FUNDING FOR THE PROCEEDS OF SALE FROM DISPOSITION OF REAL PROPERTY
Requesting $6,708,411 for the 2020-21 Supplementary Estimates B
Transport Canada (Air, Marine and Environmental Programs) is seeking access to $6,708,411 in planned spending authorities.
Key Messages:
- The proceeds are the result of one sale of property in Windsor, Ontario that occurred in December 2019, as well as 9 sales of surplus St. Lawrence Seaway properties in Niagara-on-the-Lake, Ontario that occurred between November 2019 and May 2020.
- As is the case for all departments, Transport Canada is permitted to access the proceeds of the sale of surplus properties to finance real property management activities, including the management of contaminated sites.
- Access to $6.7M in Proceeds of Sale will support activities related to the management and stewardship of the department’s contaminated sites in 2020-2021.
- The funds are necessary to assess and remediate federal contaminated sites and reduce the risk to human health and the environment.
Background
- In accordance with the Treasury Board Directive on the Sale or Transfer of Surplus Real Property, Section 6.10, departments are permitted to use the net proceeds from the sale of real property for asset management. To share in the net proceeds of sale, the custodian must have an approved investment plan, reinvest the proceeds in real property, consistent with their approved investment plan, and satisfy the reporting requirements of the Treasury Board Reporting Standard on Real Property. The Directive notes that access to the proceeds should be requested within the same fiscal year as deposited in the Consolidated Revenue Fund, although reprofiles are often sought for Proceeds of Sale deposited in the latter part of the fiscal year (late 3rd and 4th quarters).
- $6.7M in Proceeds of Sale are required in 2020-21 and the remaining $3.1M in 2021-22 to support environmental remediation and assessment projects related to the department’s federal contaminated sites. A history of commercial and industrial activity has resulted in 303 contaminated sites at facilities operated or managed by TC with associated environmental financial liabilities of $250M.
- The Proceeds of Sale of $9,843,017.85 are related to 10 sales of surplus land, which occurred between November 2019 and May 2020:
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- Windsor NDB (1007 Sandwich West, Lasalle, ON) – $380,000 (December 2019)
- Niagara-on-the-Lake Sales (1) – $746,758.52 (November 2019)
- Niagara-on-the-Lake Sales (2) – $4,691,483.61 (March 2020)
- Niagara-on-the-Lake Sales (3) – $579,844.00 (April 2020)
- Niagara-on-the-Lake Sales (4) – $877,426.09 (April 2020) and $197.21 (May 2020)
- Niagara-on-the-Lake Sales (5) – $634,736.00 (April 2020)
- Niagara-on-the-Lake Sales (6) – $1,418,923.90 (April 2020)
- Niagara-on-the-Lake Sales (7) – $33,677.00 (April 2020)
- Niagara-on-the-Lake Sales (8) – $316,572.00 (May 2020)
- Niagara-on-the-Lake Sales (9) – $163,489.13 (May 2020)
- The Proceeds were deposited into the Consolidated Revenue Fund.