2
The Crown Lands Resumption Ordinance
3.
Powers for the resumption of leased land are
prescribed in the Crown Lands Resumption Ordinance (Chapter
124). The Ordinance defines the legal means of resuming,
and assessing and paying compensation for, land which is
declared to be required for a public purpose by the
Governor-in-Council.
Compensation payable is expressed
in the Ordinance as being based on the open market value
of the land, subject to certain specific provisions.
4.
One of these provisions, section 12(c) of the
Ordinance excludes the award of compensation for value
attributable to any expectancy or possibility which does
not derive from the contractual rights of the lessee as
set out in the lease or any statutory right set out in an
Ordinance. For example, any compensation, which is attri-
butable to the right of renewal under a renewal option in
the lease, is payable under a resumption, because such an
option is binding on Government. But any value attributable
to the expectation that Government might offer an exchange
of land or permission to build is not compensatable,
because the Government.. is not contractually or statutorily
bound to offer an exchange or give permission to build.
This restriction does not generally give rise to any
problems in the resumption of urban building land, because
/the