Surplus Land Account, unless otherwise directed by City Council. This is a non-departmental corporate operating account. The Disposal of Real Property Policy now formalizes this practice to clearly establish that any deviation requires the approval of City Council.
In compliance with the Housing First Policy, approved by Council on 13 July 2005, where City-owned residentially zoned property is being sold without a condition requiring an affordable housing component, 25% of the proceeds from the sale will continue to be credited to a housing fund to be used for the development of affordable housing elsewhere in the City.
ENVIRONMENTAL IMPLICATIONS
As established by the Disposal of Real Property Procedures, REPDO staff will complete a review to determine whether an independent environmental site assessment is warranted prior to the disposal of any real property.
There are no rural implications associated with this report.
Public consultation has not been undertaken as this is a corporate administrative policy.
This is a city-wide report.
The Housing First Policy, approved by Council on 13 July 2005, establishes priority consideration to the Housing Branch in the identification of potentially surplus City-owned property to be used in achieving the City’s affordable housing program targets. The policy also requires that the Official Plan target of 25% affordable housing, be met on any City-owned property sold for residential development. Where residential properties are disposed of without a condition requiring an affordable housing component, 25% of the proceeds from the sale are to be credited to the social housing reserve fund to be used to support the development of affordable housing elsewhere in the City.
There are no risk implications to implementing the recommendations of this report.
In accordance with the City Strategic Plan of increasing the availability of affordable housing, the Disposal of Real Property Procedures identifies that all potentially surplus properties be reviewed by the Housing Services Branch to identify opportunities for affordable housing projects and partnerships. Such properties may be held by the Housing Services Branch and developed when appropriate funding becomes available through Action Ottawa and typically with capital funding from the provincial and federal governments. This also advances the City Strategic Plan objectives around consolidating various funding vehicles to ensure financial resources are available to meet infrastructure renewal needs, including affordable and social housing.
There are no technology implications with regard to this report.
There are no financial implications associated with the recommendations in this report.
ACCESSIBILITY IMPACTS
There are no accessibility impacts with regard to this report.
Document 1 Disposal of Real Property Policy
Document 2 Disposal of Real Property Procedures
Upon approval of the recommendations in this report, the City Clerk and Solicitor is authorized to place a by-law on the agenda of City Council to repeal By-law 2002-38, as amended.
Disposal of Real Property Policy DOCUMENT 1
Approved By: City Council
Category: General Administration
Approval Date: November 14, 2001
Effective Date: November 14, 2001
Revision Approved By:
Revision Date:
Review Date:
Policy Statement
The City of Ottawa shall dispose of surplus real property in an open and transparent manner that maximizes its social, economic, environmental and cultural return to the City.
Purpose
To ensure that transparent and accountable processes are followed in the disposal of all real property and to ensure that returns are fair, reasonable and in the best interests of the City.
Application
This policy applies where real property is disposed of by the City of Ottawa.
The City’s Real Estate Partnerships and Development Office (REPDO) shall undertake the disposal of real property in accordance with this policy, unless waived by City Council.
This policy applies to all City of Ottawa employees, and any agents or assigns authorized to dispose of real property on behalf of the City.
Policy Requirements
1. General
1.1 Where real property is proposed to be disposed of, it shall first be determined to be viable or non-viable by the Director of REPDO.
1.2 Subject to Section 1.3, real property shall be disposed of at market value.
1.3 Notwithstanding Section 1.2, City Council may, unless prohibited by the Municipal Act, authorize the disposal of real property at less than market value if, in its opinion, it is in the best interests of the City to do so.
1.4 All City-owned real property is a corporate asset and not an asset of any individual department. Monies received from the disposal of any real property shall be deposited to the City’s Sale of Surplus Land Account, unless otherwise directed by City Council.
1.5 This policy shall not apply to the disposal of real property which is the subject of an agreement entered into by the City for the provision of municipal capital facilities pursuant to section 110 of the Municipal Act.
1.6 The disposal of a surplus road allowance to be constructed as a future road and the disposal of surplus road widening requirements shall be carried out in accordance with the Council-approved policy statements on the disposal of road allowances. A surplus subdivision block no longer required for a future road shall be carried out in accordance with the Council-approved policy statements on disposal of road allowances, unless the subdivision agreement requiring the conveyance of the subdivision block to the City directs otherwise. All other surplus closed road allowances shall be disposed of in the same manner as any surplus real property, in accordance with this policy.
