GC-001 Acquisition and Disposition of Municipal Lands_2025
Name of Policy Policy Category:
Acquisition and Disposition of Municipal Lands General Counsel
Policy No.: GC-001 M&C Report No.: 2025-042
Effective Date: 2025-02-10 Next Review Date:
Area(s) this policy applies to: Office Responsible for review of this Policy:
Generel Counsel Office
Related Instruments: Policy Sponsors: General Counsel
Document Pages: 12
Revision History:
Common Clerk's Annotation for Official Record
Date of Passage of Current Framework: __Febraury 10, 2025______
I certify that this Policy (Statement) was adopted by Common Council as
indicated above.
______ _March 17, 2025___
Common Clerk Date
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TABLE OF CONTENTS
1. POLICY STATEMENT ............................................................................................................... 3
2. SCOPE ..................................................................................................................................... 3
3. FRAMEWORK .......................................................................................................................... 3
4. LEGISLATION AND STANDARDS ............................................................................................... 6
5. ROLES AND RESPONSIBILITIES ................................................................................................. 6
6. MONITOR AND REVIEW .......................................................................................................... 7
7. IMPLEMENTATION .................................................................................................................. 7
8. GLOSSARY / DEFINITIONS ....................................................................................................... 7
9. INQUIRIES ............................................................................................................................... 8
10. APPENDICES ......................................................................................................................... 8
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1. POLICY STATEMENT
The City of Saint John is committed to the strategic acquisition and disposition of municipal lands to
support municipal operations, and the goals of Prosperous and Vibrant as outlined the City’s 10-year
Strategic Plan, which include the objectives of growing the property tax base by 3% annually and
implementing the City’s actions in the Saint John Affordable Housing Action Plan. This policy aims to
ensure that land transactions contribute to the development of Affordable Housing, support operational
needs, and promote sustainable growth. This policy will be guided by the following principles:
1. Acquisition: The City will prioritize acquiring lands that have the potential for Affordable
Housing development (particularly in areas with high demand and accessible amenities),
lands required for City operations, and lands that will facilitate future growth and
development opportunities.
2. Disposition: Surplus municipal lands suitable for residential development will be disposed of
in a way that maximizes their use for Affordable Housing and economic development,
ensuring transparency and fairness in the process.
3. Partnerships: The City will collaborate with non-profit organizations, private developers, and
other stakeholders to leverage resources and expertise in developing Affordable Housing. In
addition, the City will leverage municipal land to attract large scale developers to encourage
the development of new housing opportunities and tax base growth.
4. Transparency: The City will use open and transparent methods for disposing of its land assets.
5. Monitoring and Evaluation: The City will regularly review and assess the outcomes of land
transactions to ensure they meet the goals, objectives, and actions in the City’s 10-year
strategic plan.
2. SCOPE
This policy will be applicable to all the City’s current land assets and will guide the future acquisition and
disposition of land by the City of Saint John, excluding any lands within the City’s industrial parks which
are owned and managed by the City-owned Saint John Industrial Parks (2024) Ltd.
3. FRAMEWORK
(A) CLASSIFICATION
The City will categorize its land acquisition and dispositions into one the following four categories
which will be identified in the Enhanced GIS Tool:
I. Economic Development Land
Land that has the potential to spur economic development by:
(i) maximizing the use or value of underused or undervalued lands;
(ii) achieving tax-base growth through the attraction of targeted
industries and employment opportunities, and neighbourhood
regeneration strategies;
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(iii) advancing specific development opportunities; and
(iv) generating overall tax base growth for the City.
II. Operational Land
Land that is critical for the City’s present and future operations, including land
that is necessary:
(i) To ensure that City infrastructure can accommodate future
development;
(ii) for City operations, including recreation and community services;
and
(iii) To protect lands in their natural state that are deemed important
for social, ecological, or archeological reasons.
III. Affordable Housing Land
Lands that have the potential for residential development and which are in a
location where:
(i) There is clear evidence of a community need for Affordable
Housing and already-available or easily accessible public
infrastructure;
(ii) There exists a higher market value cost for housing or there is a
scarcity of housing types or residential uses, that limits property
ownership or tenancy in the area where the land is located; or
(iii) The future growth in the area area is anticipated to create
demands for housing, and housing options through proposed
development appear to be limited in variety and financial
accessibility.
IV. Remnant Land
Land which do not fall within one of the above three categories and due to their
nature, size, or dimensions have limited or no reasonable use for the City but
which may have utility for abutting property owners. This may include former
Operational Lands that are no longer required for operational purposes. These
properties may be disposed of at a price that is less than Fair Market Value.
(B) DISPOSITION METHODS
The City will use the following methods to dispose of lands:
I. Request for Expressions of Interest (“REOI”). The process for an REOI is outlined
at Appendix A and is intended to solicit a variety of proposals for the land in
question.
