Ottawa is preparing to transfer the historic Kingston Penitentiary to the federal government's real estate company this fall, clearing the way for the potential sale or redevelopment of the prime Lake Ontario waterfront property 13 years after the prison closed.A March 17 Correctional Service of Canada Transition Binder says the former maximum-security prison is expected to be handed to Canada Lands Company by fall 2026."The transfer of the Penitentiary to the Canada Lands Company is scheduled for completion by Fall 2026," said the memo."Under its mandate, the Correctional Service will manage the disposal process which may include a public solicitation or tender process."Blacklock's Reporter said the federal government continues to incur costs for the unused prison, including $393,000 annually in payments in lieu of municipal property taxes."Canada Lands Company, the federal government's strategic disposal agent, remains engaged and is preparing for a handover of the site," said the memo.The City of Kingston has also expressed interest in taking control of the property.According to the briefing document, municipal officials have developed a business plan and are considering acquiring the former prison through a nominal sale potentially worth as little as $1. Such an arrangement would require Treasury Board approval.Kingston Penitentiary opened in 1835 and operated for 178 years before closing in 2013.The site has remained partially active since its closure. Beginning in 2021, the former prison has been used for film productions and public tours, with admission priced at $37."These activities have helped keep the site active and accessible while broader federal disposal processes continue to advance," the memo said..Ottawa declared the property surplus as part of a 2024 initiative launched by former prime minister Justin Trudeau to identify federal land and buildings that could potentially be used for housing."This is an ambitious plan that meets the moment," Trudeau told reporters when announcing the program. "Anyone who says we don't need to put everything on the table right now is not listening."Trudeau said governments across the country controlled surplus, vacant and underused properties that could potentially accommodate new housing."There is great potential to build more housing," he said.Ottawa pledged at the time to use public lands to help facilitate construction of 250,000 new homes by 2031.However, subsequent federal records showed many of the properties identified as surplus were unsuitable for conversion to housing, including Kingston Penitentiary.Other properties appearing in a 2024 Inquiry Of Ministry included Department of Fisheries boat sheds, a 2,200-square-foot Agriculture Department cattle barn in Brandon, Man., and a former Department of National Defence firing range in Saint-Basile-le-Grand, Que.The list also included an empty property near a remote Coast Guard lighthouse in Gabarus, N.S., and undeveloped federal land near the Goose Bay Airport landing strip in Newfoundland and Labrador.