Local Government Property Disposition Notice

Municipalities and regional districts are required to give public notice prior to the disposal of land or improvements.

Notice of Disposition

The form the disposition notice takes will depend on whether the local government is prepared to proceed to open tender, or whether a purchase agreement on the property has already been negotiated with a potential purchaser.

If the local government intends the dispose of the property through an open tender process, the notice must include a description of the property, the nature and term of the disposition (i.e. sale, lease or other disposition), and the process by which the land and improvements may be acquired (i.e. the tender process). If a purchase agreement is already in place, the notice must identify the property, the purchaser, the purchase price, and the nature and term of the disposition (e.g. sale, lease, or other disposition).

Property Sales Below Market Value

Under the Community Charter and Local Government Act disposing of property below market value is a form of assistance. A local government that wishes to dispose of property below market value must provide a public notice of its intention to grant assistance, as required by either section 24 of the Community Charter or section 272 of the Local Government Act. This notice may be combined with the notice of disposition, and the notice must clearly state that it provides for both disposition and assistance.

Restrictions for Business

In accordance with section 25 of the Community Charter and section 273 of the Local Government Act, local governments may not grant assistance to a business. This includes disposing of property below market value. However, a local government may provide assistance to a business if there is a partnering agreement in place with the business for the provision of a service on behalf of a local government.