City of Powell River Council will consider updating its city property policy to charge fair market value for city-owned real estate.
At the November 5 committee of the whole meeting, councillors considered a three-part recommendation to develop a new policy to include processes for all types of acquisitions and disposals of city-owned property.
City chief administrative officer Lisa Bhopalsingh said councillors had a staff report following council’s direction, where council directed staff to propose a new policy to replace the city’s lease rate bylaw.
“What we have put forward to you aligns with council’s strategic priority under the heading of economic vibrancy, where you have a priority to increase revenue generation from the city’s assets,” said Bhopoalsingh. “What we have before you aligns with the Community Charter requirements for municipalities to charge fair market value for city-owned real estate. Staff are proposing a draft policy for your consideration.”
Bhopalsingh said the policy gives a combination of different methods that staff can use to evaluate the market rate for the lease of different city properties.
The first recommendation was that the committee recommend that council repeal the existing lease rate bylaw, which passed unanimously.
The committee then considered the second recommendation, that council adopt the new city property policy, which it carried unanimously.
The third recommendation was the committee directs staff to continue developing the city property policy to include processes for all types of acquisitions and disposals of city-owned property. The recommendation passed unanimously.
According to the staff report, under the policy, staff would determine the fair market value for lease rates for city-owned property using a combination of factors and methodologies, including: comparable market analysis; local economic conditions; regulatory framework; valuation methods; and periodic reviews.
The policy would also set out circumstances when an external appraiser may be required or preferred by the city. All external appraisals would be reviewed by the city as a prerequisite to negotiations, according to the staff report.
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