2. Conditions for the Disposal of Real Property
Unless otherwise stated in this policy, the following conditions must be met before the disposal of any real property:
2.1 The real property shall be declared surplus to current or future program or operational requirements of the City
2.2 At least one (1) appraisal of the real property shall be obtained
2.3 Notice of the proposed disposal shall be provided to the public.
3. Authority to Declare Surplus
3.1 All viable real property shall be declared surplus by the Finance and Economic Development Committee (FEDCO).
3.2 Non-viable real property shall be declared surplus by the Director of REPDO provided that:
· The Councillor of the ward in which the non-viable real property is located concurs with such declaration.
· Notice of the proposed disposal of the non-viable real property is provided to all abutting owners.
· An appraisal is obtained for the non-viable real property.
· The disposal of the non-viable real property is at market value.
4. Appraisals
4.1 At least one (1) appraisal estimating the current market value of the property shall be obtained. Appraisal reports shall remain confidential until the disposal is completed.
4.2 Notwithstanding Section 4.1, the requirement to obtain an appraisal shall not apply to the disposal of real property 0.3 metre or less in width, acquired in connection with an approval or decision under the Planning Act.
5. Notice of Proposed Disposal
5.1 Prior to the disposal of any viable real property, notice of the proposed disposal shall be provided to the public by one or more of the following methods:
· Posting a sign on the real property for a period of not less than ten (10) days.
· Advertising the real property for disposal in two newspapers having general circulation in the City (English and French language newspapers); identifying the location of the real property by referencing the municipal address or legal description, or both; and stating the process for submission of an offer to purchase.
· Publishing in two newspapers having general circulation in the City (English and French language newspapers) of the FEDCO agenda which identifies a real property disposal transaction to be considered by the Committee.
5.2 Prior to the disposal of any non-viable real property, written notice by regular mail shall be provided to all abutting owners.
5.3 In addition to the methods of providing notice described in Section 5.1 and 5.2, notice of the proposed disposal of viable real property shall include advertising on Ottawa.ca.
5.4 Despite Sections 5.1 and 5.2, notice of the disposal of real property that has been vested in the City, pursuant to Part XI – Sale of Land for Tax Arrears – of the Municipal Act, 2001, shall, at a minimum, be by advertising on Ottawa.ca.
5.5 No notice shall be required for real property that is re-purchased by an owner in accordance with Section 42 of the Expropriations Act.
Responsibilities
City Council approval is required for the disposal of real property where the total revenue exceeds the maximum amount pursuant to the Delegated Authority By-law 2011-28, as amended.
Finance and Economic Development Committee (FEDCO) approval is required to: declare viable real property surplus and to declare non-viable real property surplus when the ward Councillor does not concur with a declaration of surplus being made by the Director of REPDO.
Ward Councillor concurrence is required for the Director of REPDO to declare non-viable real property surplus.
Director of Real Estate Partnerships and Development Office, with the concurrence of the ward Councillor, may declare non-viable real property surplus. The Director shall report on the exercise of this authority to FEDCO on a semi-annual basis.
Manager of Realty Services Branch or Manager of Realty Initiative and Development Branch shall ensure that, an appraisal is obtained and public notice is given, in accordance with this policy.
Office of the City Clerk and Solicitor is responsible for providing legal services and advice on real property transactions and has authority to undertake all legal proceedings required to complete a disposal of real property.
Monitoring/Contraventions
The Real Estate Partnerships and Development Office shall monitor the application of this policy to ensure that all policy requirements are met.
References
Disposal of Real Property Procedures
Legislative and Administrative Authorities
City of Ottawa Delegation of Authority By-law 2009-354
City of Ottawa 20/20 Official Plan, 2003
City of Ottawa Greenspace Master Plan, 2006
City of Ottawa Official Plan, 2007
City of Ottawa Act, 1999
Expropriations Act
Municipal Act, 2001
Heritage Act,
1990
Planning Act, 1990
Housing First Policy
Policy Statement on the Disposal of Road Allowances
Definitions
Abutting owner – in the case of the disposal of a closed road or highway, an abutting owner refers to an owner, the front, rear or side of whose property is immediately beside the road or highway, but does not include an owner whose property touches either end of the road or highway. With respect to any other real property disposal, an abutting owner is any owner whose real property touches the City’s real property.
