The City has received payment of the cancellation price from the Property Owner at 152 Shanley.
From a City of Kitchener communication:
The City of Kitchener is required to follow the regulatory process for tax sales set out in provincial legislation and as a result has no choice but accept payment from the Property Owner, cancelling the tax sale.
In light of this significant payment to the City, staff are hopeful that the Property Owner is more committed to undertaking the necessary work on the property. The City is also hopeful the Property Owner will collaborate with the appropriate professionals to develop the property in a manner that supports the vision statement, which describes preferred land uses, developed through community consultation undertaken by the City on April 18, 2018. We have been advised that the Property Owner has retained an environmental consultant, has a remediation plan in place and that the Property Owner intends to comply with vision statement developed through community consultation.
The City can’t force the redevelopment of a site but it will continue to monitor the condition of the building, take steps under the Building Code Act to address deterioration at the site, enforce property standard issues at the site along with any other bylaws. The City will also monitor the status of the tax account and should the taxes be in arrears for a two-year period, the City will initiate a new tax sale process.
Potential questions with answers:
· I’m interested in developing this property, who should I contact?
o We would recommend that you contact the Property Owner. (Name and contact information are posted on the building)
· Is there anything the City can do to stop the cancellation of the tax sale?
o No, the City of Kitchener is required to follow the regulatory process for tax sales set out in provincial legislation and has no choice but accept payment from the Property Owner.
· Will the City incorporate the costs incurred through the tax sale process as a part of the amount owing?
o Yes, we will include approx. $8,200 in the final cost.
· Will that include costs associated with the community consultation?
o No, the community consultation was not a part of the tax sale process, the City elected to proceed with consultation.
· How will the funds that come in be allocated?
o The funds received will be applied to outstanding taxes and tax sale related-costs.
· How much interest on the amount owing was lost?
o Approx. $800,000
· Is there an impact on taxpayers?
o Consistent with accounting best practices, the City provides for the write-off of interest charges related to contaminated properties in the Allowance for Doubtful accounts.
· Does the City have any penalties in place to encourage property owners to pay their taxes on time?
o Property owners who do not pay their taxes on time incur 15% interest on the amount owing.
· What happens if the property owner doesn’t proceed with developing the property?
o The City can’t force the redevelopment of a site but it will continue to monitor the condition of the building, take steps under the Building Code Act to address deterioration at the site, enforce property standard issues at the site along with any other by-laws.
· What happens if the Property Owner does not pay their taxes going forward?
o The city will monitor the status of the tax account. As a result of more recent changes to the tax sale provisions, should the taxes be in arears for a two-year period, the City will initiate a new tax sale process.
Facts and resources:
· O. Reg. 181/03: MUNICIPAL TAX SALES RULES:
o https://www.ontario.ca/laws/regulation/030181
· Community consultation:
o Concepts from design charrette
The City of Kitchener has to accept the payment as the Property Owner still legally owns the building.
Cancellation price: $448,798.43 of February 28, 2019
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