O. Reg. 374/23: ACQUISITION AND DISPOSITION OF REAL PROPERTY, Education Act, R.S.O. 1990, c. E.2

Education Act

ONTARIO REGULATION 374/23

ACQUISITION AND DISPOSITION OF REAL PROPERTY

Historical version for the period December 6, 2023 to December 30, 2023.

Note: THIS REGULATION IS NOT YET IN FORCE. It comes into force on December 31, 2023, the day section 19 of Schedule 2 to the Better Schools and Student Outcomes Act, 2023 comes into force.

No amendments.

This is the English version of a bilingual regulation.

CONTENTS

Dispositions of Property

1.

Discretionary disposition

2.

Mandatory disposition

3.

Fair market value

4.

Exceptions to disposition process

5.

Notice of disposition

6.

Offer to acquire

7.

Offer for lease

8.

Termination of lease

9.

Leased property

10.

TDSB funding for property

11.

Transition

Acquisitions of Property

12.

Notice of acquisitions

Schedule 1

Board to board leases

 

Dispositions of Property

Discretionary disposition

1. (1) A board may sell, lease or otherwise dispose of a school site, part of a school site or other property of the board if,

(a)  the board adopts a resolution that the property is not required for the purposes of the board; or

(b)  the disposition is authorized under subsection (2) or (3).

(2) A board may sell, lease or otherwise dispose of a school site, part of a school site or other property of the board to a person or body if,

(a)  the board adopts a resolution that the disposition is a reasonable step in a plan to provide accommodation for pupils;

(b)  the board,

(i)  acquires, by purchase, lease or otherwise, another school site, part of a school site or other property from the person or body, or

(ii)  enters into an agreement with the person or body for the board to use the property that is disposed of for pupil accommodation; and

(c)  the board obtains the Minister’s approval for the disposition.

(3) A board may grant an easement over any of its real property if,

(a)  the board adopts a resolution that it does not require for its purposes the interest that the easement would create;

(b)  the grant of the easement is for consideration that the board considers reasonable; and

(c)  the grant of the easement does not have the effect of rendering any school site or part of a school site no longer suitable for providing pupil accommodation.

(4) In subsection (3),

“easement” means an easement, right-of-way, right or licence in the nature of an easement, profit à prendre or other incorporeal hereditament, but does not include such an easement arising by operation of law.

Mandatory disposition

2. (1) If a board has identified, through the reports and information required under section 193.1 of the Act, that a school site or other property of a board is not currently being used and the site or property is not needed to meet the board’s current pupil accommodation needs or its pupil accommodation needs for the next 10 years, the Minister shall,

(a)  consider whether additional factors need to be considered or consultation needs to be completed before a decision can be made with respect to whether the property must be disposed of; and

(b)  after considering any additional factors and completing any consultation referred to in clause (a), notify the board whether it is required to dispose of the property and if so, that the board shall,

(i)  sell the property, or

(ii)  lease or otherwise dispose of the property, if the Minister approves.

(2) The Minister may exempt a school site or property from the process described in clauses (1) (a) and (b) if the board demonstrates, to the satisfaction of the Minister, that it will need the property for pupil accommodation at a time more than 10 years in the future.

(3) An exemption under subsection (2) may be given with or without conditions.

Fair market value

3. Except as otherwise provided in section 7, a sale, lease or other disposition under section 1 or 2 must be at fair market value.

Exceptions to disposition process

4. (1) A disposition of property authorized under clause 1 (1) (a) or required under subsection 2 (1) shall be done in accordance with the process set out in sections 5 to 7 unless,

(a)  the property is disposed of to a person or body referred to in subsection (2) whose purpose in acquiring the property is to provide one or more of the services described in paragraphs 1 to 5, 7, 9 and 10 of subsection 2 (4) of the Development Charges Act, 1997; or

(b)  the property is leased to a person or body whose purpose in acquiring the property is to occupy and use the property for the purposes of,

(i)  a child care centre within the meaning of the Child Care and Early Years Act, 2014,

(ii)  a child and family program as defined in subsection 3 (2) of Ontario Regulation 137/15 (General) made under the Child Care and Early Years Act, 2014,

(iii)  a third party program, or

(iv)  providing a children’s recreation program described in paragraph 8 of subsection 6 (1) of Ontario Regulation 138/15 (Funding, Cost Sharing and Financial Assistance) made under the Child Care and Early Years Act, 2014.

