May 11, 1998

 To:Corporate Services Committee

 From:Commissioner of Corporate Services

 Subject:Acquisition and Disposal of Real Property

  Purpose:

 In this report, the Commissioner of Corporate Services makes recommendations on processes to be used by the new City of Toronto for the acquisition and disposal of real property, and the City Solicitor submits the necessary bill to bring the foregoing into compliance with required law.

  Funding Sources, Financial Implications and Impact Statement:

 Not applicable.

  Recommendations:

 It is recommended that:

 (1)the processes for the acquisition and disposal of real property, as set out this report, be endorsed and supercede and replace any authorities, policies and procedures of the seven former municipalities that relate to these matters;

 (2)the Commissioner of Corporate Services report on policies for approval by City Council on the allocation of property assets to meet objectives of the City, such as promotion of affordable housing and cultural initiatives;

 (3)authorization be granted for the delegation of real estate/property matters in accordance with the particulars set out in Appendix A-1 of this report;

 (4)the procedures governing the sale of real property as set out in the draft Bill attached to this report as Appendix B-1 be adopted;

 (5)the administrative procedures governing the sale of real property attached as Appendix B-2 to this report be received for information;

 (6)for the marketing of:

 (a)commercial and special purpose properties, authorization be granted for a prequalification process to establish a roster of real estate brokers, such roster to be used on a rotational basis;

 (b)residential real estate, the Commissioner of Corporate Services or her designate be authorized to select real estate brokers active in residential listings, in accordance with the criteria listed in this report;

 and the Commissioner of Corporate Services or her designate be authorized to execute the relevant listing agreements with the real estate broker;

 (7) the Commissioner of Corporate Services be authorized to negotiate a commission fee, at her sole discretion, for any professional services from Real Estate Brokers;

 (8)the Commissioner of Corporate Services report on:

(a)the appropriate roles and responsibilities of City Council and staff with respect to real estate matters for the ABC=s; and

(b)how applications for encroachment can be most effectively dealt with;

(c)the effectiveness of the processes recommended in this report in one year=s time;

 (9)upon enactment, the disposal by-law proposed in this report shall supersede and replace the by-laws of the seven previous municipalities governing the sale of real property;

 (10)authority be granted for the introduction of any Bills necessary to effect the foregoing; and

 (11)the appropriate City Officials be authorized and directed to take the necessary action to give effect to the foregoing.

Council Reference/Background/History:

 This report responds to a number of requests, outlined below, that relate to real estate processes to provide a comprehensive framework for the consideration by City Council:

 (A)at its meeting of March 3, 1998 the Budget Committee requested reports on the disposition of properties (both leased and owned), the establishment of a Adisposal unit@ to expedite the disposal process, and on the work to be done by external consultants;

 (B)City Council, at its meeting of April 16, 1998, in considering Clause No. 2 of Report No. 3 of the Toronto Community Council, entitled AExpropriation of Private Lane - Rear of 58-66 Williamson Road and 252 to 256 Glen Manor Drive (East Toronto)@, requested the Chief Administrative Officer, the Chief Financial Officer and Treasurer and the Commissioner of Corporate Services report to the Corporate Services Committee Aon a mechanism to incorporate uniformity in the handling of real estate transactions, whether it be through expropriation, sale or some other method@; and

 (C)City Council, at its meeting of April 16, 1998, referred back the report, (March 25, 1998) of the Commissioner of Corporate Services, entitled ADelegation of Authority to Approve Various Real Estate Matters@, for further consideration and also decided that the Council Strategy Committee for Persons without Homes be offered the opportunity to provide input on the sale of properties, when such matters are considered by the Committee.

 Comments and/or Discussion and/or Justification:

 The establishment of a procedural framework for the disposal of real property assets for the new City is urgently required to meet corporate objectives and to have one common set of procedures. Up to now, the processes and bylaws of the of the former municipalities have been in effect.

1. Meeting Corporate Objectives:

 (1)Disposal of property to increase revenues

 The Budget Committee has directed that the sale of City property be treated as a priority. A separate report from the Commissioner of Corporate Services, (May 11) entitled AExpediting the Disposal of Property and the Reduction of Leased Space@ is also before your Committee.

