The Corporation of the City of Belleville By-Law Number 2022-133
By-Law to Regulate the Acquisition and Disposition of Real Property
Whereas Section 270(1) of the Municipal Act, 2001, s.o. 2001, c. 25, as amended, requires every municipal Council to adopt and maintain policies with respect to its acquisition, sale and other disposition of land;
And Whereas Council of The City of Belleville has established procedures, including those regarding the giving of notice to the public, governing the acquisition, sale or other disposition of real property. Those procedures are set out in this bylaw.
Now Therefore, The Corporation of the City of Belleville by the Council thereof hereby enacts as follows:
1. Definitions and Interpretation:
i) “Acquisition” means a transaction that adds new real property by purchase, lease, exchange, gift, trust, or any other means.
ii) “Appraiser” means members of the Appraisal Institute of Canada who have completed the admission requirements of Appraisal Institute of Canada and also participate in the Professional Liability Insurance Program of the Appraisal Institute of Canada.
iii) “Director, Corporate Services” means the person who holds that position and his or her delegate(s) or, in the event of organizational changes, another person designated by Council.
iv) “City”, “City of Belleville” means the Corporation of the City of Belleville and includes its entire geographic area.
v) “City Clerk” means the person within the administration of the City which fulfils the function of the City Clerk as required by the Municipal Act, 2001.
vi) “Class” is used in this By-law to denote a type of property for the purposes of assigning procedures required for Disposition. Section 2.01 outlines the Classes of property used by the City.
vii) “Council” or “City Council” means the elected municipal council for the City.
i) “CUSPAP” means the Canadian Uniform Standards of Professional Appraisal Practice of the Appraisal Institute of Canada.
ii) “Disposition” for the purposes of this By-law:
a. the transfer of an Easement;
b. the entering of an agreement to provide for an Encroachment;
c. the granting of a license to use property which is less than a lease;
d. the granting of municipal consents to utility companies for the placement of physical property on municipal rights of way;
e. the granting of franchises relative to the occupation of municipal rights of way;
f. the completion of an at arm’s length transfer including leases with a term of 21 years or more;
- i) “Easement” means a registered or unregistered formal right to use property belonging to someone else.
- ii) “Encroachment” means permitted occupancy of land by buildings or structures, or parts of buildings or structures, which would be trespassing but for the permission.
- iii) “Full Cost Recovery” means all labour, equipment, material and any related
- iv) “Manager Real Estate and Property Services” means the person who holds that position and his or her delegate(s) or, in the event of organizational changes, another person designated by the Director, Corporate Services.
- v) “Security” involves the pledging of an asset in order to secure a positive obligation. As an example, real property is sometimes acquired by the City as Security for a developer’s performance in accordance with the terms and conditions of a development agreement.
- vi) “Real Property” means any and all rights, interests or benefits in land.
- vii) “Reserves” are parcels of land, one foot or less in width, acquired in conjunction with an approval or decision under the Planning Act.
1.2 Interpretation Rules:
- i) The Schedules attached to this by-law form part of the by-law and are enforceable as such.
- ii) The words “include” and “including” are not to be read as limiting the meaning of a word or term to the phrases or descriptions that follow.
- iii) Wherever this By-law refers to a person or thing with reference to gender or the gender neutral, the intention is to read the By-law with the gender applicable to the circumstances.
- iv) References to items in the plural include the singular, as applicable.
1.3 Statutes: References to laws in this by-law are meant to refer to the statutes, as amended from time to time that are applicable within the Province of Ontario.
1.4 Severability: If a court or tribunal of competent jurisdiction declares any portion of this by-law to be illegal or unenforceable, that portion of this by- law shall be considered to be severed from the balance of the by-law, which shall continue to operate in full force and effect.
2. Classes of Property or Property Dispositions
a. Classes: This section describes four classes of real property held by the City from time to time for the purposes of distinguishing procedures applicable in accordance with this By-law.
- i) Class One: All real property which does not fall into any of the other classes set out in this section.
- ii) Class Two: Real property which is a highway or a road allowance, open or closed, travelled or un-travelled.
