Item - 2019.GL7.6

The General Government and Licensing Committee recommends that:

1.  City Council approve payment of a one-time grant to Crow's Theatre in the amount of approximately $71,143.62 (such amount to be calculated in an amount equivalent to the property taxes, interest, and fees attributable to the 2016 taxation year for both 345 and 347 Carlaw Avenue for the portions of the properties that are occupied by the theatre and ancillary uses that are owing at the time of City Council's decision on this matter), with the grant amount to be funded from the City of Toronto's 2019 Tax Deficiency Account, subject to the following conditions:

a.  Crow's Theatre make payment in full of all outstanding property taxes, interest, penalties, and fees totalling approximately $56,945.55 as at July 31, 2019 for the properties located at 345 and 347 Carlaw Avenue that are attributable to the portion of the property at 345 Carlaw Avenue that is occupied by a restaurant and the new account fee levied against 347 Carlaw Avenue that remains payable; and

b.  the grant amount be applied directly to the property tax accounts to offset property taxes and other amounts payable.

2.  City Council deem the one-time grant to Crow's Theatre for the properties located at 345 and 347 Carlaw Avenue, as outlined in Recommendation 1, to be in the interest of the City of Toronto.

This report provides information with respect to outstanding taxes for Crow's Theatre located at 345 and 347 Carlaw Avenue.

In 2016, Crow's Theatre, through a collaboration with its lead sponsor, Streetcar, purchased two adjoining properties (345-347 Carlaw Avenue) at the northeast corner of Dundas Street East and Carlaw Avenue. Following a period of construction, Crow's Theatre opened its doors to the public in January 2017. Section 3 of the Assessment Act provides for a property tax exemption for small theatres for which Crow's Theatre is eligible since its opening, however, the Municipal Property Assessment Corporation (MPAC) has advised that the property tax exemption does not apply during the period of construction, as it was not being used as a theatre during this time.

Crow's Theatre was under the assumption that the exemption for the theatre would also apply during the time that these properties were under construction. They are in a difficult position for the 2016 taxation year, as these arrears are causing hardship and this situation may jeopardize their financial viability. Crow's Theatre has been in contact with their local Ward Councillor, MPAC, City staff from Economic Development and Culture as well as Revenue Services requesting financial relief for these taxes which remain unpaid.

This report provides a summary of Crow's Theatre's request and the issues and options available to Council, should the decision be made to address this request.