A copy of the Recreational Lease Document can be obtained for a small fee by contacting the office.
Designation / Leasing
WHAT is a designation?
When a First Nation wants to lease out reserve land, the Indian Act requires the land to be designated for leasing. A designation identifies an area of land for a certain use or purpose (i.e. leasing) and for a certain period.
A designation needs to include these important points:
- Term (number of years)
- Purpose (what the designation is for)
- Description (area of land)
- Any additional conditions required by the First Nation
WHAT is a lease?
A lease is a legal agreement between the Federal Crown and the lessee (the person or company who has use of the land). The lease grants exclusive use of the land to the lessee.
These are some common types of leases:
- Commercial (office building, cottage rentals shopping center)
- Recreational (personal cottage)
- Oil and gas exploitation
A lease needs to include these important points
- term (cannot be longer than the term of the designation)
- purpose (what the land can be used for) land description (must be within the First Nations Territory) designation area)
- rent (sum of money to be paid for using the land) rent review
- The lessee should pay enough rent to ensure a fair price for use of the land. Determination of fair market rent is based on an appraisal.
WHEN land is designated, does it lose reserve status?
No, the land retains reserve status. The lessee is given use of the land for the term of the lease only. The land is designated for a certain period and the term of the lease cannot be longer than the term of the designation. If the lessee wants to lease the land again, and the term of the designation is over, the land will need to be designated again. This requires another designation vote.
Need More Information?
If you would like more information on a proposed designation contact: your Chief and Council at the First Nation Office or the Indian Affairs and Northern Development office nearest you