Item - 2015.ED8.5
Tracking Status
- City Council adopted this item on December 9, 2015 without amendments.
- This item was considered by Economic Development Committee on November 24, 2015 and was adopted with amendments. It will be considered by City Council on December 9, 2015.
ED8.5 - Redesigning the Vacant Commercial and Industrial Tax Relief Program - Activity Update
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
City Council Decision
City Council on December 9 and 10, 2015, adopted the following:
1. City Council request the General Manager, Economic Development and Culture to:
a. establish a working group with community groups, BIAs, other interested non-governmental organizations that are working on innovative initiatives to incubate small business and cultural activity in vacant storefronts, to explore possible strategies and examine new models for the Property Tax Rebate for vacant commercial buildings to encourage community and local economic activity;
b. undertake, in cooperation with other stakeholder groups, analysis of the current utilization of the Property Tax Rebate for Vacant Properties and other research to examine any trends or patterns of use that would help inform the work underway on this policy;
c. differentiate, as appropriate, the small retail class of businesses from larger commercial industrial properties in further work on this policy issue, recognizing the different conditions and needs of these property owners and businesses; and
d. reiterate a request for consideration of a temporary exemption from the current legislative provisions in order to undertake pilot projects in the City of Toronto in further discussions with Provincial officials.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2015/ed/bgrd/backgroundfile-85626.pdf
Communications (Committee)
https://www.toronto.ca/legdocs/mmis/2015/ed/comm/communicationfile-57353.pdf
(November 23, 2015) Letter from Sheri Hebdon, Chair, Danforth East Community Association (DECA) (ED.New.ED8.5.2)
https://www.toronto.ca/legdocs/mmis/2015/ed/comm/communicationfile-57386.pdf
(November 23, 2015) Letter from Haig Baronikian and David Wong, 1853475 Ontario Incorporated (ED.New.ED8.5.3)
https://www.toronto.ca/legdocs/mmis/2015/ed/comm/communicationfile-57388.pdf
(November 24, 2015) Letter from Tina Scherz, Community Economic Development Co-ordinator, Woodgreen (ED.New.ED8.5.4)
https://www.toronto.ca/legdocs/mmis/2015/ed/comm/communicationfile-57393.pdf
Communications (City Council)
https://www.toronto.ca/legdocs/mmis/2015/cc/comm/communicationfile-57559.pdf
Motions (City Council)
ED8.5 - Redesigning the Vacant Commercial and Industrial Tax Relief Program - Activity Update
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
Committee Recommendations
The Economic Development Committee recommends that:
1. City Council request the General Manager, Economic Development and Culture to:
a. establish a working group with community groups, BIAs, other interested non-governmental organizations that are working on innovative initiatives to incubate small business and cultural activity in vacant storefronts, to explore possible strategies and examine new models for the Property Tax Rebate for vacant commercial buildings to encourage community and local economic activity;
b. undertake, in cooperation with other stakeholder groups, analysis of the current utilization of the Property Tax Rebate for Vacant Properties and other research to examine any trends or patterns of use that would help inform the work underway on this policy;
c. differentiate, as appropriate, the small retail class of businesses from larger commercial industrial properties in further work on this policy issue, recognizing the different conditions and needs of these property owners and businesses; and
d. reiterate a request for consideration of a temporary exemption from the current legislative provisions in order to undertake pilot projects in the City of Toronto in further discussions with Provincial officials.
Origin
Summary
Historically in Ontario, commercial and industrial property owners that experience periods when space within their property is vacant have been reimbursed for some of the property taxes billed. The current provincially legislated commercial/industrial vacant property tax rebate program continues this past practice under the Current Value Assessment tax regime. This program was not intended to address the negative impacts on the surrounding businesses and community resulting from poor rental market conditions or provide an incentive to encourage temporary productive uses that would create employment benefiting the property owner, local business area, and community. Provincial consideration is now being given to alter the program to target these issues.
City Council in endorsing its economic growth and job creation strategy in February 2013, Collaborating for Competitiveness, adopted Recommendation C.1.2 directing City staff to request that the Province of Ontario consider amending the legislation governing the Property Tax Rebate for Vacant Commercial and Industrial Buildings (aka Vacant Unit Rebate or VUR) that would permit municipal Councils to establish eligibility criteria and time limits that align with the municipality's economic growth and job creation objectives.
The purpose of this report is to update Council on progress on implementing its direction to examine the possibility of re-designing the VUR to encourage re-use of vacant commercial and industrial buildings, primarily focusing on vacant neighbourhood and street front retail.
Background Information
https://www.toronto.ca/legdocs/mmis/2015/ed/bgrd/backgroundfile-85626.pdf
Communications
https://www.toronto.ca/legdocs/mmis/2015/ed/comm/communicationfile-57353.pdf
(November 23, 2015) Letter from Sheri Hebdon, Chair, Danforth East Community Association (DECA) (ED.New.ED8.5.2)
https://www.toronto.ca/legdocs/mmis/2015/ed/comm/communicationfile-57386.pdf
(November 23, 2015) Letter from Haig Baronikian and David Wong, 1853475 Ontario Incorporated (ED.New.ED8.5.3)
https://www.toronto.ca/legdocs/mmis/2015/ed/comm/communicationfile-57388.pdf
(November 24, 2015) Letter from Tina Scherz, Community Economic Development Co-ordinator, Woodgreen (ED.New.ED8.5.4)
https://www.toronto.ca/legdocs/mmis/2015/ed/comm/communicationfile-57393.pdf
Speakers
Motions
That City Council request the General Manager, Economic Development and Culture to:
a. establish a working group with community groups, BIAs, other interested non-governmental organizations that are working on innovative initiatives to incubate small business and cultural activity in vacant storefronts, to explore possible strategies and examine new models for the Property Tax Rebate for vacant commercial buildings to encourage community and local economic activity;
b. undertake, in cooperation with other stakeholder groups, analysis of the current utilization of the Property Tax Rebate for Vacant Properties and other research to examine any trends or patterns of use that would help inform the work underway on this policy;
c. differentiate, as appropriate, the small retail class of businesses from larger commercial industrial properties in further work on this policy issue, recognizing the different conditions and needs of these property owners and businesses; and
d. reiterate a request for consideration of a temporary exemption from the current legislative provisions in order to undertake pilot projects in the City of Toronto in further discussions with Provincial officials.