- iii) Class Three: Real property which, in the opinion of the Manager Real Estate and Property Services, has no market value except as a lot addition to one or more abutting properties.
- iv) Class Four: Real property which is being held temporarily by the City as Security or a Reserve.
b. Procedures: Procedures for the Disposition of real property held by the City vary depending on the Class of property in question (as set out in Section 2.01)
c. Exemptions: This By-law does not apply to the sale of property by the City pursuant to the Municipal Tax Sales Act.
3. Procedures Concerning the Sale of Land in Class One
a. Declaration as Surplus: Prior to the disposition of any parcel of land in Class One, the Council of the City shall, at a meeting open to the public, declare the land to be surplus and no longer required by the City for municipal purposes. These declarations can be revoked by the City at any time prior to a disposition of the same land.
b. Considerations: In determining whether or not any property is surplus to municipal needs, the Council of the City may consider any relevant information available to it. This includes information that the proposed purchaser or lessee wishes to exchange land with the City, and the parcel to be acquired may be a substitute for the City’s property (which would otherwise not be surplus to the City’s needs).
c. Appraisal: Subject to Section 3.04, it is a requirement that, prior to the acquisition or disposition of any real property by the City of Belleville, the Manager Real Estate and Property Services shall obtain at least one appraisal of its fair market value. The appraisal shall carry the designation of ‘AACI’ being an Accredited Appraiser with the Canadian Institute or ‘CRA’ being a Certified Residential Appraiser. The Appraisal business or firm that is retained by the City of Belleville through the Manager Real Estate and Property Services or by an independent third party to complete an assignment as part of a negotiation with the City of Belleville regarding real property, must supply to the City of Belleville Manager Real Estate and Property Services, in writing, notice that the appraisal will be completed by a “Candidate Appraiser” prior to the assignment being accepted by the business or firm.
Appraisals that are completed by a “Candidate” Appraiser must be co- signed by a designate Appraiser “Co-signature” in accordance with CUSPAP of the Appraisal Institute of Canada. Further, the “Co-signature” must provide proof in writing through an Appraisal Co-signature Form provided by the City of Belleville through the Real Estate and Property Services Department that that the “Co-signature” for the “Candidate Appraiser” physically accompanied the “Candidate Appraiser” on the inspection of the real property at the same time on the same day. Each appraisal must include a consultation from a qualified land use planner addressing the applicable Official Plan and Zoning By-law provisions and including a list of all permitted uses.
d. Exemptions: The City may, at its discretion, dispose of surplus real property without obtaining an appraisal of fair market value if the circumstances of the disposition meet the criteria in this section.
i) The disposition involves a type of property listed in Schedule ‘A’.
ii) The disposition is to one or more public bodies as set out in Schedule ‘B’.
e. Public Notice: Subject to Section 3.06, prior to the Disposition of any surplus real property, the Manager Real Estate and Property Services shall provide notice to the public of the proposed Disposition in each of the manners described in this section.
- i) An advertisement shall be placed in a newspaper which, in the City Clerk’s opinion, is of sufficiently general circulation in the City of Belleville to provide members of the public with reasonable notice.
- ii) The disposition shall be described in the public agenda for a City Council meeting.
- iii) Notice shall be provided by regular mail to those persons and public bodies listed in Schedule ‘C’.
- iv) Notice shall be posted on the City of Belleville website.
4. Procedures Concerning the Disposition of Land in Class Two
a. Inquiries about Class Two Land: The City cannot consider disposition of any land in Class Two unless it has never been opened as a public highway, or unless it has been closed as a public highway. Where inquiries are made regarding the purchase of these lands, and the highway has not been closed, a closure procedure is required and any claims must be considered, in accordance with the Municipal Act, 2001, before disposition can occur.
b. Disposition of Closed Highways: In considering whether a highway should be closed, the Council may also consider whether the land is surplus to municipal needs. Where Council declares the property surplus, this Section applies to the disposition. A declaration that the lands are surplus can be revoked by the City at any time prior to a disposition of the same lands and the City reserves the right to ultimately decide not to close the highway or dispose of the land.
