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Real Property Policies and Procedures

Real Property Acquisition Policy

Approved By: City Council
Category: General Administration
Approval Date: April 3, 2007
Effective Date: April 3, 2007
Revision Date: October 29, 2019

Policy statement

The City of Ottawa acquires real property rights as required, for a municipal need consistent with City-mandated programs, projects and policies. The general direction for this Policy is outlined in Section 5.2.1.4: Acquisition and Holding of Land, of the City of Ottawa Official Plan (as amended and in force from time to time) and associated City Growth Management Plans.

Purpose

The purpose of this Policy is to ensure that a consistent and equitable framework is followed in acquiring real property interests which support Council-approved projects, programs and policies.

Application

This Policy applies where real property rights are acquired by the City of Ottawa and includes any right, interest or benefit in land, but is not limited to, fee simple acquisitions, easements, rights-of-way and other limited interests such as joint-use agreements, temporary working occupancies, consents to enter and licences.

This Policy applies to all City of Ottawa employees, any agents or assigns acting on behalf of the City and consultants authorized to acquire real property on behalf of the City. Real property such as road dedications and easements that are acquired through the planning/subdivision processes will continue to be dealt with as part of that process and in accordance with the Planning Act and any regulations therein.

In addition, the following municipal and provincial legislations provide the City of Ottawa with the authority to acquire land:

  • Municipal Act, 2001, s. 6
  • Expropriations Act, 1990
  • City of Ottawa Act, 1999, s.12.3 (1) and s.12.5 (1)
  • Housing Development Act, 1990, c. H.18, s. 17
  • Heritage Act, 1990, s. 22, 36, 37 and 45

Policy requirements

The City’s Corporate Real Estate Office (CREO) shall undertake the acquisition of real property interests in adherence with this Policy, unless otherwise directed by the City Manager or City Council.

Departmental needs assessment

Prior to initiating an acquisition, other than lands required for infrastructure, acquisition of environmental/waterfront lands and pursuant to the Planning Act, the client department will prepare on its behalf, or on behalf of a partner agency, a project charter or similar document such as a business case that sets out the justification and rationale for the proposed acquisition. All assessments shall be vetted through CREO, in collaboration with the client department to determine whether the City’s existing real property inventory, or any capital works initiatives, may fulfill the client’s requirements. This process could include an asset rationalization. Should it be determined that the client’s needs cannot be met through the existing inventory, CREO will initiate the acquisition.

Council approval

City Council approval of a capital project requiring property interests shall include authority for the appropriate person(s) or body to initiate and undertake legal surveys, appraisals, negotiations, expropriations, legal and other such related activities, as required.

A budget item must be approved for the program or project, including the costs of acquiring real property and operational budget impacts, both of which are to be provided by the client prior to CREO being engaged to acquire property.

Funding

Funding for the acquisition of real property must be identified through a Council- approved budget item, specific to the program, project or policy defining the need, or allocated from an approved departmental budget, with approval of the General Manager of the client department.

Methods of acquisition

Negotiation

Negotiation is the preferred method of obtaining real property rights. Negotiation is a process by which the City and the property owner (Vendor) reach a mutually acceptable agreement which complies with the requirements of this Policy.

Expropriation

Expropriation through the statutory process required by the Expropriations Act will be used only where a negotiated acquisition or Section 30 Agreement is not reasonably possible. The City of Ottawa has the authority to expropriate land in accordance with the provisions of the Expropriations Act, R.S.O 1990 c. E26, as amended from time to time.

Where property has been acquired by expropriation, the City shall pay compensation, including Market Value for the expropriated property interest(s) and any other statutory entitlements required by the Expropriations Act, in an amount negotiated between the City and the expropriated party and approved by Council, delegated authority or in an amount ordered by the Local Planning Appeal Tribunal (LPAT) following an arbitration pursuant to the Expropriations Act.

Where necessary, client departments shall allow for a minimum of 18 months lead time following finalization of detailed design in their project planning, in anticipation that real property acquisition by expropriation may be required.

Section 30 Agreements

Where project requirements must be met in a timely manner or where negotiation is unsuccessful or not possible, the voluntary acquisition of lands through the use of a Section 30 Agreement pursuant to the Expropriations Act may be considered.

Charitable donations

The City may acquire real property through gifts or donations, subject to Council approval, or that of its delegated authority. Before acceptance or rejection of a gift of real property; an analysis to determine the conditions of the gift, existing restrictions of encumbrances, locating a suitable client department for stewardship, assumption of liabilities or any tax implications, shall be carried out. A charitable donation receipt may be issued in the amount of the appraised market value of the donated real property. An independent appraisal shall determine the market value of any donated real property. A satisfactory Phase I Environmental Site Assessment (ESA) will be required and if warranted a Phase II ESA. Any costs associated with the above will be borne by the donor or the client department.

