Item - 2021.GL25.15

The General Government and Licensing Committee recommend that:

1. City Council approve payment of a one-time grant to the Greek Community of Toronto in the amount of approximately $85,217 to reflect what would have been billed for the 2016 and 2017 taxation years if the assessment was adjusted to reflect the correct square footage as well as an amount to offset the total of all interest, penalty and fees applied for 2016 to 2021,  with such grant amount to be funded from the City's 2021 Tax Deficiency Account, subject to the following conditions:

a. the Greek Community of Toronto make payment in full of all outstanding property taxes for the property located at 136 Sorauren Avenue (including all taxes payable on the portions of the property occupied by the commercial tenant) excluding any grants approved by Council; and

 
b. the grant amount be applied directly to the property tax account to offset property taxes payable.

2. City Council deem the grant referred to in Part 1 above to be in the interest of the City.

This report provides information with respect to outstanding property taxes on a property owned by the Greek Community of Toronto, located at 136 Sorauren Avenue.

The Greek Community of Toronto has owned the property since 1961 and the property is exempt from taxation as a place of worship under Section 3(1) of the Assessment Act. In 2018, the Municipal Property Assessment Corporation discovered that a commercial for-profit childcare centre was in operation within a portion of the church building and has been leased from the church since 2006.

The childcare centre is a taxable facility and is therefore subject to taxation at commercial rates.  As a result of the issuance of omitted assessment notices by the Municipal Property Assessment Corporation, the taxable portion of the property has now been billed for property taxes for the 2016-2021 taxation years.  To date, payment has not been made for the taxes owing and as a result, interest/penalty and fees have been applied.