 In 1997 the combined property sales in the former municipalities totalled $30 million. Staff have proposed a target of potential revenues of $60 million for 1998, to be met through:

• sales closed this year to date ($9.86 million);
• sales in progress ($11.66 million );
• sale of the over 160 properties have already been declared surplus, including houses acquired for the Spadina Expressway and Scarborough Transportation Corridor, 45 vacant properties and other industrial and commercial properties; and
• sales from additional properties, 120 of which already identified in preliminary analysis by staff as possible to be recommended to be declared surplus; and
• additional properties that will be identified as a result of the space rationalization studies now underway for office space and yards.

In addition, the costs of leased office space (now $19 million a year) is being reduced by relocating functions to space owned by the City. Some leased space will continue to be required as some community based functions must be located where no City owned property is available. To date a reduction of at least $2 million in lease payments is anticipated for 1999.

 (2)Ensuring a corporate approach

 In accordance with the Procedural Bylaw, the Corporate Services Committee is the Committee which considers all significant real estate matters. As proposed below, some minor and administrative matters are proposed to be delegated to the Chief Administrative Officer and the Commissioner of Corporate Services. In addition, a senior staff committee, the Property Management Committee, will review all significant requests for allocation of property, acquisition of new property and potential properties for disposal, prior to submission of reports to the Corporate Services Committee. The Committee will also include representation from the ABC=s to ensure all City owned real estate is considered.

 (3)Achieving social objectives

Council may decide to achieve certain policy objectives through the allocation of property, such as the provision of land for affordable housing. For example, the former Metro process ranked social housing needs equally with those of internal operating departments in considering the allocation of property, and in addition, before offering property on the open market, gave consideration to requests from cultural, race relations or community service organizations that supported a municipal program.

The new City Council has established one such priority by directing that the Council Strategy Committee for People without Homes be offered an opportunity for input into the process of property disposition at such time as a report is submitted to the Corporate Services Committee.

 The Commissioner of Corporate Services should be requested to report to the Corporate Services Committee on all policy issues affecting the allocation of city property. In the interim, these policy priorities will be addressed by including a step in the report circulation process to determine departmental and other interests before a report is submitted to the Corporate Services Committee recommending that a property be declared surplus. Appendix C to this report, setting out the process for disposition of property, includes this step.

  (4) Reducing the workload of Council by delegating authority to approve minor real estate matters to staff

 The report (March 25, 1998) from the Commissioner of Corporate Services, recommended the delegation of approval authority over various property matters. In response to the concerns expressed by Council, the report before Committee today recommends the establishment of a simplified, uniform City-wide process. Since the date of my March 25, 1998 Report, revisions to the suggested delegations of authority have been made and it is therefore recommended that this report supercede and replace my March 25, 1998 report.

Various types of real estate/property matters, often routine in nature and/or very minor in dollar amounts, can lengthen Committee and Council agendas which, in turn, results in delays in implementing the necessary transactions and/or documentation.

 Staff have accordingly turned their mind to assessing which of the wide array of property matters (transactions and documentation) should be delegated by Council to staff, at the levels of the Chief Administrative Officer and Commissioner of Corporate Services depending on the nature of the transaction and the dollar value in question. The chart attached as Appendix A to this Report, reflects the proposed delegations of authority to approve various property transactions and/or documentation.

 The documentation required to implement the transactions(s) in question will be prepared in accordance with terms and conditions satisfactory to the Commissioner of Corporate Services (including, where appropriate, relevant indemnities, both environmental and otherwise, and standard insurance provisions satisfactory to the Commissioner of Finance), and in a form satisfactory to the Solicitor. Where the matter involves the needs of, or property under the jurisdiction of, an operating department, terms and conditions satisfactory to the Commissioner in question, will also be included. Dollar figures on the chart represent only Abase@ amounts and are not intended to include relevant taxes, operating costs, leasehold improvements, etc.

 The approval of various types of encroachment agreements (on City property, including roads, parks, etc., and by the City onto private property) will be the subject matter of a future report once pre-existing policies and practices have been rationalized, and the jurisdiction of the Community Councils in these matters is clarified.

 If, in any particular circumstance, a transaction otherwise having been delegated to staff for approval is of such special interest that same should receive the consideration of Committee and Council, a determination may be made to return such item to the Committee/Council approval process for consideration.

 The proposed delegation of authority to approve various real estate matters as reflected in the appended Chart will relieve Committee/Council Agendas of minor items, expedite approval of the proposed transactions and/or documentation, while, at the same time, ensuring that Council retains decision-making control over significant property matters.