Development approval process

The Planning, Infrastructure and Economic Development Department deals with land requirements such as parkland, road widening through conditions of final approval for subdivisions, site plans or other development approvals under delegated authority. Where delegated authority has been removed by the Ward Councillor, such matters are submitted to either the Planning Committee or the Agriculture and Rural Affairs Committee and City Council for approval.

Land exchange

When an acquisition is contemplated in support of a City initiative and it is deemed that an exchange of City-owned surplus real property is in the best interests of the City, negotiation and compensation shall be based on the market value of the respective real properties, pursuant to the Disposal of Real Property Policy.

Public–private partnerships (P3)

As per the Public-Private Partnerships Policy and Procedures, the City may acquire or dispose of an interest in real property as part of a P3 to provide infrastructure, community facilities and related services that would benefit the municipality, the private sector and City residents.

Other agencies

The City of Ottawa may acquire real property as the result of a transfer of jurisdiction from one level of government to another, such as transfer of highways, boat launches or other uses.

Appraisal

All real property acquisitions shall be supported with a market value estimate or appraisal. Such a value estimate or appraisal will be completed by an independent real estate professional or by a qualified City staff appraiser.

Where the estimated market value is $750,000 or greater, a second appraisal will be required. At least one appraisal must be undertaken by an independent real estate professional. Appraisal reports are to be based on the estimated “Highest and Best Use” of the property and will be prepared by a qualified real estate professional or by a qualified City staff appraiser, in accordance with current standards of practice within the real estate appraisal industry.

Acquisition at market value

Real property shall be acquired on the basis of market value, unless other considerations are included in the transaction and approved by City Council or its Delegated Authority.

Where there is a variance between the appraised value and the acquisition price that variance shall be explained in an approval report.

Administrative settlements can be used where the value of the acquisition does not exceed $500.

Environmental due diligence

The City of Ottawa shall complete environmental pre-screening on all real property to be acquired to identify potential contamination issues associated with real property. The pre-screening will include a search of the Environmental Remediation Unit’s records, a Historical Land Use Inventory (HLUI) search, a review of the City’s Drawing Information Centre on GeoOttawa for any relevant historical environmental reports, and a review of available aerial photographs to evaluate development history and property use in the area.

The acquisition of the fee simple interest of an entire parcel of land, Property Identification Number (PIN), shall require a Phase I Environmental Site Assessment (ESA) unless sufficient, reliable and recent environmental information is available from the pre-screening to reasonably alleviate potential environmental liability associated with the property acquisition. The decision to waive a Phase I ESA will be authorized in writing by the Program Manager, Environmental Remediation, along with a summary of the information that was considered to support the decision.

Should the acquisition be of a lesser interest, the Program Manager, Environmental Remediation, may require a Phase 1 ESA be completed.

All such ESAs shall be completed in accordance with the Canadian Standards Association (CSA) or to the standard of Ontario Regulation 153/04, as amended, depending on the purpose of the acquisition.

First nations consultation

When acquiring or encumbering federal or provincial lands within the Algonquin Ontario Land Claim area, it is recognized that the federal and provincial governments have a duty to consult with the First Nations. Further, the federal and provincial governments cannot delegate to the purchaser the obligation to consult. As the beneficiary of a (pending) land transfer and the party at risk (if consultation is absent or inadequate), the City will monitor the consultation process.

Heritage properties

The City of Ottawa Official Plan provides the policy direction with respect to the acquisition of properties of heritage interest, through Sections 2.5.5.15 and 4.6.1.5.

Consideration will also be given to the City’s Arts and Heritage Plan, which states, “Give priority to the adaptive re-use of City-owned Heritage Buildings, to meet the City’s accommodation needs before constructing or leasing new buildings.”

When acquiring real property that may have a heritage designation or historical value, a comprehensive analysis of that property shall be conducted involving CREO and appropriate City departments. The analysis will include:

  • Identification of the heritage designation or historical value of the real property;
  • Confirmation of the City of Ottawa program(s) to be implemented at this heritage property;
  • Identification of the heritage value of the real property;
  • Identification of the desired long-term use or protection of the real property;
  • Assessment of the impact of the operational costs of the real property on the City; and
  • Development of an asset management plan, which forecasts the capital renewal and re-investment requirements, to preserve the heritage property.