II. Direct Sales
(i) If a property is classified as Economic Development Land or
Affordable Housing Land, direct sales can be undertaken if it
results in a net sale price to be obtained by the City of 10% above
the Fair Market Value of the land, subject to the meeting the
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other conditions outlined in (C) below. For Remnant Lands, the
net sale price can be less than Fair Market Value.
(ii) This approach can include direct marketing by staff or the listing
of property with a licensed real estate agent. Engaging a licensed
real estate requires authorization from Committee of the Whole
and must include pre-negotiated fees and a formal listing
agreement.
(C) DISPOSITION BY CLASSIFICATION
I. Economic Development Land
(a) Subject to the annual approval by Committee of the Whole of the Surplus Lands
Inventory, the presumptive disposition method for the sale of Economic Development
Land shall be through REOI but the sale of such lands may be undertaken by the Direct
Sale method, only if the REOI is unsuccessful or with pre-approval of Committee of the
Whole. The expectation is that the sale of the lands will yield the highest and best use of
the land.
(b) The presumption for the sale of Economic Development Land shall be that the
City shall obtain Fair Market Value for the lands. On the recommendation of Real Estate
Services and the Chief Administrative Officer, Council may sell Economic Development
Lands at below fair market value if there are elements within a specific proposal that will
have a positive impact on the City's economic growth (ie job creation) and a reduced price
on the land may be an incentive for development.
(c) The sale of Economic Development Land shall generally align with the intent and
policies underlying the City’s Municipal Plan.
(d) Any Agreement of Purchase and Sale for Economic Development Land must
include mutually agreed upon milestones for development along with penalties or
remedies for the City in the event the purchaser does not meet the milestones, including
the option to repurchase the property if development does not occur within a reasonable
period of time.
II. Operational Land
Operational Lands shall not be disposed of unless they are no longer required for
operational purposes as identified by the Chief Administrative Officer. Once they are no
longer required for operational purposes, they shall be categorized as either Economic
Development, Affordable Housing, or Remnant Lands.
III. Affordable Housing Land
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(a) Subject to the annual approval by Committee of the Whole of the Surplus Lands
Inventory, the presumptive disposition method for the sale of Affordable Housing Land
shall be through REOI but the sale of such lands may be achieved by Direct Sale, if an REOI
is unsuccessful or with pre-approval of Committee of the Whole.
(b) The presumption for the sale of Affordable Housing Lands shall be that City shall
obtain Fair Market Value but consideration will be given to a sale price that is below Fair
Market Value if the purchaser is a not-for-profit entity. The sale of Affordable Housing
Land for less than Fair Market Value is subject to Council approval, on the
recommendation of Real Estate Service and the Chief Administrative Officer.
(c) Any Agreement of Purchase and Sale for Affordable Housing Land must include
mutually agreed upon milestones for development along with penelties or remedies for
the City in the event the purchaser does not meet the milestones, including the option to
repurchase the property if development does not occur within a reasonable period of
time.
IV Remnant Land
(a) The sale of Remnant Land shall be through Direct Sale with a priority given to
abutting property-owners with a plan to develop the property. Real Estate Service may
negotiate a sale price for Remnant Land that is less than Fair Market which is subject to
approval by Council.
(D) ACQUISITIONS
The City will prioritize acquiring lands on a case by case basis that have the potential for
Affordable Housing development (particularly in areas with high demand and accessible
amenities), lands required for City operations, and lands that will facilitate future growth and
development opportunities. Recommended acquisitions will be presented to the Committee
of the Whole and if approved the Real Estate staff will work directly with the land owner or
land owner’s representative to negotiate the terms of the purchase.
The City will work with other levels of government to prioritize the purchase of any surplus
properties of those other levels of government which have the potential to enhance the City’s
land portfolio.
4. LEGISLATION AND STANDARDS
City of Saint John 10-Year Strategic Plan
Municipal Plan By-law, C.P. 106-32
Affordable Housing Action Plan
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5. ROLES AND RESPONSIBILITIES
Real Estate Service
(i) Manage the City’s land assets in a manner consistent with that of a reasonable, prudent
landowner and in accordance with this policy.
(ii) Create a Surplus Land Inventory on an annual basis to determine which, if any, land assets
will be prioritized during each calendar year and present the Surplus Land Inventory to
Committee of the Whole in Q1 annually with the proposed timeline and method of
disposition being recommended for each land asset being recommended for disposition.
(iii) Identify properties on the Surplus Land Inventory that could be proactively re-zoned in
advance to improve their marketability.
(iv) Provide regular updates to the Chief Administrative Officer and Council on the number of
active properties that are being marketed during the current calendar year.
(v) Circulate the Surplus Land Inventory to other agencies such as Envision Saint John to
ensure a healthy pipeline of opportunities for developers looking to invest in Saint John.
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(vi) Complete valuations (3 party appraisals) prior to bringing properties to market.
(vii) Determine the method of disposal for each property in accordance with this policy.
(viii) Present the results of REOI’s to Committee of the Whole and provide further
recommendations.
