Act
Proposed Improving Real Estate Management Act, 2023 - Centralization of Broader Real Estate Authority (CBREA) Phase 2
Regulation Number(s):
n/a
Instrument Type:
Act
Bill or Act:
Improving Real Estate Management Act, 2023
Summary of Proposal:
The Ontario Government's real estate portfolio is one of the largest in Canada. Accountability is highly distributed across numerous entities and ministries. The government is working towards a holistic approach for the management and decision making of real estate.
A holistic approach would allow the province to improve the maintenance and management of real estate, resulting in long-term efficiencies, improved economic growth, and, most importantly, saving taxpayers' money. Moving forward, it would also reduce duplication and help identify real estate that could be used for projects that people in Ontario need the most.
The proposed Bill would amend 10 Acts in relation to the real property interests of 10 entities and one (1) proposed entity to: (1) make the ability of certain entities to hold interests in land, buildings and structures subject to limits imposed by section 11.0.1 of the Ministry of Infrastructure Act, 2011, or (2) through a tailored approach that would prohibit freehold real property acquisitions and/or freehold real property dispositions, and/or mandate that entities obtain Lieutenant Governor in Council (LGIC) or ministerial approval and/or comply with possible LGIC regulations for freehold real property acquisitions and/or freehold real property dispositions.
It is proposed that the legislative amendments would come into force on a day to be named by proclamation of the LGIC, which MOI would propose as April 1, 2025.
In connection with amendments made to the Ministry of Infrastructure Act, 2011 (not yet in force), complementary amendments are proposed to the following four (4) Acts:
1. Ontario Agency for Health Protection and Promotion Act, 2007
2. Connecting Care Act, 2019
3. Centennial Centre of Science and Technology Act
4. Niagara Escarpment Planning and Development Act
These complementary amendments would make the ability of certain entities to hold interests in real property subject to limits imposed by the new (but not yet in force) section 11.0.1 of the Ministry of Infrastructure Act, 2011. This proposed section would deem any such interests in real property to vest in the Crown and to be under the control of the Minister of Infrastructure on the day on which a regulation prescribing the entity comes into force.
MOI is also proposing legislative amendments to the following six (6) Acts:
1. McMichael Canadian Art Collection Act
2. Metropolitan Toronto Convention Centre Corporation Act
3. Ottawa Convention Centre Corporation Act
4. Royal Ontario Museum Act
5. Science North Act
6. Algonquin Forestry Authority Act
This tailored approach would prohibit specific realty activities and/or require that approval from the LGIC or the Minister of the entity's oversight ministry be obtained and/or to comply with possible LGIC regulations for freehold real property acquisitions or freehold real property dispositions.
Second Reading took place on November 21, 2023.
A holistic approach would allow the province to improve the maintenance and management of real estate, resulting in long-term efficiencies, improved economic growth, and, most importantly, saving taxpayers' money. Moving forward, it would also reduce duplication and help identify real estate that could be used for projects that people in Ontario need the most.
The proposed Bill would amend 10 Acts in relation to the real property interests of 10 entities and one (1) proposed entity to: (1) make the ability of certain entities to hold interests in land, buildings and structures subject to limits imposed by section 11.0.1 of the Ministry of Infrastructure Act, 2011, or (2) through a tailored approach that would prohibit freehold real property acquisitions and/or freehold real property dispositions, and/or mandate that entities obtain Lieutenant Governor in Council (LGIC) or ministerial approval and/or comply with possible LGIC regulations for freehold real property acquisitions and/or freehold real property dispositions.
It is proposed that the legislative amendments would come into force on a day to be named by proclamation of the LGIC, which MOI would propose as April 1, 2025.
In connection with amendments made to the Ministry of Infrastructure Act, 2011 (not yet in force), complementary amendments are proposed to the following four (4) Acts:
1. Ontario Agency for Health Protection and Promotion Act, 2007
2. Connecting Care Act, 2019
3. Centennial Centre of Science and Technology Act
4. Niagara Escarpment Planning and Development Act
These complementary amendments would make the ability of certain entities to hold interests in real property subject to limits imposed by the new (but not yet in force) section 11.0.1 of the Ministry of Infrastructure Act, 2011. This proposed section would deem any such interests in real property to vest in the Crown and to be under the control of the Minister of Infrastructure on the day on which a regulation prescribing the entity comes into force.
MOI is also proposing legislative amendments to the following six (6) Acts:
1. McMichael Canadian Art Collection Act
2. Metropolitan Toronto Convention Centre Corporation Act
3. Ottawa Convention Centre Corporation Act
4. Royal Ontario Museum Act
5. Science North Act
6. Algonquin Forestry Authority Act
This tailored approach would prohibit specific realty activities and/or require that approval from the LGIC or the Minister of the entity's oversight ministry be obtained and/or to comply with possible LGIC regulations for freehold real property acquisitions or freehold real property dispositions.
Second Reading took place on November 21, 2023.
Analysis of Regulatory Impact:
The ten entities and one proposed entity of this proposal do not fall under the definition of regulated entities under the Modernizing Ontario for People and Businesses Act, 2020 (MOPBA). However, third-party landlords that are a party to any of the entities' existing leases that would be taken over by MOI as well as associated contractors and sub-tenants (if the proposed legislative amendments are passed and proclaimed into force and a regulation is made prescribing entities for the purposes of sections 11.0.1 of the Ministry of Infrastructure Act, 2011 would be regarded as "regulated entities" under MOPBA).
Further Information:
Proposal Number:
23-MOI008
Posting Date:
November 16, 2023
Comments Due Date:
December 31, 2023
Contact Address:
Ministry of Infrastructure, Realty Policy Branch, 777 Bay Street, 2nd Floor, Toronto, Ontario, M7A 2J3