When a municipality is in the process of buying or selling municipal land, holding discussions about the land transaction in an open session could affect the municipality’s bargaining position or negotiation strategy. The purpose of the exception for acquisition or disposition of land is to protect the municipality’s bargaining position by permitting discussions to be held in closed session about a proposed or pending acquisition or disposition of land by a municipality.
In order for the exception for acquisition or disposition of land to apply, the municipality must either own the land or be the prospective owner of the land that is the subject of the proposed or pending land transaction. Generally, a municipality must be either the seller or purchaser of the land in order for the exception to apply.[1]
The exception does not apply to discussions that involve speculation about a land transaction or discussions about land transactions that may or may not happen in the future.[2] The discussion must involve an actual land transaction that is currently pending or has been proposed.[3] For example, a discussion about a staff report that contains general information on properties the municipality may have an interest in acquiring at some point in the future, but where no steps have been taken to purchase the properties, does not fit within the exception. In contrast, a staff report on current and pending land transactions where the municipality is a party is likely to fit within the exception.[4]
The exception also generally applies to discussions where the municipality is acquiring or disposing of other types of property interests like easements,[5] lease agreements,[6] and subdivision agreements.[7]
If the other party to the land transaction, or the other party’s representatives, are present during a closed session discussion about the potential purchase or sale, the exception generally does not apply because the municipality’s bargaining position or negotiation strategy is no longer confidential.[8]
If a municipality publicly discloses or discusses a pending land transaction in open session, depending on the circumstances, it may still be able to hold subsequent discussions about the land transaction in closed session under the exception for acquisition or disposition of land.[9]
[1] City of Port Colborne, November 19, 2015
[2] Town of Fort Erie, April 13, 2015
[3] Village of Burk’s Falls and Armour Township, October 28, 2015
[4] City of London, April 24, 2014
[5] Township of Russell, August 8, 2014
[6] City of Port Colborne, November 19, 2015
[7] Township of Enniskillen, April 3, 2009
[8] Town of Orangeville, January 24, 2014
[9] Town of Ajax, March 28, 2014