Item - 2014.ED30.6

Tracking Status

  • City Council adopted this item on May 6, 2014 without amendments.
  • This item was considered by Economic Development Committee on April 16, 2014 and was adopted with amendments. It will be considered by City Council on May 6, 2014.

ED30.6 - Re-designing the Vacant Commercial and Industrial Tax Relief Program to Stimulate Economic Growth (Collaborating for Competitiveness, Implementation Action 8)

Decision Type:
ACTION
Status:
Adopted
Wards:
All

City Council Decision

City Council on May 6, 7 and 8, 2014, adopted the following:

 

1.         City Council request the City Manager, the Deputy City Manager and Chief Financial Officer and the General Manager, Economic Development and Culture to meet with the appropriate Provincial staff to discuss options, as articulated in the report (March 28, 2014) from the General Manager, Economic Development and Culture, to stimulate economic growth and job creation and enhance local retail and employment areas by amending the legislation and/or regulations governing the Vacant Commercial and Industrial Property Tax Rebate program and report back to the Economic Development Committee in the first quarter of 2015.

 

2.         City Council request the City Manager, the Deputy City Manager and Chief Financial Officer and the General Manager, Economic Development and Culture to consult with commercial and industrial property owners and tenants, Business Improvement Area (BIA) representatives, incubator operators and other affected stakeholders in regard to potential amendments to Provincial legislation and/or regulations and related City policies and/or programs and to include the results of these consultations in the report back to Economic Development Committee referenced in Part 1 above.

 

3.         City Council request the City Clerk to forward a copy of Council's decision to the Ontario Minister of Finance, the Minister of Economic Development, Trade and Employment, and the Minister of Municipal Affairs and Housing, as a basis for a review of the Vacant Commercial / Industrial Property Tax Rebate legislation and regulations.

 

4.         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 further develop new models for the Property Tax Rebate for vacant commercial and industrial buildings that encourage community and local economic activity;

 

b.         undertake 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.         request consideration for 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)

(March 28, 2014) Report and Appendices A and B from the General Manager, Economic Development and Culture on Re-designing the Vacant Commercial and Industrial Tax Relief Program to Stimulate Economic Growth (Collaborating for Competitiveness, Implementation Action 8)
https://www.toronto.ca/legdocs/mmis/2014/ed/bgrd/backgroundfile-68227.pdf

Background Information (City Council)

(April 25, 2014) Supplementary report from the General Manager, Economic Development and Culture on Re-designing the Vacant Commercial and Industrial Tax Relief Program to Stimulate Economic Growth - Supplementary Information on Vacancy Rebate Program (ED30.6a for information)
https://www.toronto.ca/legdocs/mmis/2014/cc/bgrd/backgroundfile-68946.pdf

Communications (Committee)

(April 16, 2014) Submission from Kevin Lee, Executive Director, Scadding Court Community Centre (ED.New.ED30.6.1)
https://www.toronto.ca/legdocs/mmis/2014/ed/comm/communicationfile-46885.pdf

Motions (City Council)

Motion to Adopt Item (Carried)

Vote (Adopt Item) May-07-2014 2:26 PM

Result: Carried Majority Required - ED30.6 - Adopt the item
Total members that voted Yes: 39 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bailão, Michelle Berardinetti, Shelley Carroll, Josh Colle, Gary Crawford, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Mike Del Grande, Sarah Doucette, John Filion, Doug Ford, Mary Fragedakis, Mark Grimes, Norman Kelly, Mike Layton, Chin Lee, Peter Leon, Gloria Lindsay Luby, Giorgio Mammoliti, Josh Matlow, Pam McConnell, Mary-Margaret McMahon, Joe Mihevc, Peter Milczyn, Denzil Minnan-Wong, Ron Moeser, Frances Nunziata (Chair), Cesar Palacio, John Parker, James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, David Shiner, Michael Thompson, Kristyn Wong-Tam
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 6 Members that were absent are Raymond Cho, Frank Di Giorgio, Paula Fletcher, Rob Ford, Karen Stintz, Adam Vaughan

ED30.6 - Re-designing the Vacant Commercial and Industrial Tax Relief Program to Stimulate Economic Growth (Collaborating for Competitiveness, Implementation Action 8)

Decision Type:
ACTION
Status:
Amended
Wards:
All

Committee Recommendations

The Economic Development Committee recommends that:

 

1.         City Council request the City Manager, Deputy City Manager/Chief Financial Officer, and General Manager, Economic Development and Culture to meet with the appropriate Provincial staff to discuss options, as articulated in the report (March 28, 2014) from the General Manager, Economic Development and Culture, to stimulate economic growth and job creation and enhance local retail and employment areas by amending the legislation and/or regulations governing the Vacant Commercial and Industrial Property Tax Rebate program and report back to the Economic Development Committee in the first quarter of 2015.

 

2.         City Council request the City Manager, Deputy City Manager/Chief Financial Officer, and General Manager, Economic Development and Culture to consult with commercial and industrial property owners and tenants, Business Improvement Area representatives, incubator operators and other affected stakeholders in regard to potential amendments to Provincial legislation and/or regulations and related City policies and/or programs and to include the results of these consultations in the report back to Economic Development Committee referenced in Recommendation 1 above.