1. Disposal Processes:

 (1)A new Disposal Bylaw

 Prior to 1994, Section 193 of the Municipal Act provided that the time, manner and price at which property was sold by the municipality or the purchaser thereof was not open to question or review by a court if the parties acted in good faith. However, in 1994, as part of a provincial initiative promoting accountability in local government the provisions, the provisions of section 193 of the Municipal Act relating to the sale of property, were enacted to provide that each municipality follow certain mandatory procedures and enact a by-law governing the sale of real property. Municipalities are now required to follow significant procedural steps when disposing of real property, in the interest of ensuring wider public awareness of surplus municipal property and its proposed disposal. Moreover, the manner of carrying out the sale of a property, which includes leasing property out for twenty one or more years, must be Aconsistent@ with the municipality=s by-law respecting procedure for sale of land and with section 193 before it is beyond the courts= review powers.

 The mandatory procedural requirements are summarized as follows:

 (a)a by-law must be enacted (and adhered to) establishing procedures governing the sale of real property;

 (b)before selling real property, the Council must

(i)declare the property surplus by by-law or resolution passed at a meeting open to the public; and

(ii)obtain at least one appraisal of the fair market value of the land (unless the property or transferee is in an exempt class as defined by Regulation); and

 (c)a public register must be established and maintained listing all real property owned or leased by the municipality (unless exempted).

 The only mandatory component of the by-law is that it must contain procedures for the giving of notice to the public of the proposed sale. Unlike the requirements for an appraisal or a listing in the public register which in certain cases are made inapplicable by Regulation, there is no power granted to the Minister to make regulations dispensing with the giving of public notice of a proposed sale. Accordingly, all intended sales of surplus property must be the subject of a notice to the public. The only exception to the requirement of public notice of a proposed sale is a sale pursuant to subsection 210.1(3) of the Municipal Act in connection with the supply of a municipal capital facility. The notice is to be given before the municipality binds itself with respect to the sale of real property. The notice should be given only after Council has, at a public meeting, declared the real property to be surplus.

 The by-laws enacted by the Aold@ municipalities comprising the new City of Toronto in compliance with the statutory requirements, had some variations among them. Legal and Real Estate staff have resolved upon the proposed form of by-law attached to this Report as Appendix B-I as the recommended amalgam of the preferred portions of the by-laws of the former municipalities. Upon enactment, this by-law would then supersede and replace all the by-laws governing the sale of real property of the former seven municipalities.

 In conjunction with the legislative requirements, administrative procedures will be implemented to ensure consistent, uniform compliance with the provisions in the statute and the by-law by various City officials, the intended procedures being set out in Appendix B-II to this report. The existing Regulation exempting certain types of sales from the requirement for an appraisal, and certain classes

 of real property from being listed in the public register, is reproduced in Appendix B-III to this report.

 (2) Processes for determining a property to be surplus

 The steps for the disposal of property are included in Appendix C. They include: a review by staff of any issues and considerations; a circulation of notice to departments and ABC=s and, as well as to organizations and agencies identified by City Council to meet its objectives as it determines from time to time; a resolution of conflicting interests by a senior staff Aproperty management committee@, and finally a report by the Commissioner of Corporate Services to the Corporate Services Committee on the recommended disposition.

 The process also includes ensuring that each Ward Councillor receives early information about properties that are being recommended to be declared surplus and to be sold.

 (3)Expediting the disposal processes for properties declared surplus

 This matter is more fully discussed in the report, AExpediting the Disposal of Property and the Reduction of Leased Space@ (March 11). A staff Adisposal unit@ has begun operating, consisting of a director from a former municipality and four valuator/negotiators has been established within the amalgamated Real Estate Services group. Legal staff have been assigned to assist in completing the disposals.

 The group will initially concentrate its efforts on the disposal of properties already declared surplus. These include the Spadina and Scarborough Expressway houses. A separate report (May 11, 1998) from the Commissioner of Corporate Services entitled A Surplus Properties within the ASpadina Corridor@ and AScarborough Transportation Corridor@, also before you for consideration today, recommends a disposal process for these properties. In addition the unit will have responsibility for the disposal of the Cityhome A Property Houses@, of the former City of Toronto. The disposal program is described in the report (May 11, 1998) from the Commissioner of Corporate Services entitled ASale of Property Houses@ also before your Committee for consideration today.

 The use of real estate brokers to assist staff was common in the former municipalities. Some had rosters, established through a prequalification process for various special purpose or complex properties were involved. To ensure fairness of access to City business, it is recommended that a roster of real estate brokers be established in order to ensure adequate services for all types of properties across the City. Brokers will be utilized on a rotational basis within the prequalified groups.

