This project began in 2019. A report was presented to Council acknowledging that the Township has struggled with absentee landowners, land-banking, and owners holding onto land with limited improvements or maintenance. Select parcels of land in Dungannon have been vacant and underutilized for far too long.  The private residential market has incrementally constructed on vacant lots; however, many lots still existed. 

To promote development in the existing urban areas of the Township, it was becoming apparent that the past method of waiting for the market to choose to develop on these lands has only been marginally successful. This report was initiated by a 2019 meeting of Sustainable Huron, where a development tool was highlighted as a means of initiating controlled land disposition with the intention of initiating development to address the significant need for attainable (not “affordable” – which is considered subsidized) housing in Huron County. 

In 2019, the Township owned 13 lots in the village of Dungannon, 6 of which were ready for sale with minimal investment necessary (the water connections existed). The idea was presented where the Township would issue a Expression of Interest to developers who could develop property in a way Council determines. A purchase and sale agreement would be entered into that would be conditional on the accepted proposal.  Should the development not occur within a certain time frame, Council could purchase back that land at the same price it was sold, regardless of how much development had taken place. 

The Report to Council highlighted that Municipal property should be sold with the intention of immediate development. Strategically controlling land dispositions ensure that development happens in a timely manner and could encourage the ‘right kind’ of development for the area in question. By taking on this approach, the goal would be to inspire the public and development community to see the opportunities in such places as Dungannon. The Township issued an expression of interest, and Sommer Brothers responded. 

As a result, staff recommended the sale of select municipal properties be made with controlled land disposition agreements. If the initial projects under these agreements prove successful, it could lead to strategically using additional lots for future controlled land dispositions. This approach allows the municipality to oversee the use of the land even after it's sold, ensuring that it aligns with broader planning goals and community needs.

In January 2020, Council directed staff to apply for the Huron County SLED funding to assist in the preparation of the sale of the lots to a developer, which was successful. The funding assisted in the procurement of a nitrate/hydrogeological study, in addition to covering any engineering, legal or surveying needed to determine what the land can support in terms of development. COVID slowed the process from here. 

In 2021, ACW entered a Memorandum of Understanding with Sommer Brothers, articulating that Sommer Brothers would bring forward a proposal of constructing attainable housing that has passive components with the intention that they would enter into a Conditional Purchase and Sale agreement with the Township. 

In the same year, ACW successfully applied to the SLED fund, on behalf of Sommer Brothers, to assist in obtaining a Feasibility Study that would include the purchase of pre-designed Passive House plans. Sommer Brothers shared their plan with Council, and they successfully entered into an Agreement of Purchase and Sale with the Township in the fall of 2021 to purchase 2 lots (originally three that the Township merged and re-configured to accommodate current set-back requirements).