Disposition of Real Property by School Boards

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Ontario Regulation 374/23, enacted under the Education Act, outlines the processes for the acquisition and disposition of real property by school boards. This regulation aims to ensure the effective management of school properties, aligning with the needs of the educational system while maintaining governmental oversight.

The regulation differentiates between discretionary and mandatory dispositions of school properties. Under discretionary disposition, school boards can sell, lease, or otherwise dispose of school sites or other properties if they determine through a board resolution that the property is no longer necessary for their operations. A board may proceed with a disposition if it is part of a plan to provide accommodation for students, provided they acquire another property or enter an agreement for pupil accommodation use. Notably, any such disposition requires the Minister’s approval. Additionally, boards may grant easements over properties if they adopt a resolution indicating the easement is not needed for board purposes, if the consideration for the easement is deemed reasonable, and if it does not impact the suitability of any school site for pupil accommodation.

Mandatory disposition comes into play when a property is identified as unused and not needed for pupil accommodation in the next ten years. In such cases, the Minister must consider additional factors before determining whether the property must be disposed of. Furthermore, the Minister can exempt a property from mandatory disposition if the board can demonstrate that it will need the property for pupil accommodation beyond the ten-year timeframe.

All dispositions under this regulation must occur at fair market value unless specified otherwise. Exceptions include instances where properties are sold or leased to municipalities or organizations providing child care services, thus aligning with broader community service goals.

Provisions concerning leasing are also included, particularly for properties that were last used for pupil accommodation. Lease offers must adhere to a calculated formula based on the property’s size and intended educational use, ensuring fair pricing that aligns with educational funding frameworks.

Regarding acquisitions, boards must notify the Minister at least 60 days before purchasing or expropriating property. If the property involves another board’s site, the Minister’s approval is necessary, and boards cannot proceed without this consent. The regulation emphasizes transparency and communication with the Minister during negotiations for pupil accommodation.

The regulation aims to streamline processes, improve accountability, and ensure that surplus properties serve broader societal needs. Its emphasis on ministerial oversight and fair market transactions underscores a commitment to responsible governance in education-related property dealings.

Ontario (374/23) December 23, 2023