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The Better Schools and Student Outcomes Act, 2023, S.O. 2023, c. 11 has come into force with respect to the newly imposed powers of the province in acquisitions and dispositions of school board property.
Beginning December 31, 2023, considerable changes to school board real property matters have come into force in Ontario. These legislative changes are established through s. 194 of the Education Act, as well as Ontario Regulation 374/23 Acquisition and Disposition of Real Property, which supersedes Ontario Regulation 444/98, Disposition of Real Property.
The following are key changes to the Minister’s role in the acquisition and disposition of school board property, though this list is non-exhaustive. Section references correspond to O. Reg. 374/23, unless otherwise provided.
Discretionary Disposition (S. 1(2)):
Pursuant to O. Reg. 444/98, a school board may sell, lease or otherwise dispose of a school site, part of a school site, or other real property if the board of trustees adopt a resolution that the property was not required for the purposes of the school board. Additional circumstances have been introduced by O. Reg. 372/23. This includes where the school board adopts a resolution that the disposition is a reasonable step in a plan to provide accommodation where it also acquires another school site or enters into an agreement to use the disposed property for pupil accommodation, and obtains the Minister’s approval for the disposition.
Mandatory Disposition – Non-Use Over 10 Years (S. 2):
Introduced by O. Reg. 374/23, if a board has identified that a school site or other property of the school board is not currently being used and the site or property is not needed to meet the school board’s current or pupil accommodation needs over the next 10 years, the school board shall defer to the Minister’s decision to notify the school board whether it is required to dispose of the property, which it may then be required to sell, lease or otherwise dispose of, subject to the Minister’s approval.
A disposition of property authorized under s. 1(1)(a) or required under s. 2(1) shall be done in accordance with the process set out in sections 5 to 7, unless it meets one of the exceptions set out in s. 4.
Notice of Disposition (S. 5):
Pursuant to s.5, the Minister may determine to whom the school board must offer the property, if it is disposing of the property.
School boards, the Province of Ontario, and “bodies who require the property in order to achieve such provincial priorities as have been identified” may be prioritized for the offer of the property.
Offer to Acquire (S. 6):
Modifying the language of s. 10 of the previous regulation, O. Reg. 374/23 provides that the school board and the person to whom an offer is made shall have 90 days from the day of the Minister’s response under s. 5 to enter into an agreement for the disposition of the property. The two parties may agree to extend the time for entering into an agreement for an additional 90 days. In addition, the board must notify the Minister within 14 days that an agreement has been reached, that the parties have agreed to extend the timeline, or that an agreement was not reached within the specified time.
Leased Property (S. 9):
In respect of property leased before the day O. Reg. 374/23 comes into force on December 31, 2023, sections 1 to 8 apply upon the expiry of the lease and in respect of any subsequent lease of the property.
Transition from Previous Regulation (S. 11):
Any property that a board issued a proposal to sell, lease or otherwise dispose of before December 31, 2023 pursuant to section 3 or 4 of O. Reg. 444/98 shall continue in accordance with that regulation (despite its revocation) until 3 years after the expiry of the 180-day period referred to in s. 10(2)(b)(ii) of O. Reg. 444/98.
Notice of Acquisitions (S. 12):
In accordance with the previous regulation, a school board shall give notice to the Minister of its intent to acquire or apply to expropriate a school site or other land at least 60 days before the acquisition or application. However, the new regulation proposes additional timelines. The school board shall not proceed with a proposed acquisition or application to expropriate if it receives the notice not to proceed on or before the following:
- If a board does not require the approval of the Minister to spend or receive funds, the 60th day after the day notice is given under subsection (1).
- If a board does require the approval of the Minister to spend or receive funds, 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.
The notice period will also be different for the proposed acquisition of a school site, part of a school site or other property.
If you have any questions, please contact Miller Thomson’s Municipal, Planning & Land Development / Education teams.