c. Pricing: Subject to Section 4.04, at the same meeting at which the Council considers declaring any land in Class Two surplus, it may set a price for the land to be disposed of. An appraisal shall be required as set out in Section 3.03 unless the exemptions set out in Section 3.04 apply.
d. Certain Set Pricing: Schedule “D” to this By-law sets the prices for certain types of land in Class Two if they are sold to an owner of lands abutting the closed highway as shoreline or highway frontage.
e. Public Notice: As required by Section 34(1) of the Municipal Act, 2001, public notice of a by-law to permanently close or alter a highway shall be given to the public and to such other persons, authorities or bodies as it deems necessary and proper in the circumstances.
Prior to the sale of real property other than industrial land, the Property Administrator shall give notice to the public of the proposed sale by one or more of the following methods:
- i. by publication in a newspaper that is, in the Director of Corporate Services/Clerk’s opinion, considered to be of sufficient general circulation in the area to provide reasonable notice. Such publication shall be once per week for two consecutive weeks;
- ii. by posting a notice on the real property proposed for sale;
- iii. by posting the notice on the City of Belleville website;
- iv. any other means of communication which, in the opinion of Council acting reasonably and in good faith, is deemed to be appropriate in the circumstances in order to give notice to the public.
Such notice shall include the proposed disposition, if applicable. In addition, the provisions of Section 3.05 (b) apply to the disposition of any land in Class Two.
Notice to the public as mentioned in Subsection 5(b) (i) shall be at least thirty (30) days prior to the consideration of offers by Council and include the legal description and municipal address of the property, the terms of the sale, deadline for receiving offers and special conditions relevant to the sale.
f. Manner of Disposition: Any lands in Class Two, except those set out in Section 4.04, shall be disposed of by one of the manners of sale set out in Section 7.00.
g. Procedures: None of the other provisions of Section 3.00 apply to the disposition of any land in Class Two.
5. Procedures Concerning the Disposition of Land in Class Three
a. Declaration as Surplus: The provisions of Section 3.01 apply to the disposition of any land in Class Three.
b. Procedures: None of the other requirements of Section 3.00 apply to the disposition of any land in Class Three.
6. Procedures Concerning the Disposition of Land in Class Four
6.1 Declaration as Surplus: Land held as Security or as a Reserve are, by their nature, surplus to the City’s needs once the obligations or conditions secured have been performed. Accordingly, it is not necessary to declare land held as Security or as a Reserve as surplus for the purposes of its disposition back to the developer, in accordance with the terms of a development agreement or conditions of development, or, in the case of Security, for disposition on the general market in satisfaction of the Security.
6.2 Appraisal: Section 3.04 applies to the disposition of any land in Class Four.
6.3 Procedures: None of the other requirements of Section 3.00 apply to the disposition of any land in Class Four.
7. Manner of Sale for All Classes of Real Property
a. Manners of Sale: This section lists methods by which real property may be disposed of.
- A public call for tenders;
- A public request for proposals, seeking to optimize development concepts as well as price (within the context of the development);
- Sale by public auction;
- Sale through listing with a registered real estate broker on the multiple listing system or otherwise;
- Direct sale through advertisement of the property (by posting of signs or otherwise) soliciting offers to the Manager Real Estate and Property Services; or
- Direct sale through approach to the City by interested purchasers or potential purchasers.
b. Default Manner of Sale: Unless Council provides otherwise when declaring property surplus, the manner of sale used for the disposition of lands shall be by way of Section 7.01(e) with the Manager Real Estate and Property Services to negotiate with the parties as per usual real estate practices.
c. Consideration: The City may accept consideration for property dispositions through any one or a combination of: money, land exchange, or any other manner which staff may recommend, and Council approve.
d. Ultimate Disposition: The Council shall, at a regular meeting, open to the public, consider the ultimate disposition of any Class of real property. Council may accept any offer, notwithstanding that it might not be the highest offer received or may determine not to dispose of the property in question at that time.