 However, when dealing  with single-family residential properties, knowledge of the local market and access to the Toronto Real Estate Board=s Multiple Listing Service are particularly important. The primary advantages of listing with Real Estate Brokers are savings in staff time and resources and the ability to show properties during evening and weekend hours generally preferred by prospective home buyers. Also, the use of Real Estate Brokers allows staff to manage the sale of a large portfolio of properties simultaneously. Listing directly with T.R.E.B. permitted greater control of our administrative and sales processes and alleviated difficulties concerning selection of Brokers.

 At present, in order to ensure each Real Estate Broker a fair and equal opportunity to list a City-owned property, the criteria approved by the former Metro is similar to that applied more informally by other municipalities, and should be used by the new City.

 (a)the Real Estate Broker=s firm must be licensed and a member in good standing with the T.R.E.B. and as such would have access to the services of the M.L.S.;

 (b)the Real Estate Broker=s firm must have an office within reasonable proximity to the property or properties being offered in order to service the listing in a proper, timely and efficient manner;

 (c)the Real Estate Broker=s firm must be readily accessible to the general public and other Members of the Board for the purpose of conducting open houses, showing the property to prospective purchasers, and to receive offers without any undue travel restrictions;

 (d)the Real Estate Broker=s firm must, at the sole discretion of the Commissioner of Corporate Services, provide as requested, open houses, T.V. advertisements, ad copy, weekly status reports, and any other marketing activity or criteria involved in the sale of the property; and

 (e)the Real Estate Broker=s firm must have expertise in engaging in the services we require for a specific property type.

 Qualified brokers, as determined by the Commissioner of Corporate Services, are randomly selected on a lottery basis by staff. Once a Broker has listed a property and there remains other qualified Brokers in the area, the original Broker=s firm is removed from the lottery pool for a period of one year.

 (4)Expediting the sale of additional properties

 Real Estate staff have been developing a list of potentially surplus properties to recommend to the Corporate Services Committee following the process set out in Appendix D. Over 160 properties have been identified that could be sold in the near future, many of them vacant. Others to be reported on include:

 (a)properties that are to be sold as part of the City=s major corporate initiatives, such as the development of the Downsview lands and the disposal of some properties in the Scarborough Transportation Corridor, but where current planning studies must be completed before the properties are declared surplus;

 (b)properties that will be released though functional amalgamation and the space rationalization process; and

(c)properties should be reviewed to ensure they are still needed for the purpose for which they were acquired.

 (5)Reserve Fund for Revenues from the Sale of Property

 The Chief Financial Officer is reporting separately on the establishment of reserve funds for revenues from the sale of assets, and will be consulting with the Commissioner of Corporate Services in such reporting.

 3.Process for Acquisition of Property:

 The statutory powers of municipalities to acquire property is limited to such property as is required for municipal purposes. Appendix D of this report sets out the process for acquisition. To assist with reducing the City=s expenditures at this time, any need for new property must be reviewed to ensure existing assets are being used effectively. Prior to any reporting to the Corporate Services Committee,the staff Property Management Committee will coordinate requests and resolve conflicting needs.

 4.Process for Leasing Property

 The processes for leasing property for City use and leasing out City owned property for other uses are set out in Appendix E to this report. In general, the City=s objectives at this time are to maximize returns on space it leases out and to reduce the leased space needed by the City departments by finding space in City owned properties. Therefore, all requests for leased space should be processed centrally by the Facilities & Real Estate Division to ensure that any appropriate available space is used prior to leasing space from others. The Property Management Committee will be reviewing progress to ensure that existing leased space is being collapsed where ever possible, and as the administrative amalgamation and downsizing continues and the corporate office space needs are more fully understood, further opportunities for the rationalization of leased space are undertaken.

 The process for leasing space at nominal rates to non-profits groups is subject of a separate report, (May 11, 1998) entitled, @Use of City Property by Non-Profit Corporations at Below Market Charges@, also before your Committee.

1. Matters for Further Consideration:

 There are additional areas where reports on policies and procedures will be brought forward. For example, the roles and responsibilities of the ABC=s and their staff in relation to property matters should be reviewed and be subject of a further report.

 The Commissioner of Corporate Services has engaged an external search consultant to assist in the recruitment of the Executive Director for Facilities & Real Estate both externally and internally. This process is anticipated to take several months and in the meantime, an interim lead for the Facilities & Real Estate will work with staff teams to deliver the programs.

