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HomeMy WebLinkAboutProperty Management Policies with Amendments to November 9, 2021 (2) PROPERTY MANAGEMENT POLICIES Adopted by Council on September 19th, 2000 Amendments: February 20'', 2001 October 28h, 2003 August 25h, 2004 September 24, 2013 March 15, 2016 October 15, 2018 November 9, 2021 Property Management Policies Page - 1 Introduction The Cape Breton Regional Municipality intends to take a more proactive approach to property management. This overall goal would: • inventory municipally owned land in cooperation with other departments to assess the usefulness of property which may be declared surplus and deemed marketable • identify land, in cooperation with other departments, which should be a priority for acquisition for capital works, watershed protection or other municipal priorities. • prioritize a list of surplus properties now owned by CBRM to be disposed of using some or all of the following methods: -direct sale on the open market -sale by public tender -sale by listing agents -sale by proposal call -sale by land exchange -direct sale to abutting owners -unsolicited proposals -sale under Section 51 of the MGA for non-profit organizations -community-based surplus property Prior to being declared a surplus property for sale and approved by Council, all lots will be evaluated by the appropriate CBRM departments' to ensure that the properties are in fact surplus and nonessential to CBRM. Surplus lots for sale are then categorized under a particular sales disposal method(s). The Chief Administrative Officer, or their designate will then be authorized to approve the sale of a surplus property in accordance with a procedure for each disposal method. In most instances, surplus properties will be listed by advertisement in the local newspaper, and'For Sale' signs placed on the individual properties. Statement Of Policy 1. In taking a more proactive approach to a CBRM Land Management Program, it is the policy of Council to: • incorporate an on going inventory of municipally owned land in cooperation with other departments to assess the usefulness of property holdings which may be declared surplus and deemed a marketable commodity • identify land acquisition in cooperation with other departments for acquisition for capital works, watershed protection or other municipal priorities • prioritize a list of surplus properties now owned by CBRM to be disposed of using various property disposal methods. Property Management Policies Page -2 2. It is a policy of Council to sell surplus property in a fair and impartial manner, which takes into account the highest financial return to CBRM balanced with economic and social development objectives of CBRM. 3. It is a policy of Council that the Chief Administrative Officer, or their designate, be authorized to approve the sale of a surplus property in accordance with recognized procedures for a list of property disposal methods, when all of the following conditions are met: • the property has been declared surplus, as approved by Council • the property is not sold for less then market value (*as determined by the Municipal Government Act regarding CBRM property); and • the value of the property is less than $100,000. 4. In order to have a diverse strategy for the disposal of surplus properties owned by CBRM, it is a policy of Council to use one or all of the following property disposal methods: 4.1 Direct Sale On The Open Market Surplus properties with high market potential shall be disposed of by direct sale. Direct sale on the open market shall involve the listing of these properties at a predetermined price, and advertised in the local newspaper by CBRM. Offers to purchase at the specified price shall be received in writing, and accepted on a first come first serve basis. Pricing shall be set at the assessed value of property, as specified by the most current Provincial Assessment Department records. However, the prospective buyer will have the option of presenting a current appraisal, as opposed to the assessed value. 4.2 Sale By Public Tender This method of divesting property is a select way of attracting interest in surplus properties that may not otherwise have high demand or value but marketable none the less. To avoid speculation, all building lots shall carry a time limit for construction to be completed, not in excess of 18 months, along with an option for the Cape Breton Regional Municipality to repurchase at the original purchase price, should the property be offered for resale. Properties of this status shall be listed by advertisement in the local newspaper. 4.3 Sale By Listing Agent Building lots that do not achieve a satisfactory sale by a public tender process, or surplus properties which have buildings located on them shall be submitted for sale by a Real Estate Agency. Any or all Real Estate Agents are invited to work on CBRM's behalf for the selling of surplus properties. (Feb.201h,2001,Amendment) Property Management Policies Page -3 4.4 Sale By Proposal Call Properties identified as having special development potential shall be the subject of an approval process before a property is sold. As a general rule, the sale of surplus properties listed under this disposal method would be of a commercial or industrial nature. A prospective purchaser shall be required to provide a proposal that has a potentially viable economic impact on the municipality in terms of structure(s) erected and/or the number of people employed. An independent appraiser should determine the value of the property, but property assessment values may also be used if deemed to be within an acceptable price range. The final selling price of the property is negotiable and may be sold for less than market value (*as determined by the Municipal Government Act regarding CBRM property). Approval of any proposal shall be based on staff recommendations and brought back to the Council for acceptance. 