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1. PURPOSE STATEMENT
The purpose of this policy is to outline the process for the acquisition and disposal of
municipal lands, with a particular emphasis on the disposal of municipal surplus land(s)
for the purposes of residential housing.
2. APPLICATION
This Policy does not apply to lands that have existing legal distinction(s) or purposes,
such as land transfers with conditions and/or lands for public purposes, acquired
through the development process, pursuant to Section 76 of the Community Planning
Act.
3. DEFINITIONS
- "Act" means the Local Governance Act, SNB 2017, C.18;
- "Administration" means staff of the Town of Salisbury;
- "Affordable Housing" means the definition of the Canadian Mortgage and
Housing Corporation (CMHC)'s standards, consisting of housing at a rate of less
than 30% of a households income before tax;
- "Chief Administrative Officer" means the head of the municipal administration
and the only employee that reports to Town Council and is appointed pursuant to
Section 81 of the Local Governance Act;
- "Council" means the elected Mayor and Councillors of the Town of Salisbury;
- "Reserve Fund(s)" means reserve accounts established and maintained by
Town Council, pursuant to Sections 101(a) and 101(b) of the Local Governance
Act;
- "Surplus Lands" means land(s) that the Town has determined they no longer
have a need for, OR, is interested in soliciting proposals for alternate uses to
maximize the land(s) or meet strategic objectives (e.g.: housing development),
pursuant to this Policy;
POLICY
Department:
Chief Administrative
Officer (CAO)
MUNICIPAL SURPLUS LAND &
LAND ACQUISITION POLICY
Effective Date: February 13, 2024
Last Reviewed Date: February 1, 2024
4. LAND ACQUISITION
Identification of Land(s) to be Acquired
Land to be acquired may be identified by:
- Council;
- A third party offering to dispose of its land to the Town;
- A municipal plan, report, or strategy identifying strategic lands;
- Public listings of land(s) for sale;
- A department requiring acquisition for the fulfillment of a specific mandate.
Process for Land Acquisition
In the event of land identified that may be considered for acquisition, the Town shall
prepare a recommendation to Council. In the event that the land is not publicly listed,
Administration shall be authorized to determine a fair market value, in consultation with
a land or real estate professional, for the purposes of determining potential pricing.
In preparation of a report from Council, Administration shall highlight and consider the
following and highlight these criteria within the Council Report Form:
- Economic return or value of the land(s)
- Current zoning
- Potential future uses(s)
- Developability of the land (size, location, existing uses/structures, development
constraints, municipal services)
- Proximity to primary transportation/municipal services (sidewalks, sewer, etc.)
- Proximity to services and public amenities (medical, educational, food, education,
parks, etc.)
- Adjacent land uses(s)
- Whether land(s) protect municipal assets or enhance existing ownership (ie: land
adjacent to municipal owned land, etc.)
Authorization for Pre-Approved Land Negotiations
In the event of land(s) that have been identified by Council as priority, Administration is
authorized to negotiate directly with landowners, especially if lands are publicly listed
and may sell quickly, in order to expedite the process.
Administration, through the CAO, in consultation with the Mayor, may be pre-approved
to negotiate with landowners for lands that meet the majority of the above-mentioned
criteria favorably, but have not necessarily been pre-approved as a priority.
In order to negotiate a price, Administration shall be required to have a determination of
fair market value by two professionals. The fair market value shall be calculated by
taking the average of these two prices. Administration shall be authorized to negotiate
an Intent to Purchase at a price of fair market price (with a +10% allowance for an
additional buffer for negotiation purposes, if required).
Acquisition Process
Regardless of the acquisition process pursued, all land transactions involving the Town
are subject to a resolution of Council, during a Regular Council Meeting, as per the
Local Governance Act.
5. DISPOSAL OF MUNICIPAL LAND(S)
In the event that land has been designated as surplus land(s), the following process
shall be undertaken:
Designation of Surplus Lands
Land owned by the Town may be deemed as surplus land, at the discretion of Council.
At no point does designating land as surplus land determine that it shall be transferred,
sold, or disposed of, but rather, that the Town shall commence the public process of
soliciting proposals for the disposal of land.
The designation of land as surplus shall first be directed by Council in a Closed
Session, pursuant to Section 68(1)(d) of the Local Governance Act. This shall be ratified
by way of resolution, including the intended use of the surplus lands (housing,
commercial, lease, etc.).
