In 2017 City Council received a staff report entitled “Authority to Modernize Mandate – Commence Revised Real Estate Acquisition, Disposal and Leasing Strategy.” The report included a recommendation to investigate a Municipal Development Corporation (MDC) as a distinct entity and with a defined mandate for strategic projects.
In 2019, City Council received a consultant’s report to further explore the development of a Municipal Development Corporation and the report identified several advantages of a real estate corporations, such as: This 2019 informative report prepared by NBLC, titled “Business Case Framework for a Municipal Development Corporation” identified several advantages of a municipal corporation, which included:
In June 2020, City Council received a Business Case for the development of an MDC, which aligned to Brampton Vision 2040. The Business Case was approved in principal and directed staff to proceed to the public consultation phase. This survey forms part of the consultation.
In Ontario, a Municipal Development Corporation (MDC) is a wholly owned corporation of the municipality for the purposes of delivering a service that the municipality is authorized to provide. In this case, for the City of Brampton, an MDC is a real estate corporation that strategically acquires, assembles, develops and sells land/assets. The Brampton MDC is a wholly owned corporation of the City of Brampton and all revenue generated is allocated back to the City in the form of dividends.
Currently, the municipal service is being provided by a municipal staff committee consisting of representatives from Realty Services, Legal Services, Economic Development and Finance. The Commissioner of Community Services and Treasurer are authorized to jointly execute Agreements of Purchase and Sale conditional upon the approval and ratification of the Agreement of Purchase and Sale by City Council.
The Brampton MDC would be governed by an independent Board of Directors consisting of City Councillors and members of the Public. The Business Case recommends the Mayor (for the term of Council), 2 Councillors (for the term of Council), 4 Community Members (staggered terms), and the Brampton CAO (non-voting).
Positions for the Community members on the Board of Directors will be advertised, recruited, and thereafter be appointed by City Council.
The Board of Directors will establish and adopt corporate policies. The implementation of the policies will be managed by a Chief Executive Officer and a professional team consisting of Project Managers, Lawyers, and Real Estate Agents.
The corporation is initially funded by the City of Brampton, and thereafter, gross revenue generated by the corporation will fund operations and future acquisitions. Net revenue in the form of dividends will be directed back to the City of Brampton as the sole shareholder of the corporation.
As a legal requirement, City Council would be required to establish an Asset Transfer Policy to regulate the asset transfers between the two corporations.
The Brampton MDC aligns with Brampton Vision 2040 by governing and managing real estate and assets within the six project areas identified in the visionary document: Uptown Brampton; Downtown Brampton; Bramalea; Queen Street Corridor; Five Town Centres; and the Industrial Corridor.
As a wholly owned corporation, Brampton MDC will be responsible for realty-based economic development services within the defined six geographical areas. This includes:
The Brampton MDC Board of Directors will be appointed by the City of Council and will be subject to accountability and governance policies attributed to a corporation operating in Canada. The Board of Directors will be required to produce an annual report to City Council with an associated financial audit completed by an independent audit firm.
This site is managed on behalf of the Department of Corporate Project, Policy and Liaison as part of the public consultation process contemplated under O. Reg 599/06 s. 8.