4.5 Sale By Land Exchange Wherever possible, direct land exchange of surplus properties shall be employed as an alternative method for the acquisition of necessary lands to accomplish the needs of capital works projects, watershed protection, street widening, etc. 4.6 Direct Sale To Abutting Owner(s) This method of disposal shall be used in situations where surplus property has no apparent value to anyone but the abutting property owner, or owners. Generally, this particular disposal method will be used to dispose of properties which do not meet minimum development standards. There may be times when more then one abutting property owner will have an interest in acquiring the adjoining surplus property for consolidation. In these situations, the property shall be sold to the highest bidder, unless a settlement is reached by all parties involved. Given limited demand, Council shall consider the sale of properties in these cases at less than actual market value (*as determined by the Municipal Government Act regarding CBRM property). 4.7 Unsolicited Proposals There are times when the Municipality will receive requests to purchase properties which have yet to be declared surplus for public sale. In these situations, once the proposed property is reviewed and deemed surplus, it can be sold at the assessed value listed by the most current Provincial Assessment Department records. The prospective buyer will have the option of presenting a current appraisal if the assessed value is brought into question. The costs of a current appraisal, survey, legal fees, or any other necessary processing fees to purchase any property shall be the responsibility of the purchaser. A public tender process shall be initiated if the purchaser offers to buy the property for less than the assessed or appraised market value (*as determined by the Municipal Government Act regarding CBRM property). Property Management Policies Page -4 4.8 Sale To Non-profit Organizations Section 51 of the Municipal Government Act enables the municipality to sell or lease property at a price less than market value to a non-profit organization if Council considers the organization to carry on an activity that is beneficial to the municipality. The procedures for this process to occur includes a public hearing respecting the sale of property if more then ten thousand dollars less than market value, and a resolution of council passed by at least two-thirds majority of the council present and voting. 4.9 Community-Based Surplus Property(August 251,2004,Amendment) Various times the Cape Breton Regional Municipality will acquire title to land and/or buildings that have traditionally been seen as a community based entity. The most frequent category is discontinued schools relinquished by the Cape Breton-Victoria Regional School Board. Less common types of community- based properties that can be acquired by the Municipality would be, for example, a community club/hall, or historical worthy sites. Any property acquired by CBRM is subject to an internal staff review to determine if the land and/or building is considered surplus to the core requirements of the Municipality. If they are not deemed essential, the properties are declared surplus, and can be sold at market value to the general public. Where a community interests is a factor; as in the case described in the first paragraph above, and the possibility exists that a property may be sold at less than market value to a non-profit or charitable community group, a separate sales approach is required. The Community-Based Property Procedure will request Expressions of Interest to determine the level of interest in the purchase and redevelopment of community-based properties by both non-profit or charitable groups and the private sector. An internal staff review will evaluate all submissions to purchase a community-based property and make a recommendation to Council. Although the sale of the surplus property on the open market at full market value must always be considered a desirable option, the purpose of this procedure is to allow staff and Council to evaluate all disposal options together and not independently of one another in order to seek the best overall value for the Municipality and the community. Not for profit organizations that offer expressions of interest will be asked to submit an application and business plan which staff will review and make a recommendation to council . The purpose of the application and business plan is to determine the viability and level of support required by both the particular community and/or the Municipality. A not for profit group must have current registration status as a non-profit or charitable organization to be considered under the terms of the Community-Based Property Procedure, in Policy 4.9.1. If, in the final analysis the decision is made to sell a community-based property to private interests, and there is more than one competing interest, sealed bids would Property Management Policies Page - 5 then be requested of those participants interested in purchasing the property at market value. The Municipality would engage the services of a qualified Appraiser to establish a fair market value for the community-based property. The individual with the highest bid shall become the successful purchaser. 