City Sells Surplus Land

2.1 acres of serviced land sold for just $25,000.

This sale is sure to prompt other residents looking to benefit from a great deal from the municipality and expand their property.

The sale of municipal land has been an important item of discussion for the 2022-2026 council. Last year, they declared the Cache Bay Trailer Park as surplus and sold it for $761,000.

In the last year, council has heard other requests from staff wanting to dispose of municipal assets or residents wanting to acquire some. This past week, council approved two more such deals with one being for just over 2 acres in Sturgeon Falls.

These motions were quickly passed among over a dozen new business items at the end of the 2 1/2 hour meeting.

Council officially declared 0.85 ha (2.1 acres)* on Tamarack Street as “surplus”. By-law 2024-29 also authorized the mayor to sell this parcel for just $25,000 to the neighbouring residents who asked to purchase it.

*1 ha (hectare) equals 2.47 acres.

As is often the case, councillor Fern Pellerin was the only one to speak up and question this bizarre transaction. Pellerin pointed out that this lot is not a typical disposition where someone was buying land that was behind their property and of no value to anyone else. The land in question is adding 100 feet of road frontage to someone’s existing lot. In a very desirable neighbourhood with sewer and water services.

The mayor shut down deliberations by stating that this sale had already been “discussed in committee”. I looked at the agendas of the last three months for both the Committee of Adjustments and the Planning Advisory Committee and could not find any mention of this particular item. Yesterday morning, I reached out to Thorne-Rochon to ask what she was referring to. I also inquired with council and municipal staff to ask how the valuation was determined and if there was an error in the description of the land or motions. I have not received a response.

In 2021, council passed a bylaw to set out proper procedures for the sale and disposition of municipal land. Bylaw 2021/18 states that all land dispositions must first be preceded by a professional appraisal and as well as proper notice given on the municipal website and in local newspapers. I cannot find record of any such notice for the latest sale. It is not clear if other residents on this street were given the option to bid on this parcel of land.

Currently in Sturgeon Falls, there are seven vacant building lots for sale on municipal services. They range between 0.25 acres and 0.50 acres and in price between $65,000 and $130,000.

It is difficult to see how an appraisal for a 2.1 acre lot would come in substantially less than the current market. Assuming this sale will more than double this resident’s existing property, there is no question that their property valuation will rise by multiple times more than $25,000.

It is not clear who was responsible for the legal, appraisal (if any), and administrative costs of this transaction. But if the city took on these expenses, then the municipality may not see much revenue for sales such as this.

This sale is sure to prompt other residents looking to benefit from a great deal from the municipality and expand their property.

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