Prior to the acquisition of a heritage property, CREO requires confirmation that the client department and/or City Council have provided the funding and approval for the acquisition.

Ottawa green spaces and the greenspace network

The City of Ottawa may acquire real property to ensure the sustainability of its green space values, as outlined in Section 5.2.1 of the Official Plan. Direction is provided through specific designations that currently mandate acquisition in Natural Environment Areas, Urban Natural Features and Major Open Space.

Responsibilities

City council

City Council approval is required for projects necessitating the acquisition of real property, including any limited interest therein except where the total cost of the acquisition does not exceed the threshold of delegated authority.

Delegated authority

The General Manager, Planning, Infrastructure and Economic Development, Director of Corporate Real Estate Office, Manager of Realty Services, Manager of Realty Initiatives and Development, and/or the Program Managers of CREO, by way of a Delegated Authority Approval Report and in accordance with the provisions of the Delegation of Authority By-law 2019-280, as may be amended from time to time, have the authority to approve the acquisition of real property in accordance with the provisions of that By-law.

Client department

The client department is responsible for reviewing, in collaboration with CREO through its Realty Services and Realty Initiatives and Development branches, the existing real property inventory and other acquisition initiatives, to determine if real property needs can be met through current inventory or initiatives, prior to the initiation of an acquisition. The client department is directly involved in the asset rationalization effort and confirms that the acquisition requirement satisfies its City-mandated program. The client department is responsible for carrying the Capital Budget in support of the real property acquisition and for notifying the Ward Councillor of any proposed acquisitions at the early initiation of the project process. CREO will be responsible for notifying the Ward Councillor of any pending Council-approved or Delegated Authority Reports moving forward for approval of any acquisition.

Legal services

Legal Services acts as legal counsel to departments and advises the City on real property transactions. The City Solicitor has authority to undertake all legal proceedings required to complete an acquisition transaction, including expropriation proceedings.

Monitoring/contraventions

The Corporate Real Estate Office will monitor the application of this Policy to ensure that all policy requirements are met.

References

  • Disposal of Real Property Policy
  • Public-Private Partnerships Policy
  • Public-Private Partnerships Procedures
  • CREO Leasing Policy

Legislative and administrative authorities

City of Ottawa Arts and Heritage Plan, 2003
City of Ottawa Arts, Heritage and Culture Plan, Renewed Action Plan (2013-2018)
City of Ottawa Delegation of Authority By-law 2007, Revision 2013
City of Ottawa Delegation of Authority By-law 2018-397
City of Ottawa Capital Budget
City of Ottawa 20/20 Official Plan, 2003
City of Ottawa Green space Master Plan, 2006
City of Ottawa Official Plan, as amended from time to time
City of Ottawa Real Property Disposal Policy 2007, Revision 2014
City of Ottawa Act, 1999Expropriations Act, 1990
Environmental Assessment Act, 1990
Heritage Act, 1990
Housing Development Act, 1990
Municipal Act, 2001
Municipal Tax Sales Act, 1990
Local Planning Appeal Tribunal Act, 2017
Planning Act, 1990
Municipal Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c. M. 56

Definitions

Administrative Settlement – In situations where minor property rights are required, an amount paid to the property owner in excess of the appraised value.

Appraisal – the act or process of developing an opinion of value (CUSPAP 2018).

Asset Rationalization – a process to support decision-making related to the acquisition, remediation or disposal of real property, in a cost effective manner, while assuring that essential program and service delivery objectives are not compromised.

Capital Projects – have funding or budgets in place and are included in the City’s Capital Budget.

City Mandated Programs – support City of Ottawa initiatives, as reflected in the Ottawa Official Plan or Capital Program.

Client Department – a City department that is a client of CREO and requires an interest in real property for an approved program or project.

Council Approval Report – a report to Council recommending approval of an acquisition by the City of Ottawa.

Delegated Authority – authority to approve pursuant to the Delegation of Authority By-law 2018-397, as amended.

Delegated Authority Approval Report – a report to the General Manager, Planning, Infrastructure and Economic Development, Director of CREO, Manager of Realty Services, Manager of Realty Initiatives and Development, and/or the Program Managers of the CREO office, recommending the approval of an acquisition of real property in accordance with the provisions of the Delegation of Authority By-law 2018-397, as amended from time to time.

Departmental Needs Assessment – a client department’s report documenting the need for and purpose of acquiring real property.

Expropriation – acquiring real property without the consent of the owner, by an expropriating authority in the exercise of its statutory powers.