4.9.1 Community-Based Property Procedure The sale of community-based property shall adhere to the following procedures: a) After formal notification that a community-based building and/or land has been closed or abandoned, the Property Management Services Division staff conducts an internal staff review to determine if the building and/or land is considered surplus to the core requirements of the Municipality. b) Property Management Services Division staff brings a recommendation to the Council to have the property declared essential or surplus to the needs of CBRM. C) If declared a community-based surplus property, an advertisement is placed in the local newspaper inviting `Expressions of Interest' from both not for profit and the private sector. d) Letters of intent are received up until an established closing date. e) Expression of interest packages are sent to the community groups who submit letters of intent. The package will include an `information form' which must be filled out by the community group. The information on this form will outline the organization's structure, and include details on an operating budget for the property, for example,property taxes, insurance, power, heat, repairs to building,proposed grants, etc. Proposals must be received within 60 days from the letters of intent closing date. f) Review of competing proposals (including sale on the open market) is conducted by an inter-departmental staff review. The review committee would include representatives, as need be, from recreation, finance, property management, economic development, and the district councilor from the area in which the community-based property is located. g) If required, a public hearing, information meeting, or a presentation before Council may be called. h) Property Management Services Division staff brings back a final recommendation to the Council. i) An Agreement of Purchase and Sale is implemented. Property Management Policies Page - 6 4.9.2 Factors that shall be taken into account when determining a successful purchaser; whether at full market value or at less than market value, are as follows: • Cost considerations associated in retaining or selling the property; • Potential adverse affects on the immediately abutting neighborhood associated with a new use on the property; • Potential positive impact on the particular local neighborhood or community in providing better quality programs or services as a result of a new use on the property. General Policy Requirements 5.1 Requirement of Purchaser Any successful tender or approved purchaser will be required to provide the Cape Breton Regional Municipality with the following: a) certification of Title signed by a lawyer in good standing with the Nova Scotia Barristers Society; b) all necessary survey or subdivision plans; c) all necessary processing charges, i.e., G.S.T., Deed Transfer Tax, Registry of Deeds and Administration Fees; d) signed schedule of any applicable building restrictions; e) where requested to purchase, an appraisal prepared by a licensed appraiser selected by the Cape Breton Regional Municipality if deemed necessary; and f) any advertising cost that may result from the tendering procedure over and above the original surplus property listing(s)by CBRM. 5.2 Deposit On Tender Non-refundable to the successful bidder. Refundable to the unsuccessful bidder. 5.3 Exceptions To Policy Lands such as subdivision owned by the Cape Breton Regional Municipality Industrial Park Lands or Business Park Lands, which have established selling prices or pricing strategy which has been previously approved by Council. Property Management Policies Page - 7 5.4 No Response To Tender Where no offers are received at the time of the Tender closing, the Cape Breton Regional Municipality will receive sealed offers for thirty days. Where more than one offer has been received, the higher offer will prevail provided that it is not below a fair market value (*as determined by the Municipal Government Act regarding CBRM property). 5.5 Time Limits For Construction(October 15t",2018,Amendment) (a) The Grantee (for self, heirs, administrators, executors, and assigns) covenants and agrees to submit a completed application for a Building and/or Development Permit to develop the said lands within one year (365 days) of the date of closing and to complete all aspects of development subject to this application prior to the expiration of the Permit, unless previous written authorization to delay is received from the Chief Administrative Officer or his/her designate. If the application is not submitted and/or the development is not completed within these periods, the Grantor will have the option to repurchase the said lands at the original selling price without interest. (b) This restriction shall not apply where the said lands are to be consolidated with an existing, developed lot,provided that previous written authorization to this effect is received from the Chief Administrative Officer or his/her designate. 5.6 Letter of Request(October 28th,2003,Amendment) a) An offer to purchase CBRM land shall be received in writing, and accepted on a first come first served basis. b) The term `first come first served' shall mean the first letter of request received from an individual, in a situation where more then one person becomes interested in purchasing the same property at market value. All letters of request shall be dated and time stamped as received. C) Subsequent letters of request to purchase the same property at market value shall be processed in the order of the date and time received, where the first individual served does not act upon the purchase within the time limited. NOTE: (*as determined by the Municipal Government Act regarding CBRM property) where shown,indicates that changes to the MGA would be required before we could sell surplus property for less than market value.