(2) The persons or bodies referred to in clause (1) (a) are,

(a)  the municipality in which the property is located;

(b)  a local board of the municipality in which the property is located;

(c)  if the property is located in an upper-tier municipality, that upper-tier municipality; and

(d)  if the property is located in an upper-tier municipality, any local board of that upper-tier municipality.

Notice of disposition

5. (1) Within 120 days of receiving notice from a board, through the reports and information required under section 193.1 of the Act, of a disposition under clause 1 (1) (a) of this Regulation, or within 120 days of the Minister giving notice to the board under clause 2 (1) (b) of this Regulation that the board is required to dispose of the property, as the case may be, the Minister shall respond to the board in one of the following ways:

1.  If the board has decided under clause 1 (1) (a) to dispose of the property, the Minister shall,

i.  identify the person or body to whom the property must be offered, if the board intends to offer it to any person or body, or

ii.  inform the board that it may offer the property to any person or body.

2.  If the board is required under subsection 2 (1) to dispose of the property, the Minister shall,

i.  identify the person or body to whom the property must be offered, or

ii.  inform the board that it must dispose of the property but may offer it to any person or body.

(2) For the purposes of subparagraph 1 i or 2 i of subsection (1), when identifying the person or body to whom the property may or must be offered, the Minister shall consider the following classes of persons or bodies, in the following order of priority:

1.  School boards.

2.  The Crown in right of Ontario.

3.  Persons or bodies who require the property in order to achieve such provincial priorities as have been identified for the purpose.

(3) Despite the timeline set out in subsection (1), the Minister may notify a board that additional time is required to respond.

(4) If the Minister identifies a person or body under subparagraph 1 i or 2 i of subsection (1), the Minister shall, at the same time as it responds to the board, give notice to that person or body.

Offer to acquire

6. (1) The board disposing of property under clause 1 (1) (a) or subsection 2 (1) and the person or body to whom an offer is made shall have 90 days from the day the Minister gives the response under section 5 to enter into an agreement for the disposition of the property.

(2) The board and the person or body may agree to extend the time for entering into an agreement for an additional 90 days.

(3) The board shall notify the Minister of any of the following events within 14 days of it occurring:

1.  That an agreement has been reached.

2.  That the board and the person or body have agreed under subsection (2) to extend the time for entering into an agreement for an additional 90 days.

3.  That the board and the person or body did not reach an agreement for the disposition of the property within the specified time.

(4) Upon receiving notice under paragraph 3 of subsection (3), the Minister may inform the board and the person or body that the Minister is extending the time to enter into an agreement for a specified period.

(5) If the time to enter into an agreement is extended under subsection (4), the board shall give notice of the events described in paragraphs 1 and 3 of subsection (3) in accordance with that subsection.

(6) Upon receiving notice under paragraph 3 of subsection (3) but subject to any extension of time under subsection (4), the Minister shall respond to the board in one of the following ways:

1.  For a disposal under clause 1 (1) (a), inform the board that it may offer the property to any person or body.

2.  For a disposal under subsection 2 (1), inform the board that it must dispose of the property but may offer it to any person or body.

3.  Inform the board that the property must be addressed the next time the board provides reports and information to the Minister under section 193.1 of the Act.

(7) At any time during the time periods described in subsections (1), (2) or (4), the person or body may elect to have the fair market value to be used for the purpose of the disposition determined through binding arbitration.

Offer for lease

7. (1) This section applies to an offer under section 6 to acquire, by lease, property on which there is a building or part of a building that is used or was last used for providing pupil accommodation if,

(a)  the board seeking to dispose of the building or part, and the person or body making the offer to acquire the building or part are both district school boards; and

(b)  the purpose of acquiring the building or part is to provide pupil accommodation.