Fee Simple – An absolute ownership unencumbered by any other interest or estate subject only to the limitations imposed by governmental powers of taxation, expropriation, police power and escheat.

Market Value – the amount that land and improvements might be expected to realize, if sold in the open market by a willing seller to a willing buyer.

Property Identification Number (PIN) - Every Ontario property has been assigned a unique 9-digit electronic identification number for unique numerical indexing of legal description-based property identification.

Public–Private Partnerships (P3) – legal agreements between government and private sector entities, for the purpose of providing public infrastructure, community facilities and related municipal services.

Real Estate Professional – an individual or firm qualified to provide, in accordance with the City’s current standing offer(s), appraisal and/or real estate consulting services.

Section 30 Agreement – an agreement between the City and the owner of a property, or a legal right or interest in property, which is made pursuant to the statutory authority of section 30 of the Expropriations Act, R.S.O. 1990 c. E.26, as amended from time to time, wherein the said owner consents to the acquisition of the subject property in exchange for a payment or other consideration to the said owner, and wherein said consideration is acknowledged to be without prejudice to an application by the said owner to the Local Planning Appeal Tribunal for determination of the compensation (in whole or in part) to which the owner would be entitled by the Expropriations Act if the land had been expropriated, subject to any conditions agreed upon between the parties in the said agreement.

Inquiries
For more information on this Policy, contact:
Manager, Realty Services
Corporate Real Estate Office
Tel: 613-580-2424, ext. 21549

Disposal of Real Property Policy

Approved By: City Council
Category: General Administration
Approval Date: November 14, 2001
Effective Date: November 14, 2001
Revision Approved By: City Council
Revision Date: February 26, 2018

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

The purpose of this Policy is 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 Corporate Real Estate Office (CREO) shall undertake the Disposal of Real Property in accordance with this Policy and the Disposal of Real Property Procedures, 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.

Land transferred to the City through the Surplus Federal Real Property for Homelessness Initiative (SFRPHI) is exempt from this Policy.

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, CREO.

1.2 Subject to Section 1.3, real property shall be disposed of at current 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 or as stipulated by the Affordable Housing Land and Funding Policy.

1.5 This Policy shall not apply to the Disposal of Real Property that 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. The Disposal of 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. 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 Viable or Non-Viable 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 Viable Real Property Disposal shall be provided to the public to solicit offers as detailed in the Disposal of Real Property Procedures. Sole sourcing is not permitted for Viable Real Property.

2.4 Notice of the proposed Non-Viable Real Property Disposal shall be provided to the Abutting Landowners as detailed in the Disposal of Real Property Procedures.

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, CREO provided that:

  • The Ward Councillor concurs with such declaration. 
  • 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 Real Property shall be obtained. Two (2) Appraisals of the Real Property shall be obtained if the value of the Real Property exceeds one million dollars ($1,000,000). 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 metres 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.
  • Posting on the City’s website at this link (https://ottawa.ca/en/business/doing-business-city/city-properties-sale-and-lease)

Responsibilities

City Council approval is required for the Disposal of Real Property where the total revenue exceeds the maximum amount pursuant to the Delegation of Authority By-law, 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, CREO.

Ward Councillor concurrence is required for the Director, CREO to declare Non-Viable Real Property surplus.

Director, CREO, 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 the Realty Services Branch or Manager of the Realty Initiatives and Development Branch shall ensure that an Appraisal is obtained and public notice is given, in accordance with this Policy.

Legal Services 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

CREO shall monitor the application of this Policy to ensure that all policy requirements are met.

References

Affordable Housing Land and Funding Policy

Disposal of Real Property Procedures

Housing First Policy

Legislative and Administrative Authorities

City of Ottawa Delegation of Authority By-law

City of Ottawa Official Plan

Expropriations Act

Municipal Act

Ontario Heritage Act

Planning Act

Definitions

Abutting Landowner – in the case of the disposal of a closed road or highway, an abutting owner refers to an owner of property that is immediately to the side of 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 because 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 Federal Real Property for Homelessness Initiative (SFRPHI) – a funding stream of the Homelessness Partnering Strategy (HPS), which is a community-based program aimed at preventing and reducing homelessness by providing direct support and funding to designated communities across Canada. It makes surplus federal Real Properties available to eligible recipients for projects to help prevent and reduce homelessness.

