Item - 2013.CC39.1

City Council on October 8, 9, 10 and 11, 2013, adopted the following:

1.         City Council adopt the recommendations contained in Confidential Attachment 1 to the report (July 9, 2013) from the City Solicitor and the Treasurer, as amended.

2.         City Council direct that Confidential Attachment 1, including all Appendices, to the report (July 9, 2013) from the City Solicitor and the Treasurer, as amended, remain confidential as it contains advice and information that is subject to solicitor-client privilege and pertains to litigation or potential litigation.  City Council authorize the public release of all or a portion of the adopted confidential instructions at the discretion of the City Solicitor.

3.         City Council authorize and direct the appropriate City staff to take the necessary action to give effect to Council's decision.

Confidential Attachment 1, as amended, including all Appendices, to the report (July 9, 2013) from the City Solicitor and the Treasurer remains confidential in its entirety at this time in accordance with the provisions of the City of Toronto Act, 2006, as it contains advice and information that is subject to solicitor-client privilege and pertains to litigation or potential litigation affecting the City of Toronto.  All or a portion of the confidential instructions in Confidential Attachment 1 to the report (July 9, 2013) from the City Solicitor and the Treasurer, as amended, will be made public at the discretion of the City Solicitor.

Confidential Information made public on January 24, 2014

1.         City Council approve the revised settlement proposal with the Toronto Port Authority for Payment-in-lieu of Taxes for Billy Bishop Toronto City Airport for tax years 1999 onward, detailed in Appendix A of the Confidential Attachment to the report (July 9, 2013) from the City Solicitor and Treasurer, and present this offer to the Toronto Port Authority with the following conditions:

a.         That the Toronto Port Authority maintain the confidentiality of the terms of the proposed settlement unless and until it has been approved by the TPA.

b.         In the event the TPA discloses the terms of the proposed settlement prior to the TPA accepting the City's offer, City Council direct City staff to revoke the offer set out in the revised settlement proposal.

2.         a.         City Council request the Province of Ontario to amend Ontario Regulation 282/98 of the Assessment Act to include Billy Bishop Toronto City Airport as a designated airport authority responsible for paying a payment in lieu of taxes to the City based on passenger counts at a rate of $0.94029, effective January 1, 2013.

            b.         City Council authorize the Treasurer to write off payments in lieu of taxes for taxation years 1999 to 2012 (inclusive) for the Billy Bishop Toronto City Airport, in an amount representing the difference between the amount of PILTs requested and the amounts that have been or will be paid for the 1999 to 2012 taxation years, as detailed in Appendix A of the confidential report (July 9, 2013) from the City Solicitor and the Treasurer.

3.         [Remains confidential]

4.         City Council authorize the City Solicitor and other City Staff to take all necessary and appropriate steps, to implement Council's decision.

APPENDIX A:  Revised Settlement Proposal for BBTCA (PILTs)

1.         The City of Toronto and Toronto Port Authority ("the Parties") agree that after receiving approval from their respective decision making authorities, the Parties will jointly approach the provincial government to request that it amend section 45.1 of Ontario Regulation 282/98 in 2013 to include the BBTCA;

2.         The Parties agree that the PILTs paid for the BBTCA commencing in the 2013 tax year will be calculated on a per passenger basis in accordance with the Regulation;

3.         The Parties agree that the TPA will make PILT payments to the City for the BBTCA at a rate of $0.94029 per passenger for the 2013 tax year, and at the prescribed per-passenger rate for any future year;

4.         For the 2013 tax year and subsequent tax years, the passenger count to calculate the BBTCA's PILT will be the total number of enplaned and deplaned passengers reported for the designated airport authority in the Statistics Canada publication entitled “Air Carrier Traffic at Canadian Airports”, as set out in the table entitled “Top 100 Airports Ranked by Enplaned and Deplaned Passengers, Selective Services”,  published during the immediately preceding taxation year;

5.         For the 2013 tax year and subsequent tax years, the TPA agrees that the passenger count the TPA will use for calculating the per passenger PILT will also include connecting passengers at the BBTCA;

6.         As contemplated in subsection 45.1(4) of the Regulation, the Parties agree that for the 2013 tax year the PILT will be based on the 2011 passenger count of 1,845,282 and a PILT of $1,735,100. The "cap" contemplated in the Regulation will commence in 2014 and will apply if the PILT for the tax year exceeds five percent of the immediately preceding tax year;

7.         The Parties agree that the PILTs already paid by the TPA to the City for tax years 1999 to 2012, reflecting a per-passenger rate of $0.80 multiplied by the actual passenger count for that tax year as reported by TPA, are acceptable;

8.         The Parties agree that in the event that either of the decision making authorities rejects the revised settlement proposal, or the provincial government declines to amend section 45.1 of the Regulation, that the Parties may, if they so wish, request that the federal Dispute Advisory Panel hold a hearing to determine the corporation property value of the BBTCA.

[The balance of Confidential Attachment 1 remains confidential]