(2) An offer for the lease of property to which this section applies shall be for an amount calculated as follows in respect of each fiscal year in the lease period:

1.  Take the sum of,

i.  the gross floor area of the building or part of a building that is to be leased multiplied by $85.77, and

ii.  either,

A.  if the building or part of the building is used or was last used for providing pupil accommodation only for an elementary school program, the product of,

1.  the gross floor area of the building or part of a building that is to be leased,

2.  the Weighted Average Benchmark Elementary School Renewal Cost per Metre Squared for the board that issued the proposal, as set out in Column 2 of Schedule 1, and

3.  the Geographic Adjustment Factor for the board that issued the proposal, as set out in Column 4 of Schedule 1, or

B.  if the building or part of the building is used or was last used for providing pupil accommodation for a program leading to a secondary school diploma, or for both an elementary school program and a program leading to a secondary school diploma, the product of,

1.  the gross floor area of the building or part of a building that is to be leased,

2.  the Weighted Average Benchmark Secondary School Renewal Cost per Metre Squared for the board that issued the proposal, as set out in Column 3 of Schedule 1, and

3.  the Geographic Adjustment Factor for the board that issued the proposal, as set out in Column 4 of Schedule 1.

2.  Divide the result obtained in paragraph 1 by the number of calendar days in the fiscal year.

3.  Multiply the result obtained in paragraph 2 by the number of calendar days in the fiscal year that are covered by the lease period.

(3) In subsection (2),

“gross floor area” means the gross floor area, expressed in square metres, within the meaning of Ontario Regulation 20/98 (Education Development Charges — General) made under the Act.

Termination of lease

8. (1) An agreement for the lease of real property to which section 7 applies shall include a condition that the lease is terminated on a day specified in the agreement if the person or body making the offer to acquire the property does not use the property to provide accommodation for pupils eligible to be included in the calculation of legislative grants for new pupil places for any period of 12 consecutive months after the commencement of the lease.

(2) The termination of a lease under subsection (1) is not a closing of the school.

Leased property

9. (1) Sections 1 to 8 apply to the board in respect of property it leases to another person or body upon the expiry of the lease and in respect of any subsequent lease of the property.

(2) For greater certainty, subsection (1) applies in respect of property leased before the day this regulation came into force.

TDSB funding for property

10. (1) The Toronto District School Board shall provide funds to the purchaser of the real property described in subsection (3) for the purpose of erecting a building on the property or retrofitting an existing building on the property, where all or part of the building is intended to be used to provide services, including licensed child care, to the public.

(2) The funds provided to the purchaser shall be funds from the proceeds of the sale of the property equal to the lesser of,

(a)  the cost of erecting the new building or retrofitting the existing building, or where only a part of the new or retrofitted building is to be used to provide services to the public, the cost of erecting or retrofitting that part; and

(b)  $7 million.

(3) The real property referred to in subsection (1) is the land described as follows:

1.  PIN 21309-0585 (LT): LT 1-8 PL 1252 TORONTO; BLK A PL 1252 TORONTO; LANE PL 1252 TORONTO (CLOSED BY WG134848); LT 1-3 PL D1373 TORONTO; O’CONNELL AV PL D1373 TORONTO (CLOSED BY WG126118); BLK A PL 1085 TORONTO; LT 18-20 PL 1068 CITY WEST; PT BLK A PL 1089 CITY WEST AS IN WG27509; PT PARK LT 29 CON 1 FTB TWP OF YORK PL 1068 CITY WEST AS IN WG131508; WG150992; S/T WG126445E; CITY OF TORONTO.

2.  PIN 21309-0688 (LT): BLK B PL D1343 TORONTO; CITY OF TORONTO.

Transition

11. If, before the day this regulation came into force, a board issued a proposal to sell, lease or otherwise dispose of property in accordance with section 3 or 4 of Ontario Regulation 444/98 (Disposition of Surplus Real Property and Acquisition of Property) made under the Act, as that regulation read immediately before it was revoked, then any process related to the proposal shall continue in accordance with that regulation, despite its revocation, until three years after the expiry of the 180-day period referred to in subclause 10 (2) (b) (ii) of Ontario Regulation 444/98.