Conclusion:

 The procedures set out in this report will ensure that appropriate properties are selected to be purchased, leased, declared surplus and sold in accordance with applicable law, while ensuring that corporate objectives are being met. The recommended bylaws and procedures reflect the best practices of the previous seven former municipalities. A review should be undertaken in one year=s time to ensure that the recommended processes are meeting the new City=s operational needs and financial goals while attaining the desired level of efficiency.

 Contact Name:

 Cathie Macdonald, Interim Lead Facilities & Real Estate: 392-0449, Fax 392-0029 (bc98040.wpd)

     Commissioner of Corporate ServicesCity Solicitor

  APPENDIX A

APPROVING AUTHORITY FOR REAL PROPERTY MATTERS

APPENDIX B-I

DISPOSAL BYLAW

Authority:Corporate Services Committee

Report No. ( ), , 1998

Intended for first presentation to Council:May , 1998

Adopted by Council:

 CITY OF TORONTO

 BILL No.

 BY-LAW No.

 To establish procedures governing the sale of real property.

 The Council of the City of Toronto HEREBY ENACTS as follows:

 1.In this By-law

 (a)"Act" means the Municipal Act, R.S.O. 1990, c. M.45 and includes Regulations made thereunder;

 (b)"appraisal" means written opinion of value providing information sufficient to satisfy the Commissioner that the opinion is reasonable;

 (c)ACity@ means the City of Toronto;

 (d)"Commissioner" means the Commissioner of Corporate Services and includes his/her designate;

 (e)"Council" means the Council of the City of Toronto;

 (f)"land" means land as defined in the Act;

 (g)"Public Land Register" means the public register of all real property owned or leased by the City, maintained in accordance with section 5 as required by, and subject to all exceptions in, the Act;

 (h)"purchaser" means any person who enters into an agreement with the City to acquire a site by way of a sale;

(i)"real property" means land which is owned by the City and includes land which is owned by its Agencies, Boards or Commissions, the jurisdiction for the sale of which has been transferred to the City;

 (j)"sale" means any agreement to sell real property including a disposal by way of a lease of 21 years or longer;

 (k)"site" means an identified or identifiable parcel of real property; and

 (l)"surplus" means real property which is no longer required by the City for municipal purposes.

 2.The Commissioner, on the advice of the Property Management Committee, shall be responsible for reporting on sites which are surplus and the manner or process by which the sale of the site will be carried out.

 3.(1)Where Council has

 (a)declared a site to be surplus in accordance with the Act, and

 (b)approved the manner or process by which the sale of the site will be carried out,

 the Commissioner shall give notice to the public of the proposed sale in accordance with this section.

 (2)Notice to the public of a proposed sale of a site shall be given by at least one of the following methods, as the Commissioner may deem reasonable in the circumstances:

 (a)by posting a clearly visible sign on the site for a period of not less than 7 days;

 (b)by distribution by regular mail or hand delivery of a communication in writing to owners and tenants as shown on the latest revised assessment roll, of properties within 100 metres of the site; or

 (c)by publication in a newspaper having circulation in the area of the site.

 (3)The requirements of subsection (2) are minimum requirements and the Commissioner is authorized to give notice to the public of a proposed sale in any extended manner if, in the opinion of the Commissioner, such extended manner is reasonable and necessary in the circumstances.

 (4)In addition to the notice required by subsection (2), notice to the public of a proposed sale shall be posted by the Clerk in the office where the Public Land Register is maintained.

 (5)A notice of proposed sale given under clauses (2)(b) or (c) and subsection (3) of this section 3 shall contain at least the following information:

 (a)a general description of the manner by which the sale will be carried out;

 (b)location of the site by reference to municipal address or legal description or both;

 (c)approximate size of the site by reference to dimensions and area, or both, and a brief description of any buildings or other improvements situate thereon;

 (d)the date the real property was declared surplus;

 (e)the name, title, address and telephone number of the City official(s) having information about the proposed sale; and

 (f)the latest date by which enquiries may be made of any official described in clause (e).

 (6)A notice of a proposed sale given by posted sign under clause (2)(a) shall contain at least the information described in clauses (5)(a) and (e) of this section 3.

 4.(1)The Commissioner shall be responsible for having an appraisal prepared prior to the consideration by Council of authorization of the sale of any site except in those cases where an appraisal is not required by the Act.

 (2)The Commissioner shall provide the City Clerk with sufficient information to permit the Clerk to issue a certificate in accordance with subsection 193(9) of the Act.