(ix) Work with successful purchasers and guide them through the development processes.
Legal
(i) Draft and manage any contractual documents, such as Option Agreements, Easement
Agreements, Agreements of Purchase and Sale, etc.
(ii) Manage and complete any necessary land transactions.
Supply Chain Management
(i) Assist Real Estate Service through facilitation of the REOI process
Other (Growth, Public Works, GIS, Finance, Engineering, etc)
(i) Provide support to Real Estate Service as needed.
6. MONITOR AND REVIEW
This policy shall be reviewed every five years or as needed to ensure it remains relevant to the City’s needs
and legal requirements. Any amendments to this policy must be approved by Council.
7. IMPLEMENTATION
This policy shall apply as of the date of approval of Council, excepting properties which are:
(a) already approved by Council as surplus; amd
(b) under agreement of purchase and sale through delegated approval as of the date of Council
approval of this policy.
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8. DEFINITIONS
In this Policy,
(a) “Affordable Housing” means housing that meets the needs of a variety of households in the low to
moderate income range;
(b) “Fair Market Value” means:
i. If land has an assessed value for property tax purposes of less than $25,000.00,
the assessed value for property tax purposes shall be presumed to be indicative
of Fair Market Value.
ii. If land has an assessed value for property tax purposes of $25,000.00 or more,
Fair Market Value shall be substantiated by a formal appraisal by a Certified Real
Estate Appraiser.
(c) “Enhanced GIS Tool” means the classification system for city-owned properties within the City’s
GIS system;
(d) “Evaluation Matrix” means an approved scoring tool that involves using a table, or matrix, to
compare different proposals;
(e) “Evaluation Committee” means a committee with a minimum of 5 members representing various
areas of discipline throughout the City of Saint John who will independently evaluate the submitted
proposals of any REOIs.
(f) “Surplus Land Inventory” is the annual list provided to Committee of the Whole to approve the
disposition of City lands annually. The list shall be approved by the Chief Administrative Officer and
aligned with the corporate work plan prior to presentation to Committee of the Whole.
9. INQUIRIES
Real Estate Manager
General Counsel Office
Telephone: (506) 658-2860
10. APPENDICES
1. Request for Expression of Interest (REOI) Process
2. Flow Chart for Disposition Method
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Appendix 1
Request for Expression of Interest (REOI) Process
A. Issuance
An REOI will be issued through Procurement and posted on the City’s website for a
minimum of thirty (30) days.
Real Estate Service, in consultation with Envision Satin John and other contacts, will
make efforts to bring the REOI to the attention of any known developers or
organizations (such as the Saint John Construction Association) who may have interest
in participating in the REOI.
B. Evaluation Matrix
An evaluation matrix shall be prepared and released with the REOI.
A generic matrix for residential development is attached to this policy (A) but the
matrix may be adjusted on a case-by-case basis depending on the nature of the lands
in question, with the approval of the Chief Administrative Officer prior to being
included in the REOI.
C. Submissions
All submissions are due on the date and time shown on the REOI. Late submissions will
not be accepted unless the delay is due to an issue or event beyond the submitter's
control.
A five-person committee of City staff will evaluate each proposal independently of
other committee members and their scores will be tabulated by a member of the
Procurement team.
The evaluation committee may determine if they wish to conduct interviews or
additional meetings with any proponent(s). Following any such interview or meeting,
the evaluation committee members may modify scoring on the evaluation matrix.
The highest scoring proposal will be brought forward to the Committee of the Whole
for approval to proceed with negotiation for the disposition of the land.
D. Reporting to Committee of the Whole
A Report to the Committee of the Whole will be presented by Real Estate Service to
recommend the highest scoring proponent based on the evaluation matrix.
The Report will provide high level summary of each proposal and their respective
scores.
The Report will provide a recommendation of the proposal that, in the evaluation
committee's opinion, is the best use of the subject property.
If approved by Committee of the Whole, Real Estate Services will proceed to
negotiations with the proponent and return to Committee of the Whole once
negotiations are complete.
Following negotiations, a final report will be presented to the Committee of the Whole
where the term sheet (B) will be presented along with a draft Agreement of Purchase
and Sale.
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A. Sample REOI Evaluation Matrix
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B. Property Information / Term Sheet
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Annual Surplus Land Inventorysubject to Council approvalDirect SalesRemnant Lands profit -for-FMV if notreduction in sale price below Presumed FMV, Possible approval) Direct Sales (with
Council Proposalscompared across REOI profit, -for-FMV if notreduction in sale price below Presumed FMV, Possible REOIAffordable Housing Landsdisposition)Operational Lands (no Council
Appoval10% over FMV, less with Presumed Sale Price must be approval)Direct Sales (with Council across REOI proposals Council approval, compared Presumed FMV, less with REOIEconomic
Development Lands
Appendix B
Flow Chart for Disposition Method
Prepared
annually by
Real Estate
Services to
identify
priorities
and
classification
of lands
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