Acquisitions of Property

Notice of acquisitions

12. (1) For the purposes of subsection 195 (1.1) of the Act, the board shall give notice to the Minister of its intent to acquire or apply to expropriate a school site or any other land under subsection 195 (1) of the Act at least 60 days before the acquisition or application.

(2) For the purposes of subsection 195 (1.2) of the Act, the board shall not proceed with a proposed acquisition or application to expropriate if it receives the notice not to proceed referred to in that subsection on or before the following day:

1.  If a board does not require the approval of the Minister to spend or receive funds for the purposes of the acquisition or application to expropriate, the 60th day after the day notice is given under subsection (1).

2.  If a board does require the approval of the Minister to spend or receive funds for the purposes of the acquisition or application to expropriate, the later of the 60th day after the day notice is given under subsection (1) and the day the Minister notifies the board whether or not the Minister gives the approval to spend or receive funds.

(3) Despite subsection (2), if the proposed acquisition is an acquisition of a school site, part of a school site or other property of another board as described in subclause 1 (2) (b) (i), the board shall not proceed with the proposed acquisition if it receives the notice not to proceed on or before the later of,

(a)  the 60th day after the day notice is given under subsection (1); and

(b)  the day the Minister notifies the board whether or not the Minister gives the approval referred to in clause 1 (2) (c).

(4) For the purposes of subsection 195 (1.5) of the Act, if a board plans to acquire a school site for pupil accommodation as described in that subsection, the board shall,

(a)  notify the Minister when negotiations begin in respect of the provision of such accommodation;

(b)  provide information to the Minister as requested; and

(c)  obtain the approval of the Minister before entering into an agreement in respect of the accommodation.

(5) Despite subsections (1) and (2), if a board plans to acquire a school site for pupil accommodation as described in subsection 195 (1.5) of the Act,

(a)  notice under subsection 195 (1.1) of the Act may be given by requesting the Minister’s approval to enter into the agreement referred to in clause (4) (c); and

(b)  the board shall not proceed with the proposed acquisition if it receives the notice not to proceed referred to in subsection 195 (1.2) of the Act on or before the later of,

(i)  the 60th day after the day notice is given under subsection (1), and

(ii)  the day the Minister notifies the board whether or not the Minister gives the approval referred to in clause (4) (c).

13. Omitted (revokes other Regulations).

14. Omitted (provides for coming into force of provisions of this Regulation).

Schedule 1
Board to Board LeaseS

Item

Column 1
Name of board

Column 2
Weighted Average Benchmark Elementary School Renewal Cost per Metre Squared
(in dollars)

Column 3
Weighted Average Benchmark Secondary School Renewal Cost per Metre Squared
(in dollars)

Column 4
Geographic Adjustment Factor

1.

Algoma District School Board

11.30

11.10

1.30

2.

Algonquin and Lakeshore Catholic District School Board

11.39

11.14

1.06

3.

Avon Maitland District School Board

11.51

11.83

1.05

4.

Bluewater District School Board

11.22

10.91

1.05

5.

Brant Haldimand Norfolk Catholic District School Board

10.39

10.62

1.03

6.

Bruce-Grey Catholic District School Board

11.83

11.83

1.05

7.

Catholic District School Board of Eastern Ontario

10.65

9.06

1.05

8.

Conseil des écoles publiques de l’Est de l’Ontario

9.87

9.89

1.04

9.

Conseil scolaire catholique MonAvenir

11.25

8.80

1.02

10.

Conseil scolaire catholique Providence

10.16

10.94

1.04

11.

Conseil scolaire de district catholique de l’Est ontarien

10.87

11.49

1.04

12.

Conseil scolaire de district catholique des Aurores boréales

11.57

7.89

1.52

13.

Conseil scolaire de district catholique des Grandes Rivières

11.83

11.12

1.56

14.

Conseil scolaire de district catholique du Centre-Est de l’Ontario

9.91

10.52

1.03

15.

Conseil scolaire de district catholique du Nouvel-Ontario

11.63

10.67

1.26

16.

