RPIC Breakfast Speaker Series Surplus strategic assets? Lands Company can help you with the disposal of these assets.

Tara Dinsmore Basil Cavis Tuesday, January 21, 2014 Director, Acquisitions Senior Director, Business Analytics About Canada Lands • Self-financing, commercial, Crown corporation • Receives no funding from government • Return profits to through a dividend • Main role is to optimize the financial and community value of acquired federal assets • Also holds and manages certain special purpose properties such as the CN Tower, and Old Port of Montréal • Began operations in 1995 Corporate Structure How We Do It • Extensive consultations with municipalities, stakeholders and the public • Conduct research into market demand and community desires • Partner with the private sector • Engage the help of expert resources • Create projects that are financially viable, enhance communities and create a lasting legacy Our People

• Entrepreneurial culture

• Real estate, financial, business, project management, and tourism expertise

• Active from coast to coast in over 18 municipalities Lines of Business

• Commercial and residential real estate development – Garrison Village (commercial), Currie Barracks (commercial/residential), Glenlyon Business Park (build-to-suit) • Property Management – Intercontinental Hotel and Metro Convention Centre (sold), Calgary Farmers Market, offices, warehouses, residential rental programs • Tourism Operations – CN Tower, Rogers centre (land lease), Ripley’s Aquarium (land lease), Old Commercial and Residential Real Estate Development

Currie Barracks, Calgary, AB

Garrison Crossing, Chilliwack, BC Village at Griesbach, Edmonton, AB

Glenlyon Business Park, Burnaby, BC Property Management and Tourism Operations

Canada’s National Tower Ripley’s Aquarium of Canada

Centre des Sciences Montréal Sports Centre Edge Walk Our Results

• $7.2 billion in private sector stimulated development expenditures • $1 billion to the Government of Canada as payment for properties, elimination of carrying costs, payment of taxes and declarations of dividends. • $8.6 million spent by Canada Lands on the creation of legacy projects • 209 acres of public space created including parks, playgrounds and soccer fields Canada Lands Acquisition Process Acquisition Process

• Property declared surplus to Custodian’s program requirements • Surplus property classified as strategic by Custodian with Canada Lands input • Surplus property endorsed as strategic by the ADM Steering Committee on Real Property

Entrance photo and aerial of Jean-Charles Chapais Farm Acquisition Process (cont’d)

• Custodian undertakes disposal due diligence; interest assessment; independent third party appraisal obtained through PWGSC • Canada Lands prepares Acquisition Business Plan based on a comprehensive development proforma over the life of the project • Canada Lands / Custodian negotiate sale price and terms / conditions of sale

Aerial of Booth Street Northwest and Central Quadrants Acquisition Process (cont’d)

• Custodian seeks Treasury Board approval to sell the property to Canada Lands (as required) • Canada Lands obtains its necessary approvals (President/Board) • Canada Lands/Custodian finalize Agreement of Purchase and Sale; Promissory Note; other closing documents as required • Transfer of title from Custodian to Canada Lands • Timeline for acquisition – 5 to 7 years (and sometimes longer)

Aerial of Jericho, , BC Acquisition Process – Canada Lands Inputs • Strategic Criteria – the size or value of the property is significant enough to affect local markets negatively – the value of the property can be increased significantly – a partnership with another level of government, the private sector or other party offers the best mechanism to realize value – sensitive policy issues exist • Assessment of Property – Input into Strategic Overview Document • Canada Lands Acquisition Business Plan – Due diligence – Proposed sale price – Enhanced value • Agreement of Purchase and Sale/Promissory Note Acquisition Business Plan • Background • Business Environment • Strategic Considerations – Federal Considerations – Development Considerations • Development Concept • Risk Analysis • Financial Analysis • Recommendation Canada Lands Typical Development Process Development Process

• Interim Site Management: – Environmental Remediation – Demolition – Site Maintenance – Security – Utilities – Property Taxes – Community Relations Demolition at 800 Montreal Road, Ottawa, ON • Preparation of Development Strategy – Based upon strategic Board directions • Engage Multi-Disciplinary Team • Prepare or Update Technical Studies • Consultation with Stakeholders, Communities, and the General Public Development Process (cont`d)

Multi-Disciplinary Consultant Teams (as required) • Public Consultation • Land Use Planning • Legal • Survey • Real Estate Market Analysis • Urban Design • Landscape Architecture - Arborist • Ecology • Archaeology • Heritage Conservation and Commemoration • Engineering — Civil — Geotechnical — Acoustical — Transportation — Electrical — Site Contamination and Environmental Remediation — Environmental • Sustainability, LEED, Energy • Marketing and Branding Development Process (cont`d)

Technical Studies (as required) • Population and Economic Growth Forecasts • Real Estate Market Analysis and Economic Feasibility • Environmental Studies – Species at Risk – Tree Inventories and Conservation Plans – Environmental Site Assessments (soil and groundwater) • Archaeological and Heritage Resource Assessments • Engineering – Soil, Geotechnical, and Hydrological Reports – Site Servicing and Infrastructure Studies (Stormwater, Sanitary Sewer, and Water) – Transportation Studies and Traffic Impact Assessments – Acoustical Studies • Community Needs Assessments • Urban Design Guidelines Development Process (cont`d)

• Consider and Implement Interim Uses – Parking – Short term leases • Municipal Approvals (as required) – Official Plan Amendments – Secondary Plans – Other municipal policy plans or studies – Rezoning – Draft Plan of Subdivision – Severances – Site Plan approvals – Detailed Engineering Designs – Development conditions, agreements, and development charges Alternative presented at Rockcliffe public consultation • Establish Architectural Control Guidelines Development Process (cont`d)

• Construction of Site Services – Prepare technical reports/drawings/tender documents – Contractor(s) selection through Request for Pricing/Request for Proposal – Construction of infrastructure including roadways, site services, parks • Sales and Marketing Program – Determine and finalize sales and marketing strategy – Retain Real Estate Broker (if needed) – Prepare sales and marketing material – Issue RFQ/RFP to development community/private sector – Execute Agreements – Sale Closing Pre-loading and compacting at Deerfield Village • Create projects that are financially viable, enhance communities and create a lasting legacy Development Process (cont`d) Consultation with stakeholders, communities, and the public

Ideas Fair Workshop & Open House Public Advisory Group Meetings Real Estate Development Successes Garrison Crossing, Chilliwack Glenlyon Business Park, Burnaby Village at Griesbach, Edmonton Currie Barracks, Calgary Rockcliffe Lands, Ottawa Les Bassins du Nouveau Havre, Montréal Pleasantville, St John’s