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Policy Title: Land Divestiture Policy
Date adopted by Council: December 13, 2022
1. POLICY STATEMENT
To encourage community growth and contribute to the social and economic
development of the Town of Lunenburg, the Town will divest of surplus land in an open
and transparent process and ensure that the consideration for such disposal is fair,
reasonable, and in the best interest of the Town.
2. PURPOSE
This policy is intended to serve as guidance for the Town of Lunenburg when proposing
to divest of surplus land that is no longer needed for the purposes of the Town, and to
ensure an open and transparent process.
3. SCOPE
This policy and procedures apply to the divesture of surplus land owned by
the Town of Lunenburg.
4. DEFINITIONS
"Appraisal" means an opinion on the fair market value of the surplus land provided by an
Accredited Land Appraiser or such other qualified person as the CAO deems suitable.
"CAO" means the Chief Administrative Officer of the Town of Lunenburg.
"Development" means any erection, construction, alteration, replacement, or relocation
of or any addition to any structure and/or any change or alteration in the use made of
land, buildings, or structures.
"Divestiture" means the sale, exchange, or transfer of any portion of the Town's surplus
land.
"Fair Market Value" means the amount that the land might be expected to realize if sold
in the open market by a willing seller and buyer.
"Immediate Family Member" means any spouse of a Council member or employee of the
Town, and any son, daughter, mother, father, brother or sister of a Council member or
employee and those of the Council members' or employee's spouse; or any other
person who normally resides in the same home as a Council member or employee of the
Town.
"Land" means lands owned by the Town, whether vacant or not, or any other proprietary
interests in lands owned by the Town, and, without limiting the generality of the
foregoing, includes easements, rights-of-way, leaseholds, and includes any interest in
lands under an agreement of purchase of sale.
"Lot" means any existing lot and includes any lot to be created by the filing of a Plan of
Subdivision.
"Subdivision" means the division of any area of land into two or more parcels and
includes a re-subdivision or a consolidation of two or more parcels.
"Surplus Land" means any land declared surplus by the Town that is no longer required
for Town purposes.
"Town" means the Town of Lunenburg.
5. AUTHORITY, LEGISLATION, AND REGULATIONS
In declaring surplus property for divestiture, the Town shall comply with the Municipal
Government Act (MGA) with particular attention to Sections 50, 51, 51A, and 218.
6. RESPONSIBILITIES
4.1 Council
Council declares the land surplus and declares that the lands are no longer required for
Town purposes.
4.2 CAO
The CAO may:
-
Negotiate and include additional items not in conflict with any specific provisions
of this Policy in consideration of the best interest of the Town. The CAO may
seek legal advice in the drafting of the terms and conditions of the Purchase and
Sale Agreement and/or the Real Estate Broker Agreement.
-
Consider a variance in price in the Purchase in Sale Agreement, in accordance
with the MGA.
-
Obtain the services of a legal firm to execute the divestiture of Town lands.
-
Approve and/or amend the provisions and/or terms of a Purchase and Sale
Agreement and/or the Real Estate Broker Agreement, in accordance with the
MGA.
7. GENERAL
7.1 If any provisions of this Policy are inconsistent with the provision of the MGA, its'
Regulations or any other Act, the provisions of the Act or Regulations will prevail.
7.2 This Policy will be consistent with the Town's objectives, by-laws and approved
policies as well as all Provincial and Federal legislation governing the operation of
the Town. Where there is a conflict, the higher or more stringent regulation or
provision will prevail.
7.3 Any Council reports dealing with any divestiture of any Town lands, including the
determination of the sale price and/or negotiations related thereto, shall be dealt with
in-camera in accordance with Section 22(2)(a) of the MGA until such time as
required to be dealt with at an open meeting of Council.
7.4 The Town may refuse any offer of purchase at its sole and absolute discretion.
7.5 Divesting of surplus land will be subject to any pre-existing benefits, burdens, and/or
interests (including, but not limited to easements) of title.
7.6 To avoid conflict of interest the following persons are precluded from purchasing
Town surplus property, except when said property directly abuts their existing
property in-keeping with Section 51A of the MGA:
a. A member of Town Council;
b. an employee of the Town;
c. an immediate family member; or
d. a company in which a person referred to in clause (a), (b), or (c) has an interest.
8. ADMINISTRATIVE PROCEDURES
8.1 Requests for Municipal Property
8.1.1 Council may consider the divesting of Town lands upon written request
prepared by the prospective purchaser or their agent.
8.1.2 Council may deem properties surplus without a request if it is felt that the
property is no longer required for Town purposes.
8.2 Determination of Surplus Land
8.2.1 Prior to divesting any lands, Council shall, by resolution, declare the land
surplus and declare that the lands are no longer required for Town purposes.
8.2.2 Before declaring a property to be surplus, a report and recommendation shall
be submitted for Council's consideration.
8.2.3 The evaluation criteria in Appendix A will be used to create a land profile and
will form part of the report referred to in Section 8.2.2.
8.2.4 Prior to divesting any surplus land, the Town may wish to obtain or require:
a. clear title and migration into the Land Registration Office;
b. a legal survey plan;
c. a subdivision plan, if required; and
d. an appraisal for Fair Market Value.
