Section A LEGISLATIVE FRAMEWORK
The following legislation provides authority for the preparation of a Community Improvement Plan:
A.1 Municipal Act, 2001
Section 106 (1) of the Municipal Act, 2001 prohibits municipalities from assisting directly or indirectly any manufacturing business or other industrial or commercial enterprise through the granting of bonuses for that purpose. A municipality may not grant assistance by:
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Giving or lending any property of the municipality, including money;
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Guaranteeing borrowing;
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Leasing or selling any property of the municipality at below fair market value; or
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Giving a total or partial exemption from any levy, charge or fee.
However, the Municipal Act, 2001 provides an exception to the restrictions note above, where council has exercised its authority under Section 28 of the Planning Act.
A.2 Planning Act
Section 28 of the Planning Act stipulates that where an Official Plan contains provision relating to community improvement, council may, by by-law, designate all or any part of an area covered by such an official plan as a community improvement project area. The community improvement is where council deems desirable because of age, dilapidation, overcrowding, faulty arrangement, unsuitability of buildings or any other environmental, social or community economic development reason.
Under the Planning Act, a municipality may engage in the following for the purpose of carrying out a community improvement plan:
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Acquire, hold, clear, grade or otherwise prepare land for community improvement;
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Construct, repair, rehabilitate or improve buildings on land acquired or held by it in conformity with the community improvement plan;
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Sell, lease, or otherwise dispose of any land and buildings acquired or held by it inconformity with the community improvement plan; and
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Make grants or loans in conformity with the community improvement plan to the registered owners, assessed owners or assignees to pay for eligible costs.