8. Certificate of City Clerk
a. Certificate: Where requested by the purchaser or lessee of surplus property, the City Clerk shall issue a certificate with respect to the Disposition of the land.
b. Contents: The certificate referenced in Section 8.01 shall verify that, to the best of the City Clerk’s knowledge and belief, all obligations and requirements of this By-law have been complied with, and that the appraisal required by this By-law has been obtained. Where an appraisal was not obtained, the City Clerk shall set out in the certificate the reasons why the appraisal was not required.
c. Registration: The certificate shall be included in the Transfer/Deed of Land registered pursuant to the Registry Act or the Land Titles Act, as applicable. Where it is included in the Transfer/Deed of Land and registered, it is deemed to be sufficient proof that the provisions of this By- law have been complied with.
9. Full Cost Recovery Costs: A non-refundable application fee as described in Schedule D must be submitted with each inquiry about City owned land. The application fee will offset any expenses that the City will incur in connection to the initial review of a request. In addition, any costs that are incurred by the City in connection to a request concerning City owned land or the disposition of surplus property shall be payable by the applicant or the proposed purchaser. Such costs shall include:
- any legal costs incurred by the City;
- any costs incurred through the completion of any required public notification;
- any costs incurred through the completion of any required reference plans;
- any costs incurred through the completion of any appraisals that are necessary;
- and any miscellaneous costs that are incurred by the City.
10. Administration
a. Administration of By-law: The Manager Real Estate and Property Services is responsible for the administration of this By-law.
b. Caveat: Any requests to purchase City owned land received prior to the passage of this by-law shall follow the fees and process negotiated, providing the disposition is carried through by December 31, 2022 at which point this By-law will apply.
c. Effective Date: This By-law shall come into force on the date it is finally passed.
d. THAT By-law Number 99-19 and all other By-Laws or parts thereof inconsistent herewith be and the same are hereby rescinded.
Schedule "A" To City of Belleville By-Law Number 2022-133
Passed This 26th Day of September, 2022
- Land 0.3 metres or less in width acquired in connection with an approval or decision under the Planning Act, R.S.O. 1990, c. P.13.
- Closed highways, if 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, R.S.O. 1990, c. E. 26.
- Easements granted to public utilities or to telephone companies.
Schedule "D" To City of Belleville By-Law Number 2022-1 33
Passed This 26‘“ Day of September, 2022
Fee:
A non-refundable fee of $135.00 must be submitted with each request about City owned property. The fee is to will cover the initial costs that are associated with the preliminary review/research that is to be completed in connection to a request about City owned property. In the event that the associated costs exceed $135.00 the applicant will notified so that they are aware that they will be responsible for the payment of those costs.
Road Allowances by Shorelines or Strips of Road Allowances Along Traveled Highways:
a. The price for property meeting this description in Section 4.04 of this Bylaw is:
- $15.00 per linear foot of highway frontage for strips of road allowances along a traveled highway or $20.00 per linear foot of water frontage for shoreline road allowances;
b. costs of the land transaction including the cost of all required notices and surveys, documents required to be registered in the Land Registry Office, all legal fees incurred by the municipality in connection to the sale and any other costs associated with the transaction. The purchaser will be required to make a non-refundable deposit of $1,000.00 in advance of the road closing to cover the said costs; plus
c. a fee of $1,500.00 to cover the City’s staff time expenses
Landlocked Lot Additions:
Except in exceptional circumstances, in the opinion of the Manager Real Estate and Property Services, the price for property meeting the description in paragraph 3 of Schedule ”A” of this By-law is:
a. where the parcel is an addition to a farm, a price of $1500.00 per acre, plus the amounts in parts (c) and (d);
b. where the parcel is an addition to a lot other than a farm, a price of$1.00 per square foot of land, plus the amounts in parts (c) and (d);
a fee of $1,500.00 (to cover the City’s staff time expenses); and all costs of the Land transaction including the cost of all required notices and surveys, documents required to be registered in the Land Registry Office, all legal fees incurred by the municipality in connection to the sale and any other costs associated with the transaction.