 5.(1)The Public Land Register shall be made available to the public through the office of the City Clerk.

 (2)The information necessary to maintain the Public Land Register shall be provided to the City Clerk by the Commissioner.

 (3)The Public Land Register shall contain the following information with respect to each site listed therein:

 (a)the municipal address or a description of the location by reference to public highways within the City;

 (b)approximate size by reference to dimensions or area, or both; and

 (c)whether the site is owned by or leased to the City.

 (4)The Public Land Register may for any site contain any information additional to that described in subsection (3) which the Commissioner considers relevant, including

 (a)a legal description,

 (b)a description of any improvements thereto,

 (c)whether Council has declared the site to be surplus, and

 (d)whether the City, as owner, has granted a long-term lease or other right to occupy the site and, if so, the duration thereof.

 (5)The City Clerk, on the advice of the Commissioner, shall delete all reference to a site in the Public Land Register following the completion of a sale thereof where the City retains no further ownership interest therein.

 6.None of the provisions of this by-law shall apply to lands which are municipal capital facilities in accordance with subsection 210.1(3) of the Act.

 7.This By-law shall be deemed to have come into force on the date of its enactment.

 ENACTED AND PASSED this day of , A.D. 1998.

   Mayor

   City Clerk

APPENDIX B - II

 ADMINISTRATIVE PROCEDURES TO BE FOLLOWED BY CITY STAFF

FOR THE DISPOSAL OF REAL PROPERTY

  1.Following completion of the identification and canvassing process as authorized from time to time by Council, the initial Report to be taken to the Property Management Committee is to contain information and/or recommendations as follows (unless the disposal is of land under ss. 210.1(3) of the Municipal Act or successor):

 (a)a description of the property (including, where possible, a location sketch);

 (b)a confirmation of appropriate "stopping up and closing" if the property formed a "highway" or part thereof;

 (c)a declaration that the property is surplus to the needs of the City;

 (d)any applicable compliance with s. 42 of the Expropriations Act or successor, which may include request for authority to dispose of the lands without giving the owner(s) from whom the land was originally taken the first chance to purchase the lands on the terms of the best offer received;

 (e)any applicable compliance with s. 315 of the Municipal Act or successor relating to the requirement to extend certain rights to adjacent owners when selling former highways or portions thereof;

 (f)the proposed method of disposition, which could delineate both general and specific terms of same including, for example:

 (i)whether or not the property interest to be disposed of constitutes:

 (A)a sale of the fee simple (stratified or otherwise);

 (B)a lease where the term (including any rights of the tenant to options, extensions and/or renewals) is to be 21 years or longer; or

 (C)an easement (including a description of the nature thereof);

 (ii)the more specific parameters of the proposed disposition including, for example:

 (A)any intention to transfer for nominal consideration;

 (B)any applicable "reserve bid" (or suggested "set price" if the property in question is subject to the operation of s. 315 of the Municipal Act or successor);

 (C)the fact of any existing right of any person(s) [whether under the Expropriations Act to "match" offers otherwise received, under the Municipal Act to entitlement of first refusal to accept Council's "set price", or otherwise] to gain priority of entitlement to acquire the property;

 (D)closing dates;

 (E)amount(s) of minimum deposit(s);

 (F)term in years (if the property is a lease or other interest not in perpetuity);

 (G)preconditions to closing;

 (H)collateral obligations, etc.;

 (I)statement of any proposal to negotiate exclusively with one or more particular person(s), or of any requirement to offer the property to any particular person(s) in accordance with s. 315 of the Municipal Act or successor;

 (J)applicability of any general Council policy relating to the disposition of that type of property; and

 (g)requesting authorization for the expenditure of funds necessary to comply with paragraph 2 below.

  2.Notice to the public, as determined by the Commissioner, is to be provided in accordance with the requirements of section 3 of By-law No. -98. (entitled "Procedures Governing The Sale of Real Property").

 3.In response to any enquiries received as a result of the notice referred to in paragraph 2. above, departmental staff is to provide information about the proposed sale of the property as is reasonably available.

 4.Prior to the consideration by Council of the Report referred to in paragraph 5 below, at least one appraisal [as defined in clause 1(b) of By-law No. -98] of the fair market value of the real property will be obtained unless:

 (a)the real property is of a class that is by statute exempt from such requirements; or

 (b)the intended transferee is of a class that is by statute exempt from such requirement.

 [As at the date of writing, only Ontario Regulation 815/94, a copy of which is attached, has been enacted, setting out various such exemptions.]

