Canadian Lawyer

w w w . C A N A D I A N L a w y e r m a g . c o m O C T O B E R 2 0 1 5 15 community can market itself around the availability of land. "I think they work to a degree because every time you sell a lot to a new person, you've gained that person and that family" and that increases the viability of the community, says McConnell. "There's definitely been some revitalization." As in any real estate transaction, zoning specification, availability of services, the ability to search title, and the disclosure of easements or covenants on title need to be covered. But the agreement should also contain details of what the municipality is providing, what it requires from the new property owner, and what happens if the new owner can't meet his or her commit- ments. "To my mind there's absolutely no dif- ference if you're paying $1 for land or $1,000," says Rodney Ikeda, who practises real estate and development law in Toronto. The investment goes beyond the cost of the land. The community itself must also fit the needs of the individuals moving there and be able to sustain them. Ikeda considers life- style an important consideration. Are there jobs for the people the community is trying to attract or can the individuals looking to purchase sustain themselves in this new environment? If not, are there jobs within a reasonable commute? And if they're not working, are there activities available that match their interests? Services and ameni- ties such as schools, banks, health care, and hospitals and practical considerations such as the distance to gas stations all play a role. Then there's the lot itself, its zoning, and how it is serviced: whether there is munici- pal water or if a well needs to be dug; is the water potable and accessible; is there a sewer system or is a septic system required; is there access to natural gas, phone, and cable service; is there garbage collection; what is the state of repair of the roads; are they plowed; and is electricity readily avail- able? "When it gets to the nitty-gritty, what exactly am I being offered?" asks Ikeda, who would also be concerned about the environmental state of the property and ask that the municipality provide a guarantee of its cleanliness. "A purchaser is going to have to nail down what he is getting." The purchaser may also want to build contingencies into the agreement in the event he can't meet the time deadlines or runs out of money and if the municipality doesn't fulfill its end of the agreement. "The bottom line is there's no such thing as a free lunch," concludes Ikeda. Staff and the council in Saint-Louis- de-Blandford, Que. have declared its land promotion a success. "But right now, we don't have any more land to give," says Pascal Allaire, general director of the town of about 900 a little more than an hour's drive from Quebec City. The first 45 lots were handed out in 2010 and building on them started the following year. Through money provided by the municipality, the town's economic development commit- tee set out the terms and conditions for the sale, requiring a $1,000 downpayment from buyers. Once the house is constructed, which is required within a year of the land purchase, the downpayment is returned. Now, Saint-Louis-de-Blandford is hop- ing to offer another 45 to 47 lots, but that involves re-zoning of existing farmland and requires permission from the province. "It's possible the government doesn't give the authority of 45 to 47 in one shot. It's a negotiation," says Allaire. The community is prepared if the province only permits the conversion of small plots of land at a time, meaning only a handful would be offered to new residents. This approach may not work so well in Ontario, where the Ontario Municipal Act prevents against providing businesses with land below the market value. "There are legislated provisions that a municipality really ought to look at before going down this road in Ontario," says David Germain, a municipal lawyer with Thomson Rogers. But, he adds, for any municipality looking at offering this type of incentive, enforce- ment can really be key. And if the host com- munity is imposing some kind of require- ments, the purchaser of the land will want to know what he's getting into. While the idea of attracting residents through land promotions has piqued some interest in Newfoundland, the provincial municipalities act is somewhat restrictive. "There is legislation in this area that towns would need to be aware of," says Bill Shep- pard, a St. John's-based lawyer with Stewart McKelvey. "They're not just supposed to sell land, there's a process they should follow." Like Ontario, municipalities in New- foundland are restricted on how a munici- pality sells or offers its land. One section of the legislation seems to allow some wiggle room for land sales, but other sections seem contradictory. If a municipality wants to sell land below fair market value to attract more residents, Sheppard suggests the best route would be to first get clarification from the minister's office. Saskatchewan municipalities have relied upon the use of land promotion to build up municipalities during tough economic times. And in that province, which relies upon three pieces of legisla- tion to govern municipalities — The Cit- ies Act, The Municipalities Act, and The Northern Municipalities Act — it is an acceptable approach. "There is actually a lot of discretion," says Steven Dribnenki, a lawyer with the Saskatchewan Urban Municipalities Association. "It's an avail- able option." From a municipality's perspective, a multi-faceted strategic plan with proper planning of the land itself and the condi- tions that come with it are required to ensure success. "You don't want today's vacant lots to turn into tomorrow's aban- doned communities," says Dribnenki. With a well-planned overall strategy that address- es the needs of the municipality, the new residents, and the existing community, it's a strategy that could well successfully revital- ize a community. "Towns have actually disappeared," adds Neil Robertson, who worked for the city of Regina and continues to practise municipal law with Robb & Dowling. "It was the notion of: 'Look, we've got this land, it's sitting idle. If we can entice people to build here it would become tax- able land'" and boost the viability of the community. The challenge for the smaller communities with a smaller tax base and a limited budget is to put together a viable plan with agreements containing appro- priate covenants to ensure they achieve their goal without having to incur addi- tional legal expenses. Ideally, the munici- pality would hold the title of the property until the building is complete, but that makes it difficult for the new resident to obtain the necessary financing. Taylor-Faye declares Craik's eco-village a success. Through the offering of 22 unser- viced lots, the village was able to boost its population with permanent and part-time residents who embrace the green living lifestyle, while bringing down the average age of its residents. "It's a hidden gem in the back door of Saskatchewan," he declares.

• Cover