Direct Sale
Where Council deems land to be disposed of for the purposes of economic
development, and/or to generate revenue for the Town, the Town has the sole
discretion to determine if lands should be sold for the highest price.
In this event, the Town determines if the sale shall be posted by the Town, or, through a
licensed real estate broker of their choice. Either avenue shall be considered public
notice of the intent to dispose and sell land(s) and remain subject to authorization of
Council, by way of resolution, to accept an offer on the land(s).
Public Notice of Solicitation of Proposals - General
To initiate the process of disposing of municipal lands, the Town shall issue a public
solicitation of proposals, on the Town's website and through direct communication with
potential interested parties, at the discretion of the Town, with the following information:
- Bidding process, including deadline for submission of bids, bid requirements, and
anticipated timeline;
- Desired use for the surplus lands (ie: residential use, commercial use,
recreational use, etc.);
- Location & size of parcel(s);
- Information related to land-use and permitted zoning;
- Information, studies, surveys, etc. available or commissioned on the land(s),
where applicable (ie: topographic surveys, water studies, subdivision plans, etc.);
- Requirement(s) of the presentation to Council, should the proponent be short-
listed;
- Mandatory conditions with the surplus lands (ie: timeframes, uses, if it is a lease
versus transfer, etc.) that must be agreed to in submitting a bid;
- Required information to be submitted with the proposal(s), such as: letter of
intent, contract(s) and obligations required by proponents, term(s), references,
etc.;
- Any other information that the Town deems required for the purposes of the RFP
process.
Solicitation of Proposals - By-Invite for Not-for-Profit Developers
In light of the economic, social, and community benefits, in addition to funding
opportunities that can be leveraged, the Town reserves the right to solicit proposals
directly from not-for-profit organizations, primarily for residential development, at the
sole discretion of the Town. In this event, these proponents shall be required to follow
the same process, with the exception that the notice shall not be posted publicly prior to
undergoing the evaluation process.
A by-invite solicitation of proposals from surplus lands shall be initiated by way of
direction from Town Council. A proposal, request, or recommendation may be made by
Administration in a Closed Session, pursuant to Section 68(1)(d) of the Local
Governance Act. Should it be the will of Council, they may direct Administration,
pursuant to Section 68(2)(b) of the Local Governance Act, to solicit proposals from
potential qualified not-for-profit developers for consideration for surplus lands. In
general, land(s) transferred through this method shall be sold for $1.
While this option exists to favor not-for-profit developers in the pursuit of affordable and
suitable housing, it does not exclude not-for-profit developers or organizations from
submitting proposals as part of surplus lands that may be issued for RFP publicly.
Evaluation of Proposals by Administration
Following the RFP process, evaluations shall be evaluated confidentially by the Chief
Administrative Officer or their designate. This evaluation may include other members of
Administration, at the discretion of the CAO, based on the intended use(s) of the surplus
lands.
This evaluation shall be for the sole purpose of determining eligibility of proposals
submitted in alignment with the criteria posted as part of the RFP process. In the event
of multiple proposals, the CAO shall determine a short-list of up to three proponents, in
consultation with the Mayor, to move onto the presentation phase.
Presentation of Proposals - Meeting of Salisbury Town Council
Following the confirmation of eligibility and/or short-listing of proponents, the CAO shall
notify the Clerk of the Municipality of the need to have a Closed Session, pursuant to
Section 68(1)(d) of the Local Governance Act, for a presentation from short-listed
proponents.
All proponents having reached this stage shall have an equal opportunity to propose
their proposal to Town Council. Using a consistent evaluation matrix, Council shall
evaluate all presentations and determine the successful proponent.
Disposal of Land(s)
Following the public process, the Town shall enter into negotiations, pursuant to the
terms advertised by the Town, with the successful proponent. The decision must be
ratified in a Regular Session of Council, pursuant to the Local Governance Act, prior to
executing formal agreements.
6. LAND SALE/USE REVENUES
In the event that the Town collects revenue from the disposal of municipal-owned lands
pursuant to this Policy, the funds shall be deposited to the Town's General Operating
Budget. Use of the funds shall be at the discretion of Council, and in the event that
revenue(s) are not spent in the fiscal year of the transaction, Council shall transfer the
funds to a Reserve Fund at their discretion.
If lands are disposed of for housing or economic development, a minimum of 50% of the
revenue from the lands shall be earmarked for future use(s) related to housing, such as:
additional land purchases for future disposal, developer agreement incentives, etc.