 5.Following the expiration of the latest date by which enquiries may be made of City officials as set out in the public notice referred to in paragraph 2. above, City staff is to give consideration to all of the offers/proposals received and formulate a recommendation, to be included into a second report which would be prepared, under signature of the appropriate Commissioner for the appropriate Standing Committee and, ultimately, Council, containing:

 (a)confirmation that the public notice as required by By-law No. -98 had been provided;

 (b)general information about the various offers/proposals which had been received;

 (c)either

 (i)in those situations where the method of disposition was a straightforward sale, lease or easement, and where the solicitation for offers was in such detail that a simple acceptance of the offer(s) by the City would be sufficient to constitute a binding agreement, a statement that one or more were acceptable "as presented"; or

 (ii)in those situations which called for proposals or allowed for conditional offers, explanation as to what clarifications/negotiations had been undertaken; and

 (d)the ultimate transaction recommendation, including the rationale therefor (particularly, of course, in those cases of a negotiated transaction).

 6.The Commissioner will forward to the Clerk a communication confirming that:

 (a)the measures required for giving notice to the public required by By-law No. -98 have been carried out; and

(b)the appraisal required by subsection 4(1) of By-law No. -98 was obtained, or

 (i)the property is of a prescribed class that does not require an appraisal;

 (ii)the sale is to a prescribed public body that does not require an appraisal; or

 (iii)the sale is in connection with acquisition of a municipal capital facility under section 210.1 of the Municipal Act,

 to enable the Clerk to issue the Certificate referred to in subsection 193(9) of the Municipal Act, ultimately to be included by the City Solicitor in the Deed/Transfer of the property.

  Dated: , 1998

 A:\bc98040.wpd

 APPENDIX B - III

 ONTARIO REGULATION 815/94 made under the MUNICIPAL ACT

DISPOSAL OF PROPERTY

  1.A municipality or local board may sell the following classes of real property without obtaining an appraisal under subsection 193 (4) of the Act:

 1.Land 0.3 metres or less in width acquired in connection with an approval or decision under the Planning Act.

 2.Highways, roads and road allowances.

 3.Land formerly used for railway branch lines if sold to an owner of land abutting the former railway land.

 4.Land that does not have direct access to a highway if sold to the owner of land abutting that land.

 5.Land repurchased by an owner in accordance with section 42 of the Expropriations Act.

 6.Land to be used for sites for the establishment and carrying on of industries and of industrial operations and incidental uses.

 7.Land sold under sections 112, 112.1, 112.2 and 113 of the Municipal Act.

 8.Easements granted to public utilities or to telephone companies.

 9.Land sold under the Municipal Tax Sales Act.

 2.A municipality or local board may sell real property to the following classes of public bodies without obtaining an appraisal under subsection 193 (4) of the Act:

 1.Any municipality, including a metropolitan, regional or district municipality and the County of Oxford.

 2.A local board as defined in the Municipal Affairs Act.

 3.An authority under the Conservation Authorities Act.

4.The Crown in Right of Ontario or of Canada and their agencies.

 3.A municipality or local board is not required to list the following classes of real property in the public register established under subsection 193 (7) of the Act:

 1.Land 0.3 metres or less in width acquired in connection with an approval or decision under the Planning Act.

 2.All highways, roads and road allowances, whether or not opened, unopened, closed or stopped up.

 3.Land formerly used for railway branch lines.

  4.This Regulation comes into force on the day section 55 of the Planning and Municipal Statute Law Amendment Act, 1994 comes into force

    Dated: , 1998

    APPENDIX C

 PROCESSES FOR DECLARING PROPERTIES SURPLUS

 (1)notice be provided to the Executive Director of Facilities & Real Estate of a potentially surplus property, such as by means of :

(a)corporate asset reviews such as space rationalization;

(b)department reorganization, reduction in staffing or program change; and

(c)a new tax sale property.

 (2)a review to be undertaken by the Facilities & Real Estate Division, consulting with other departments to determine applicable considerations, including the following:

(a)any utilities on the lands;

(b)development potential;

(c)economic development potentials;

(d)environmental issues; and

(e)other potential cost and budget considerations, such as capital budget impacts.

 (3)a circulation to be undertaken to determine interest in potentially surplus properties

(a)circulation by the Facilities & Real Estate Division to other divisions, departments and ABC=s to determine any interest in the property to meet their needs; and

(b)if no interest is indicated, circulation is then made to the Council Strategy Committee for Persons without Homes, and other such interests as Council may determine, from time to time.

