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Last Updated: October 8th, 20224.3 min read

Property Management Agreement

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Information slide with a picture of a wheat field to depict the Property Management Agreement.

Project Scope

Quick Overview

The Property Management Agreement project was designed to:

  • Generate a revenue source for the Lac du Bonnet CDC whereby the CDC will earn revenue from leasing the properties.

  • Generate additional revenue for the RM of Lac du Bonnet, whereby the RM will receive property tax revenue from each property leased.

  • Organize and maintain an inventory of RM of Lac du Bonnet owned properties suitable for recreational, forage, and cropping leases and generate interest in leasing the properties.

Key Priorities of Focus

This project focuses on three of the CDC’s Key Priorities.

Marketing & Branding

Tourism Development

Business Development

Sustainability & Operations

2022

August

Aerial view of a piece of property with tress and roads.

Creating an Inventory of Properties

Once the Real Estate Services Division Lease Agreement was ready for use, the Lac du Bonnet CDC began creating an inventory of the assigned properties. During this initial inventory, the Lac du Bonnet CDC created Property Profiles for each property available for lease. The property profile includes location information, satellite image and inspection notes, and other essential information about the properties.

The following steps of this project are to conduct site visits to each of the properties, which are expected to be completed by October 31, 2022. Once the site visits are complete, the Lac du Bonnet CDC will provide the Lease Inventory information on its website as part of the marketing and attraction process to lease available land.

2022

July

Close up of a woman's hand signing a contract depicting the Property Management Agreement.

The CDC Created a New Lease Agreement

The Lac du Bonnet CDC worked to develop an equitable and standard Lease Agreement that would be used for any Lease Agreements it entered into with clients. During this process, the Lac du Bonnet CDC conducted research and had conversations with other Municipalities and Government Departments that Lease land.

The Real Estate Services Division Lease Agreement, developed by the Lac du Bonnet CDC, was built using the Manitoba Crown Lands Lease Agreement as a base. During this development phase, the CDC also put standardized Lease Amounts based on use into place.

Lease agreements would be based on a percentage of the most recent Assessment Value as follows:

  1. Recreational Use: 1%
  2. Forage Use: 1.5%
  3. Cropping Use: 2%

The Draft Agreement was reviewed by the Rural Municipality of Lac du Bonnet and its Legal Department, and the Council passed a Resolution to approve the Real Estate Services Division Lease Agreement on July 12, 2022.

2022

March

A field with big round bales of wheat depicting the Property Management Agreements.

Project Start

In March, the Lac du Bonnet CDC signed a Property Management Agreement with the Rural Municipality of Lac du Bonnet. The Agreement would allow the Lac du Bonnet CDC to act as an agent to lease RM of Lac du Bonnet owned properties viable for recreational, forage, and cropping leases.

Under the Agreement, the Manager (Lac du Bonnet CDC) shall have the authority to perform the following services and shall perform such services as may be necessary from time to time during the terms of the Agreement:

  1. to provide competent personnel to manage, lease, and operate the Property as would a reasonable and prudent owner of Property comparable to the Property;
  2. to arrange for such repairs as may be necessary to maintain the Property in a state of repair suitable for Property of this type generally;
  3. to offer for lease and lease the Properties as they become available for leasing at the then-current fair market value to the first available tenants who reasonably appear to be responsible parties and financially able to make the requisite payments;
  4. to negotiate on such terms and conditions as the Manager considers appropriate, the renewal and termination of any leases;
  5. to collect all Gross Revenues from the Properties; to commence and maintain actions or proceedings to collect all revenue or to eject tenants and recover possession of the Property where necessary and advisable; to settle and compromise any actions and proceedings taken by the Manager on behalf of the Owner or by the tenant against the Owner;
  6. to retain and instruct professionals and experts where their services are considered necessary to assist the Manager in performing its services in the interests of the Owner;
  7. to give any notices to tenants required under the terms of any lease; to pay any interest on prepaid rents or deposits as required from time to time under the laws of the Province of Manitoba;
  8. to arrange for the necessary fire and liability insurance on the Properties;
  9. to arrange for all repairs and replacements as may be necessary or advisable for the efficient operation of the Properties or to assist in its leasing, including, without restricting the generality of the foregoing, any repairs necessary to comply with any statute, regulation or order of any authority having jurisdiction over the Property; and
  10. to have the authority to render such services as are exercised by the property managers of the properties of the class and type comparable to the Properties.

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Published On: March 5th, 2022Categories: CDC Key Projects & PrioritiesTags:

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