What is the value of a reserved land?

That is the question the Superior Court considered in the decision Ville de Longueuil v. Tribunal administratif du Québec.

The Court analyzed the decision of the Tribunal administratif du Québec (TAQ) on the assessment of the value of a vacant lot on which a reserve for public purposes had been imposed under the Expropriation Act.

A company acquired a vacant land to build a residential development. One year after the purchase, a land reserve notice was imposed on the land, for a period of two years. Therefore, any construction was prohibited on the land. The notice was then renewed for another two years.

The landowner challenged before the TAQ the value entered on the assessment roll for the property. According to him, its real value is zero, because since the imposition of the land reserve notice, it is impossible to finance the land, sell it or build on it.

According to the TAQ, a vacant land rendered unusable due to a reserve notice is presumed to have a nominal value. To reverse this presumption, the city had to establish proof of a market for an immovable subject to the same restrictions. The TAQ considered that the city of Longueuil did not provide this proof.

The Superior Court upheld the TAQ’s decision.

If you have any questions about expropriation, do not hesitate to contact the Beauregard Avocats team.