8.3 Public Information Meeting (PIM)
8.3.1 Prior to divesting any surplus Residential Use (RL, RM, RH, RUR) Zone
lands as defined under the Town's Land Use By-law, Council shall hold a
Public Information Meeting (PIM) to advise the public and to seek public
comments into the possible divestiture of Town land.
8.3.2 Prior to divesting any surplus lands not zoned as Residential Use (RL, RM,
RH, RUR) Zone as defined under the Town's Land Use By-law the holding of
a Public Information Meeting (PIM) to advise the public and to seek public
comments into the possible divestiture of Town land shall be at the discretion
of the CAO.
8.3.3 Notwithstanding Article 8.3.1 above, those lands intended for sale under
Section 51A of the Municipal Government Act, "Sale to Abutting Owner", the
holding of a Public Information Meeting (PIM) to advise the public and to seek
public comments into the possible divestiture of Town land shall be at the
discretion of the CAO.
8.3.4 Notwithstanding Article 8.3.1 above, those lands that are less than the area
and/or frontage requirements of the Lot Zone as described on the Lot Zone
Map of the Land Use By-law, the holding of a Public Information Meeting
(PIM) to advise the public and to seek public comments into the possible
divestiture of Town land shall be at the discretion of the CAO.
8.3.5 A notice of a Public Information Meeting pursuant to this Policy may be
advertised solely through the Town's website and social media posts a
minimum of five (5) clear days prior to the meeting. Such notice may also be
published in the local paper a minimum of five (5) clear days prior to the
meeting at the discretion of the CAO.
8.4 Purchase and Sale Agreement
8.4.1 The following conditions may be included in a purchase and sale agreement:
a. Deposit:
i.
A 10% deposit against the final purchase price within specified timeline of
an accepted offer.
ii.
Any deposit shall be returned to the purchaser, without interest, if the
Town fails to fulfil the Terms of the Purchase and Sale Agreement.
iii.
Any deposit shall be forfeited should the purchaser fail to complete the
sale in accordance with the Terms of the Purchase and Sale Agreement
in addition to any other rights, costs or damages that the Town may
otherwise be entitled to.
b. Sale of the property shall be completed within specified timeline of an accepted
offer.
c. Construction Timelines:
i.
if construction of a development is relevant to the sale of the property, the
Purchase and Sale Agreement may require that Commencement of
Construction shall be not later than a specified timeline from the Date of
Closing.
ii.
If construction of a development is relevant to the sale of the property, the
Purchase and Sale Agreement may require the Development to be
completed no later than a specified timeline from the Date of Closing.
8.4.2 Purchase and Sale Agreements should, if applicable, include clear direction
related to any buy-back provisions. If any buy-back provisions are
incorporated within the Purchase and Sale Agreement, the Agreement shall
layout the provisions to recoup any costs associated with returning the lot to
its original pre-purchased condition.
8.5 Real Estate Broker
8.5.1 The CAO may decide, at their discretion, to use the services of a real estate
broker.
8.5.2 The following conditions may be included in a real estate broker agreement:
a. Commission:
i.
the percentage of the real estate commission;
ii.
the timeline when the real estate commission is payable to the
broker within a specified timeline of closing.
b. Municipal Liability:
i.
a clause regarding, if for any reason, the transaction does not
close, the Town is not responsible for the payment of the real
estate commission nor is the Town liable for any other payments,
penalty, action, or future consideration to the broker.
9. EXEMPTIONS
Properties that are up for sale due to tax arrears pursuant to Section 134 of the MGA are
exempt from this Policy.
10. APPENDICES
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Appendix A: Land Profile Evaluation Tool
Policy Title: Land Divestiture Policy
Appendix: A - Land Profile Evaluation Tool
1. Specify the location and area of the land (i.e. civic address, PID #, survey)
2. Specify the monetary value of the land (assessed/appraised value).
3. What form of access is there to the property? (public road, private road, easement).
4. Does the property have any known contamination/environmental concerns based on
previous environmental studies, if any, or does an environmental assessment need to be
conducted?
5. Does the property have any architectural, historical, or recreational value? Does the
Town's ownership have a role in preserving these values or are they protected by other
means.
6. Does the property have any ecological/conservation value? Does the Town's ownership
have a role in preserving these values or are they protected by other means.
7. Has fair Market Value for the land been determined?
8. Is the land adjacent or nearby water (river, lake, ocean)?
9. Is the land already in use? Is there a lease agreement in place?
10. Are there any known public concerns relating to the divestiture of the property?
11. Is there possible future liability/gain (i.e. useful site in future, or site features such as
erosion that suggest any divestiture would result in a liability)?
12. Has an electrical scoping evaluation taken place?
13. Do stakeholders such as nearby landowners, community associations, and/or members
of the public need to be consulted?
14. Consideration of the current and future carrying costs associated with not proceeding
with the potential sale, including, but not limited to, cost of operation, maintenance and
utilities.
TOWN OF LUNENBURG
Clerk's Annotation for Official Policy Book
Policy: Land Divestiture Policy
Date of Notice to Council: September 13, 2022
Date of Adoption: December 13, 2022
I certify that this Policy was adopted by Council as indicated above.
__________________________
Municipal Clerk
Date: December 14, 2022