Presentation to Cornwall City Council Cornwall, Ontario April 23, 2018 Rachel Parkin Manager, Strategic Program Policy Real Property Management RDIMS # 13995966

Overview Background Strategic Disposition Rationale Review of the Strategic Disposition Process Status of Due Diligence Work Inventory of Surplus Cornwall Properties Consultations and Engagement Next Steps Contact Us

Background In 2012, the St. Lawrence Seaway Management Corporation (SLSMC) conducted a review of all the land holdings they manage on behalf of Transport Canada and identified 95 as surplus to operational needs (one property has been since reclassified to operational land). In June 2013, Transport Canada received approval to move forward with a strategic disposition of the 5,400 acres of surplus St. Lawrence Seaway Lands, including eight properties in Cornwall, Ontario. Since then, Transport Canada has been working to complete the necessary due diligence work to divest the surplus properties.

Strategic Disposition Rationale Most Government of Canada transactions for surplus real property are routine, unless they meet one of the following conditions: the size or value of the property, or a portfolio of properties, is significant enough to affect local markets negatively if its integration into the market is not managed; the value of the property, or portfolio of properties, can be increased significantly, e.g. through subdivision, rezoning, investment, or pre-sale development; a partnership with another level of government, the private sector, or other party may offer the best mechanism to realize either the inherent value of a particular property, or portfolio of properties, or the greatest benefits to the government beyond the financial return; or, sensitive policy issues exist, including the potential for a substantial gain by a party other than the federal government.

Strategic Disposition Process After a surplus federal real property is determined to qualify for strategic disposal, the department typically undertakes the following due diligence work: Environmental Site Assessments and reports to assess the environmental and physical condition of the property; Property appraisals to determine highest and best use, in compliance with Treasury Board’s Standard on Appraisals and Estimates; Assessment of the department’s duty to consult Indigenous groups on the disposal of the property, with consultations completed, as required; Property surveys to determine legal boundaries, the location of any structures, and any encumbrances on the property; Title confirmations; and A heritage and/or archaeological assessment of structures. Following the completion of the due diligence work, the department also determines the degree of public purpose interest by simultaneously providing federal departments, agent Crown Corporations, and provincial and municipal governments an opportunity to identify their interest. Once all of the due diligence work is complete, the property/properties are typically sold to Canada Lands Company (CLC), who would work to add strategic value to the properties, and sell them on behalf of the Crown.

Map of the Surplus Cornwall Properties

Overview of Individual Properties CW-001-01 Waterfront, 0.43 ha. One federal government MOU. Not serviced; land locked. CW-001-02 Waterfront,12.66 ha. Three leases and three licences with the City of Cornwall. One MOU and one lease with other federal government departments. One utility licence.

Overview of Individual Properties CW-001-03 Waterfront, 52.24 ha. Two leases and four licences with the City of Cornwall. One industrial lease; two utility licences. Primarily used for recreational purposes and includes old canal. CW-001-04 Waterfront, 3.3 ha. One industrial lease, one utility licence. Remediation activities ongoing onsite.

Overview of Individual Properties CW-001-05 Waterfront, 8.14 ha. One licence with the City of Cornwall. One industrial lease, three utility licences. A portion of the parcel is vacant. CW-001-06 Waterfront, 4.44 ha. One commercial lease, three residential leases. Primarily vacant land.

Overview of Individual Properties CW-001-07 Waterfront, 6.85 ha. Two leases with the City of Cornwall. One commercial and one residential lease. A portion of the parcel is vacant. CW-001-08 Waterfront, 41.93 ha. One utility lease, one utility licence. Primarily used for power generation.

Status of Due Diligence Work in Cornwall All survey and appraisal work has been completed, with only PIN corrections remaining. Environmental work will be undertaken by CLC, on behalf of Transport Canada, following the sale of lands. Awaiting heritage determination for the RCAFA building. Transport Canada has a duty to consult the Mohawk of Akwesasne on the sale of the surplus lands, and consultation is ongoing. Assessment of public purpose interest will occur later in 2018. Discussions with CLC will continue into 2018, although CLC’s initial assessment indicates interest in all eight surplus properties.

Consultations and Engagement SLSMC has sent letters to current tenants and licensees, informing them that the lands being leased and/or licences have been identified as surplus to the operations of the Seaway. As a current tenant, the City of Cornwall should have received a letter in 2014, previous to the commencement of the due diligence work. Many tenants have expressed interest in purchasing their leased lands. Transport Canada will continue to engage the Mohawk of Akwesasne regarding the disposition of properties. Transport Canada will ensure that the disposition process remains transparent.

Next Steps Transport Canada will initiate an “Assessment of Interest” to the different levels of government later this year in an effort to identify any public purpose in the properties. Transport Canada will continue to engage the Mohawk of Akwesasne on the disposal of the Cornwall properties. The divestiture of the properties is expected within two years.

Questions? Patricia Towe Senior Program Policy Analyst If the City of Cornwall has additional questions, or wishes to discuss the surplus Cornwall properties further, do not hesitate to contact us at: Patricia Towe Senior Program Policy Analyst Real Property Management (AHPR) 330 Sparks Street Ottawa ON K1A 0N5 patricia.towe@tc.gc.ca 613-993-6785