Appraisal - a written estimate of current market value prepared by qualified staff of the City of Ottawa or an independent qualified appraiser.
Disposal - the sale or exchange for other real property of any of the City’s real property that has been declared surplus, but does not include the leasing of City-owned property or the granting of an easement or right-of-way.
Market value - the highest price a willing buyer would pay and a willing seller would accept, both parties being fully informed, and the real property being marketed for a reasonable period of time.
Non-viable real property - real property for which a building permit cannot be granted because either it is landlocked, or it is of insufficient size and shape to permit development unless developed in conjunction with abutting land.
Real property - land and/or buildings and all improvements thereon.
Surplus real property - real property that is not required to meet the current or future program or operational requirements of the City and that has been declared to be surplus by City Council or its delegated authority.
Viable real property - real property for which a building permit can be granted.
Keyword Search
Appraisal
Circulation
Disposal
Environmental site assessment
Market value
Notice
Surplus
Enquiries
For more information on this Policy, contact:
Director
Real Estate Partnerships and Development Office
City Manager’s Office
Tel: 613-580-2424, ext. 21217
Disposal of Real Property Procedures DOCUMENT 2
Approved By: City Council
Category: General Administration
Approval Date: November 14, 2001
Effective Date: November 14, 2001
Revision Date:
Review Date:
Application
These procedures apply where real property is disposed of by the City of Ottawa.
The City’s Real Estate Partnerships and Development Office (REPDO) undertakes the disposal of real property in accordance with the Disposal of Real Property Policy and these procedures, unless otherwise directed by City Council.
These procedures apply to all City of Ottawa employees, and any agents or assigns authorized to dispose of real property on behalf of the City.
Procedure Description
1. Inventory Review
Realty Services Branch conducts regular reviews of the City’s real property inventory in order to ensure that unused properties are inventoried, managed effectively and where appropriate, identified as potentially surplus.
2. Sub-Search of Title
Where real property has been identified as potentially surplus, the parcel register shall be obtained from the Registry Office to determine if there are any legal impediments to the disposal of the real property.
3. Internal and Utility Circulation
3.1 Prior to identifying real property as potentially surplus, Realty Services undertakes a circulation to City departments, the ward Councillor, advisory committees and utility agencies to identify any requirement for the real property in order to ensure that the following factors are considered:
· Identification of any City-mandated requirements that could be achieved by the use of the real property.
· Co-ordination of the City’s broad corporate objectives including Strategic and Official Plans.
· Development initiatives by Ottawa Community Lands Development Corporation (OCLDC) that target environmental, cultural, social or economic strategic objectives.
· That housing is a City-mandated program and as such, the Housing Services Branch of the Community and Social Services Department is given the opportunity to utilize the property for housing purposes, in accordance with the Housing First Policy. Non-profit and co-operative housing groups within the City may be afforded the opportunity to acquire the real property at current market value. Should staff and the Financial Services and Economic Development Committee (FEDCO) wish to recommend a grant to a housing provider to offset the acquisition cost where deemed appropriate or to recommend a long-term lease of the real property, this recommendation shall be included as a separate recommendation in the report to FEDCO regarding the surplus real property declaration, and the recommendation of FEDCO on the grant or long-term lease will be forwarded to Council or dealt with as part of the capital budget process.
· That waterfront recreational access is protected in accordance with the Strategy to Recognize and Protect the Public Waterfront Recreational Access Function of Selected Road Allowances on the Ottawa and Rideau Rivers.
· That significant natural features are considered and if required, restrictive covenants or other measures are formulated to establish appropriate protection of such natural features.
· The disposal of real property designated under Parts IV or V of the Heritage Act may be considered. REPDO may include recommendations to retain an independent consultant to confirm the heritage significance of the real property as well as opportunities for restoration or adaptive re-use. The Local Architectural Conservation Advisory Committee is notified of any heritage property being considered for disposal.
· That easement requirements are identified and protected as part of the disposal of the real property.
3.2 City departments shall have twenty (20) working days to provide written requirements or comments in response to an internal circulation.