 

3.         City Council request the City Clerk to forward a copy of this report to the Ontario Minister of Finance, Minister of Economic Development, Trade and Employment, and Minister of Municipal Affairs and Housing, as a basis for a review of the Vacant Commercial / Industrial Property Tax Rebate legislation and regulations.

 

4.         City Council request the General Manager, Economic Development and Culture Division 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 further develop new models for the Property Tax Rebate for vacant commerical and industrial buildings that encourage community and local economic activity;

 

b.         Undertake 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.         Request consideration for 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.

Decision Advice and Other Information

The Economic Development Committee:

 

1.         Requested the General Manager, Economic Development and Culture to submit a report to the May 6, 2014 meeting of City Council on a breakdown of vacancy rebate amounts paid by commercial vs industrial and by geographic area.

 

2.         Invited Mr. Kevin Lee, Executive Director, Scadding Court Community Centre to give a presentation to the Economic Development Committee meeting on June 24, 2014 on businesses out of the box.

Origin

(March 28, 2014) Report from the General Manager, Economic Development and Culture

Summary

At its meeting of February 20th 2013, City Council in endorsing its new economic growth and job creation strategy, 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 that would permit municipal councils to establish graduated vacant unit rebates to induce and incent owners and tenants to meet eligibility criteria that align with the municipalities economic growth and job creation objectives.

 

As part of the general economic churn businesses open, close, expand, contract and relocate.  This ongoing process creates vacant space for periods of time within commercial (including retail) and industrial properties.  Some of these spaces remain vacant for a relatively short period of time as owners seek new tenants, renovate or otherwise upgrade their property.  However some commercial / industrial space remains vacant for extended periods of time with little apparent activity.  Older industrial buildings with lower ceiling heights and short column spans that are no longer desirable for modern manufacturing uses and many retail areas throughout the city have been noticeably impacted by long term vacancies. 

 

In addition to lost revenue to property owners, buildings that remain wholly or partial vacant for long periods of time can, and usually do, have negative impacts on the surrounding business area and community.  Municipalities around the world are implementing creative strategies and programs to bring these spaces back to vibrant economic use.

 

In Toronto, the current provincially legislated commercial / industrial vacant property tax rebate program provides a rebate to owners of eligible vacant buildings, but does not address the negative impacts on the surrounding businesses and community or provide an incentive to encourage temporary productive uses that would create employment benefiting the property owner, local business area, and community.

 

Between 2002 and 2013, the City of Toronto rebated approximately $367 million in property tax revenue ($198 million representing municipal taxes and $169 million in education taxes funded by the province) to owners of vacant commercial / industrial space.  At the same time rebates are provided for vacant space, there is demand for affordable space to support entrepreneurs and emerging small businesses.

 

This report recognizes vacant commercial / industrial buildings as under-utilized assets that have the potential to foster job creation and economic growth; discusses creative approaches to re-purposing these spaces to encourage productive employment that would benefit the property owner, local business area, and community; and seeks City Council approval of a framework to guide discussions between City of Toronto and Province of Ontario staff in regard to potential amendments to current legislation and regulations.

Background Information

(March 28, 2014) Report and Appendices A and B from the General Manager, Economic Development and Culture on Re-designing the Vacant Commercial and Industrial Tax Relief Program to Stimulate Economic Growth (Collaborating for Competitiveness, Implementation Action 8)
https://www.toronto.ca/legdocs/mmis/2014/ed/bgrd/backgroundfile-68227.pdf

Communications

(April 16, 2014) Submission from Kevin Lee, Executive Director, Scadding Court Community Centre (ED.New.ED30.6.1)
https://www.toronto.ca/legdocs/mmis/2014/ed/comm/communicationfile-46885.pdf

Speakers

Gay Stephenson, Co-ordinator, Woodgreen Community Economic Development
Lawrence Mosselson
Kevin Lee, Executive Director, Scadding Court Community Centre (Submission Filed)
Michelle Senayah, Principal, Senayah Designs
Councillor Mary Fragedakis
Councillor Janet Davis

Motions

1 - Motion to Amend Item (Additional) moved by Councillor Michael Thompson (Carried)

That the General Manager, Economic Development and Culture be requested to submit a report to the May 6, 2014 meeting of City Council on a breakdown of vacancy rebate amounts paid by commercial vs industrial and by geographic area.


2 - Motion to Amend Item (Additional) moved by Councillor Michael Thompson (Carried)

That the Economic Development Committee:

 

1.  Request the General Manager, Economic Development and Culture Division 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 further develop new models for the Property Tax Rebate for vacant commerical and industrial buildings that encourage community and local economic activity;

 

b.  Undertake 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;

 

d.  Request consideration for 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.


3 - Motion to Amend Item (Additional) moved by Councillor Chin Lee (Carried)

That Mr. Kevin Lee, Executive Director, Scadding Court Community Centre be invited to give a presentation to the Economic Development Committee meeting on June 24, 2014 on businesses out of the box.


4 - Motion to Adopt Item as Amended moved by Councillor Michael Thompson (Carried)
Source: Toronto City Clerk at www.toronto.ca/council