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 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
Corporate Real Estate Office
Corporate Services Department
110 Laurier Avenue West
Ottawa, Ontario
Tel: 613-580-2424, ext. 21217

Revision History

Revision History - Disposal of Real Property Policy
Date Approval Descriptions of Changes
September 18, 2001 Tabled Corporate Services and Economic Development Committee tabled report ACS2001-CRS-RPR-0048 recommending adoption of by-law
January 23, 2002 By-Law Adopted By-law 2002-38 establishes procedures, including the giving of notice to the public, governing the sale of real property owned by the City of Ottawa
March 28, 2012 Policy & Procedure Approved By-law 2002-38 repealed, replaced by Disposal of Real Property Policy and Procedures
February 26, 2018 Revised Policy and Procedure Policy revised to remove subsection 5.2 to 5.5 as per Municipal Act update, enhance definition of Market Value as per Delegation of Authority By-law update

Disposal of Real Property Procedures

Approved By: City Council
Category: General Administration
Approval Date: November 14, 2001
Effective Date: November 14, 2001
Revision Approved By: City Council
Revision Date: February 26, 2018

Application

These Procedures apply where Real Property is disposed of by the City of Ottawa.

The City’s Corporate Real Estate Office (CREO) 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

The Realty Initiative and Development Branch of CREO conducts regular reviews of the City’s Real Property inventory in order to ensure that 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 Land 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, CREO undertakes a circulation to City departments, the ward Councillor, 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 the 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 Affordable Housing Land and Funding 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.  
  • That waterfront recreational access is protected in accordance with “A 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. CREO 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 CREO shall convene an ad-hoc committee made up of representatives from each client department, chaired by CREO, to determine the best use for the property.

4. External Circulation – Viable Real Property Only

If no requirement to retain the Real Property is expressed by a City department, an external circulation is completed to allow twenty (20) working days for written expressions of interest to acquire the property. The parties to be circulated to include, but are not limited to, the federal and provincial governments, school boards and conservation authorities.

5. Expropriations Act - Former Owner’s Rights

For properties that were expropriated, Disposal shall be in accordance with the provisions of Section 42 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 one million dollars ($1,000,000) 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

CREO staff complete 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, CREO:

  • Direct sales for non-viable properties, land exchanges or Disposals to government/quasi-government agencies
  • Marketing by CREO
  • Listing Agreement with licensed real estate brokers
  • Request for Offers
  • Public Auction

9. Notice of Proposed Disposal

9.1 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.

9.2 Notice of the disposal of any Non-Viable Real Property shall be provided to any Abutting Landowner.

Monitoring/Contraventions

CREO is responsible for monitoring the application of these Procedures and ensures that the requirements of the Disposal of Real Property Policy are met.

References

Affordable Housing Land and Funding Policy

Disposal of Real Property Policy

Housing First Policy

Legislative and Administrative Authorities

A Strategy to Recognize and Protect the Public Waterfront Recreational Access Function of Selected Road Allowances on the Ottawa and Rideau Rivers

City of Ottawa Delegation of Authority By-law – 2014-435

City of Ottawa Official Plan

Expropriations Act

Municipal Act

Ontario Heritage Act

Planning Act

Policy Statements on the Disposal of Road Allowances

Definitions

Abutting Landowner – in the case of the disposal of a closed road or highway, an abutting owner refers to an owner of property that is immediately to the side of 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 because it is of insufficient size and shape to permit development unless development in conjunction with abutting land.

Surplus Federal Real Property for Homelessness Initiative (SFRPHI) – a funding stream of the Homelessness Partnering Strategy (HPS), which is a community-based program aimed at preventing and reducing homelessness by providing direct support and funding to designated communities across Canada. It makes surplus federal Real Properties available to eligible recipients for projects to help prevent and reduce homelessness.

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.

Viable Real Property – Real property for which a building permit can be obtained.

Keyword Search

Appraisal
Circulation
Disposal
Environmental site assessment
Market Value
Notice Surplus

Inquiries

For more information on these Procedures, contact:

Director
Corporate Real Estate Office
Corporate Services Department
110 Laurier Avenue West
Ottawa, Ontario
Tel: 613-580-2424 ext. 21217

Revision History

Revision History - Disposal of Real Property Procedures
Date Approval Descriptions of Changes
September 18, 2001 Tabled Corporate Services and Economic Development Committee tabled report ACS2001-CRS-RPR-0048 recommending adoption of by-law
January 23, 2002 By-Law Adopted By-law 2002-38 establishes procedures, including the giving of notice to the public, governing the sale of real property owned by the City of Ottawa
March 28, 2012 Policies and Procedures approved By-law 2002-38 repealed, replaced by Disposal of Real Property Policy and Procedures
February 26, 2018 Revised Procedures revised to update org chart references, expand notice of proposed disposal for non-viable real property