3.3 Should a requirement be identified by a City department to retain the real property in support of a City-mandated program, the City department shall have three (3) months to demonstrate the fiscal and operational viability of the use or modification of the real property in support of a defined program or service delivery need and the availability of funding in that department’s Long Range Financial Plan.
3.4 Where an interest is expressed by two or more City departments or agencies to retain the real property, the departments or agencies shall comply with Section 3.3 and the Director of REPDO shall convene an ad-hoc committee made up of representatives from each client department, chaired by REPDO, to determine the best use for the property.
4. External Circulation
If no requirement to retain the real property interest is expressed by a City department, an external circulation is completed allowing twenty (20) working days for written expressions of interest to acquire the property. The parties to be circulated include, but are not limited to, the federal and provincial governments, school boards and conservation authorities.
5. Expropriations Act - Former Owner’s Rights
Original acquisition details are determined to confirm the method of acquisition and whether the former owner has a right to re-purchase in accordance with the provisions of the Expropriations Act. Any waiver by the City of the former owner’s rights must be approved by City Council.
6. Appraisal
6.1 An appraisal report estimating the real property’s current market value is completed in support of each disposal, unless otherwise specified in the Disposal of Real Property Policy.
6.2 Where the estimated market value is $750,000 or greater, a second appraisal report is required. In this instance, an independent appraisal firm prepares at least one of the reports. Appraisal reports are based on the “Highest and Best Use” of the asset and are prepared by an accredited appraiser in accordance with the current Standards of the Appraisal Institute of Canada.
7. Environmental Site Assessment
REPDO staff completes a review to determine whether an independent environmental site assessment is warranted prior to the disposal of any real property.
8. Methods of Disposal
The disposal method and negotiation process utilized ensures that transparent and accountable processes are followed in the disposal of real property. The method of disposal is determined based on maximizing the social, economic, environmental and cultural return to the City and takes into consideration factors such as viability, interest expressed from the external circulation, market conditions and availability of resources.
8.1 Any transfer of real property to the Ottawa Community Lands Development Corporation must be approved by City Council.
8.2 Subject to Section 8.1, unless otherwise directed by City Council, the method of disposal from the list below is determined by the Director of REPDO:
· Direct sales for non-viable properties, land exchanges or disposals to government/quasi-government agencies
· Marketing by Realty Services Branch
· Listing Agreement with licensed real estate brokers
· Request for Offers
· Public Auction
9. Notice of Proposed Disposal
Prior to the disposal of any real property, notice of the proposed disposal is given to the public in accordance with the Disposal of Real Property Policy.
Monitoring/Contraventions
The Real Estate Partnerships and Development Office is responsible for monitoring the application of these procedures and ensures that the requirements of the Disposal of Real Property Policy are met.
References
Disposal of Real Property Policy
Legislative and Administrative Authorities
City of Ottawa Delegation
of Authority By-law 2009-354
City of Ottawa 20/20 Official Plan, 2003
City of Ottawa Greenspace Master Plan, 2006
City of Ottawa Official Plan, 2007
City of Ottawa Act, 1999
Expropriations Act, 1990
Municipal Act, 2001
Heritage Act,
1990
Planning Act, 1990
Housing First Policy
Policy Statements on the Disposal of Road Allowances
Strategy to Recognize and Protect the Public Waterfront Recreational Access Function of Selected Road Allowances on the Ottawa and Rideau Rivers
Definitions
Appraisal - a written estimate of current market value prepared by a qualified person.
Disposal - the sale or exchange for other real property of any of the City’s real property that has been declared surplus, but does not include the leasing of City-owned property or the granting of an easement or right-of-way .
Market Value - the highest price a willing buyer would pay and a willing seller would accept, both parties being fully informed, and the real property being marketed for a reasonable period of time.
Non-Viable Real Property - real property for which a building permit cannot be granted because either it is landlocked, or because it is of insufficient size and shape to permit development unless development in conjunction with abutting land.
Surplus Real Property – real property that is not required to meet the current or future program or operational requirements of the City and that has been declared to be surplus by City Council or its delegated authority.
Real Property – Land and/or buildings and all improvements thereon.
Keyword Search
Appraisal
Circulation
Disposal
Environmental site assessment
Market value
Notice
Surplus
Inquiries
For more information on these Procedures, contact:
Director
Real Estate Partnerships and Development Office
City Manager’s Office
Tel: 613-580-2424 ext. 21217