 (4)reports are prepared and submitted under the following categories, with recommendations regarding determination, as appropriate:

 (a)allocation to a department expressing the interest:

• report is submitted by the Executive Director to Property Management Committee on submissions of interest, with information as to the expressed interests;

-decision is made by Property Management Committee for allocation, including resolution of conflicting interests; and

• if no resolution by Property Management Committee, the decision is made by the CAO.

 (b)allocation if interest expressed under 3.(b) above (organization supporting a municipal program):

-report is submitted by the Executive Director of Facilities & Real Estate to the Property Management Committee on the proposed use; and

-report is submitted by the Commissioner of Corporate Services to the Corporate Services Committee, on the recommendation of the Property Management Committee, recommending that the property be declared surplus and that the property be allocated to the organization requesting it.

 (c)disposal of a significant property where no public use identified:

• report is submitted by the Executive Director of Facilities & Real Estate to the Property Management Committee on large, high profile properties; and
• report is submitted by the Commissioner of Corporate Services to the Corporate Services Committee, on the recommendations of the Property Management Committee, to recommend that the property be declared surplus and be sold.

 (d)disposal of other property where no public use identified:

-report is submitted by the Commissioner of Corporate Services to the Corporate Services Committee, on the recommendation of the Property Management Committee, to recommend that the property be declared surplus and be sold.

 (e)disposal of non viable sites where no public use identified:

Sreport is submitted by the Commissioner of Corporate Services to the Corporate Services Committee, on the recommendation of the Property Management Committee, recommending that the property be declared surplus and sold to the abutting owner; and

Sif the owner is not interested, property is to be retained in the inventory for future consideration.

 (f)retention for potential longer term need by the City:

-report is submitted by the Executive Director of Facilities & Real Estate to the Property Management Committee regarding the long term and interim use for the property, such as leasing; and

-report is submitted by the Commissioner of Corporate Services to the Corporate Services Committee, on the recommendation of the Property Management Committee, if required, such as for a major corporate initiative.

 (5)staff of the Facilities & Real Estate Division provides the ward councillor with a copy of the signed report that will be on the agenda of the Corporate Services Committee.

APPENDIX D

  PROCESSES FOR ACQUISITION

 (1)notice is to be given to the Executive Director of Facilities & Real Estate that a department or ABC requires property.

 (2)review is undertaken by the Facilities & Real Estate Division of potential properties, including properties already owned, including:

(a)costs;

(b)environmental issues; and

(c) appropriateness for needs identified.

 (3)reports are prepared, with recommendations as appropriate:

 (a) if purchase price is under $250,000 and funding is approved in the budget:

• report is submitted by the Commissioner of Corporate Services to the Property Management Committee on alternatives and recommendation; and
• decision is made by the CAO, on recommendation by the Property Management Committee.

 (b) if costs over $250,000 and funding is approved in the budget:

• report is submitted by the Executive Director of Facilities & Real Estate to the Property Management Committee on alternatives and recommendations; and
• joint report, including recommendation of the Property Management Committee, is submitted by the relevant department or ABC and the Commissioner of Corporate Services to the Corporate Services Committee.

 (c)if funding has not yet been approved:

• report is submitted by the Executive Director of Facilities & Real Estate to the Property Management Committee on alternatives and recommendation; and
• a joint report, including recommendation of the Property Management Committee, is submitted to the Budget Committee for approval of funding.

APPENDIX E

 PROCESSES FOR LEASING PROPERTY

 (1) Process for leasing property by the City:

 (a)notice to be provided to the Executive Director of Facilities & Real Estate by a department of a need for space;

(b)a review is undertaken of potential properties by the Facilities & Real Estate Division with the objective of using City owned space whenever possible;

(c)approval, including reporting is required, dependant on the relevant approval authority set out in Council=s delegation of approvals for real property matters, for the terms and conditions of the lease, including reporting to the Property Management Committee;

(d)lease negotiations are undertaken by the Facilities & Real Estate Division; and

(e)reporting and approval as required, depending on the relevant approval authority under the Delegation Bylaw, for the terms and conditions of the lease.

 (2) Process for leasing City property to others:

 (a)notice to be provided to the Executive Director of Facilities & Real Estate, such as through:

(a)corporate review of portfolio; and

(b)temporary changing needs of department.

(2)a report to be submitted by the Executive Director of Facilities & Real Estate to the Property Management Committee identifying new opportunity to lease property and rational for doing so.