The Disposition of Surplus Property Regulation now enables
school boards in Ontario to provide an expanded number of
organizations an advance opportunity to submit expressions of
interest and place offers on surplus school properties intended to
be sold, leased or otherwise disposed of before they go on the open
market. These organizations now include:
Lead agencies for child and youth mental health, as listed in
Schedule 3 to the Disposition of Surplus Property Regulation, which
agencies may refer the proposal to approved corporations and
approved agencies under the Child and Family Services Act
that operate a children's mental health centre in the service
area in which the property is located;
Local Health Integration Networks ("LHINs"), provided
that the LHINs are located within the geographical area of the
property being disposed of, which LHINs are permitted to refer
proposals issued to them to health service providers in the
LHIN's catchment area; and
The Disposition of Surplus Property Regulation states that
offers to buy, lease or otherwise obtain surplus real property must
be at fair market value.
Health and social service providers considering surplus property
acquisition opportunities are reminded to engage in standard due
diligence on the property for a purchase or lease including, where
building and environmental inspections;
regulation and code compliance;
municipal official plan and zoning by-law to ensure the
intended future use is permitted; and
any other similar standard commercial due diligence
Where the intended use is as a health or community hub,
consideration should also be given to securing advance commitment
from desired third party partners through joint ventures, letters
of intent or other legal means. Interested parties should
also consider, where appropriate, including such commitments as
conditions to expressions of interest/offers to buy or lease.
Miller Thomson is available to support organizations through the
real estate leasing or acquisition process and health/community hub
development, including submissions of expressions of interest,
negotiation of definitive agreements and short-term and long-term
risk management strategies.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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