Crown Land Sales/Use of Public Land To Municipalities For Public Works
NOW THEREFORE BE IT RESOLVED THAT the Alberta Urban Municipalities Association requests the Government of Alberta to re-establish its policy of selling Provincial Crown Land to municipalities for “public works” for a nominal sum.
WHEREAS the Government of Alberta recognized beginning in 2006 that Government of Alberta owned Crown Land sold to municipalities for public works would be sold for a nominal sum (subject to a sell-back agreement registered on title);
WHEREAS on September 10, 2009, this policy was changed due to provincial budget challenges to require municipalities to pay appraised value for all Crown Land purchases even if required for a specific public work; and
WHEREAS the recent policy change is effectively downloading costs to municipal governments from the Provincial Government.
Jun 29, 2011 - Alberta Municipal Affairs
Due to fiscal restraint, sales to municipalities of public land for public works purposes, for the nominal sum of $1.00, have been suspended until further notice. Alberta Sustainable Resource Development (SRD) honoured written commitments to proceed with several nominal sum land sales to municipalities for public works that were negotiated before this suspension was introduced.
Guidelines that define the land values SRD uses for selling public land to municipalities, cities, towns and villages for specific public works are in place. These guidelines allow the ministry to sell land to municipalities at a price lower than its current market value.
When a municipality applies to purchase public land for a waste treatment site, sewage lagoon, landfill, waste transfer station or cemetery, and SRD determines that the public land is suitable for sale, the land is sold for a price based on an average agricultural land value related to the land location zone as follows:
- Upper Hay: $225 per acre
- Northwest/Northeast: $750 per acre
- Eastern Slopes/Prairies: $1,500 per acre
Land sold for these purposes has a restrictive caveat registered on the title, which limits its use to the specified public work. If a municipality intends to use the land for any other type of development, the public land value is determined by current appraised market value.
Jun, 2012 - Alberta Treasury Board and Finance
“As you indicate, the government suspended the nominal sum disposals in 2009 as part of the spending restraint initiatives introduced at that time. Since then, the economy has improved, and while I appreciate the concerns you have outlined in your letter, fiscal challenges for the government continue, and as a general position, it is important that Albertans receive fair value when their assets are sold. Moreover, any decision to rescind the suspension would need to be considered within the context of the current fiscal situation and the overall priorities of government. While there are no plans to end the suspension, exceptions can be considered by Treasury Board on a case-by-case basis.”
AUMA accepts this response.