Conseil scolaire de district catholique Franco-Nord

10.12

9.69

1.21

17.

Conseil scolaire public du Grand Nord de l’Ontario

10.56

11.16

1.30

18.

Conseil scolaire public du Nord-Est de l’Ontario

9.35

8.49

1.42

19.

Conseil scolaire Viamonde

11.27

10.16

1.02

20.

District School Board of Niagara

11.54

11.83

1.03

21.

District School Board Ontario North East

10.96

11.39

1.54

22.

Dufferin-Peel Catholic District School Board

9.86

9.74

1.00

23.

Durham Catholic District School Board

10.22

10.55

1.00

24.

Durham District School Board

10.09

11.07

1.00

25.

Grand Erie District School Board

11.52

11.83

1.03

26.

Greater Essex County District School Board

11.02

11.71

1.05

27.

Halton Catholic District School Board

9.81

9.54

1.02

28.

Halton District School Board

10.39

11.19

1.02

29.

Hamilton-Wentworth Catholic District School Board

10.51

10.22

1.02

30.

Hamilton-Wentworth District School Board

10.75

11.24

1.02

31.

Hastings and Prince Edward District School Board

11.48

11.83

1.07

32.

Huron Perth Catholic District School Board

11.35

7.89

1.05

33.

Huron-Superior Catholic District School Board

11.31

11.83

1.30

34.

Kawartha Pine Ridge District School Board

10.78

11.56

1.04

35.

Keewatin-Patricia District School Board

10.27

10.56

1.63

36.

Kenora Catholic District School Board

9.88

7.89

1.62

37.

Lakehead District School Board

11.27

10.98

1.35

38.

Lambton Kent District School Board

11.62

11.83

1.05

39.

Limestone District School Board

11.31

11.83

1.06

40.

London District Catholic School Board

11.24

9.83

1.02

41.

Near North District School Board

11.33

11.52

1.19

42.

Niagara Catholic District School Board

11.19

10.91

1.03

43.

Nipissing-Parry Sound Catholic District School Board

10.94

11.83

1.19

44.

Northeastern Catholic District School Board

11.83

11.83

1.55

45.

Northwest Catholic District School Board

11.83

0

1.62

46.

Ottawa-Carleton District School Board

11.10

11.54

1.03

47.

Ottawa Catholic District School Board

10.89

10.54

1.03

48.

Peel District School Board

9.86

10.68

1.00

49.

Peterborough Victoria Northumberland and Clarington Catholic District School Board

10.74

8.63

1.04

50.

Rainbow District School Board

11.22

11.83

1.20

51.

Rainy River District School Board

10.19

11.83

1.62

52.

Renfrew County Catholic District School Board

11.52

11.83

1.11

53.

Renfrew County District School Board

11.20

11.51

1.12

54.

Simcoe County District School Board

10.55

11.05

1.04

55.

Simcoe Muskoka Catholic District School Board

9.95

8.68

1.04

56.

St. Clair Catholic District School Board

11.12

10.14

1.05

57.

Sudbury Catholic District School Board

11.31

10.95

1.17

58.

Superior-Greenstone District School Board

11.55

11.17

1.56

59.

Superior North Catholic District School Board

11.06

0

1.58

60.

Thames Valley District School Board

11.48

11.68

1.02

61.

Thunder Bay Catholic District School Board

11.29

11.83

1.30

62.

Toronto Catholic District School Board

11.29

10.92

1.03

63.

Toronto District School Board

11.63

11.72

1.03

64.

Trillium Lakelands District School Board

11.71

11.18

1.10

65.

Upper Canada District School Board

11.18

11.32

1.05

66.

Upper Grand District School Board

10.49

10.74

1.02

67.

Waterloo Catholic District School Board

10.78

10.05

1.00

68.

Waterloo Region District School Board

10.74

11.34

1.00

69.

Wellington Catholic District School Board

9.91

10.46

1.01

70.

Windsor-Essex Catholic District School Board

11.08

10.75

1.05

71.

York Catholic District School Board

9.88

10.09

1.00

72.

York Region District School Board

9.64

10.18

1.00