BONNYVILLE – Following an internal review of all lands titled to the MD of Bonnyville, administration uncovered properties belonging to the municipality acquired through tax forfeiture and through changes to land designation.
The internal review found that four vacant and undeveloped lots in the Hamlet of Therien had been transferred to the municipality, with at least two transfers due to tax forfeiture.
MD documents show that these parcels of land came into the municipality’s possession in 1969, 1998, 2005 and 2006. The estimated market value of these properties ranges from $6,780 to $11,480.
The review also uncovered three parcels of land owned by the MD at Muriel Lake.
Administration was able to determine that when the subdivision plan was originally registered in 1978, the area was designated as Reserve Lands.
However, the reserve designation was removed in 1983 and the lot was further subdivided into six parcels. Portions of Birch and Bear Road were extended to access the newly created lots, but the new lots were never dealt with at the time.
The estimated market value of these undeveloped parcels ranges from $36,730 to $38,150.
On Sept. 29, 2022, council was presented with the findings during a workshop. During those discussions, administration recommended that the four vacant lots in Therien and the three lots at Muriel Lake be sold at public auction as the municipality has no current or future planned use for the parcels.
At council’s regular council meeting on March 28, a motion was approved by council to put up the seven lots for public auction, as per the Municipal Government Act and the MD’s Municipal Lands Policy.
Coun. Dana Swigart followed by making another motion to have the Municipal Lands Policy be reviewed and possibly amended to allow the municipality to list properties for sale at appraised market value if they are not successfully sold during public auction.
The way the municipal policy is written right now, lands and property owned by the MD can only be sold by public auction.
“Although our policy currently doesn't allow for it, we could list the properties for sale with a motion from council and list them at whatever the market value is at that time,” explained the MD’s CAO Al Hoggan. “Every piece of property that the MD takes on tax forfeiture will have been tried to be sold at least once as part of the tax forfeiture auction.”
To avoid unsold parcels returning to council year after year to be placed for public auction, Swigart expressed his preference to revisit the policy to allow parcels to be listed for sale on the open market.
Swigart’s motion was carried.
“For parcels held by the municipality under Tax Forfeiture Title, the lands shall be sold by Public Auction and each parcel shall be subject to a reserve bid equal to 90 per cent of the estimated market value and approval by council,” states Section 4 of the MD of Bonnyville’s Municipal Lands Policy.
“For all other lands held by the municipality, each parcel shall be subject to a reserve bid equal to 80 per cent of the estimated market value and approval by council.”
