The Treasurer recommends that the:

1.         Individual tax appeal applications made pursuant to section 323 of the City of Toronto Act, 2006 resulting in tax reductions (excluding phase-in/capping amounts) totalling $516,490.62 including reductions in Business Improvement Area charges, as identified in Appendix A, be approved.

2.         Individual tax appeal applications made pursuant to section 325 of the City of Toronto Act, 2006 resulting in tax reductions (excluding phase-in/capping adjustments) totalling $368,062.57 including reductions in Business Improvement Area charges, as identified in Appendix B, be approved.

3.         Appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

This report deals with tax appeal applications made to the Treasurer pursuant to sections 323 and 325 of the City of Toronto Act, 2006 (COTA).  Section 323 permits Council to cancel, reduce or refund taxes in cases when, during the year, a property undergoes changes such as when it is destroyed by fire or demolished, becomes exempt from taxation, or is reclassified due to a change in its use.  Under section 325 of the COTA, taxpayers can request a cancellation, reduction or refund of taxes when an error in the assessment roll is identified which results in an overcharge.

The legislation requires Council to hold a public meeting where applicants may make a submission in defence of their position.  Council has delegated authority to hold such public meetings to the Government Management Committee.

Staff have mailed Notices of Hearing to affected taxpayers advising of the upcoming hearing before Government Management Committee.

The financial impact of approving the individual tax appeal applications (excluding phase-in/capping adjustments), as identified in the attached Appendices A and B, is summarized in Table 1 below: 

Table 1: Tax Appeals Summary

The City’s share of $527,772.07 will be funded from the 2010 Tax Deficiency Account (Non-Program Budget).  The education share of $354,227.91 will be recovered from the province/school boards, and the Business Improvement Area (BIA) reductions of $2,553.21 will be funded from the respective BIA provision. 

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The Treasurer recommends that the:

1.         Apportionment of property taxes in the amounts identified in Appendix A and Appendix B, under the columns entitled “Apportioned Tax” and “Apportioned Phase In/Capping”, be approved.

2.         Appropriate City officials be authorized and directed to take the necessary action to give effect thereto.

This report deals with 29 tax apportionment applications made by the Treasurer or to the Treasurer by an owner of land pursuant to section 322 of the City of Toronto Act, 2006, for the properties listed in Appendices A and B (attached).

The legislation requires Council to hold a public meeting at which the applicants and / or property owners may make representations.  Council has delegated authority to hold such public meetings to the Government Management Committee. 

Staff have mailed Notices of Hearing to affected taxpayers advising of the upcoming hearing before the Government Management Committee.

Appendices A and B identify that approximately $53,592.96 (as at January 7, 2010) in penalty/interest charges has accumulated on the tax accounts pending the initiation of the process to reallocate the taxes.  This amount, and any other interest/penalty that will accumulate on the accounts pending the finalization of the process, will be written off.  Council has granted authority for such write offs to the Director of Revenue Services.  Funding for the write-off of the interest/penalty amount is provided for in the 2010 Tax Penalty Account (Non-Program Budget).

With the exception of the penalty/interest amounts that will be written off, the reallocation of the property taxes from one account to other accounts has no financial impact on the City of Toronto and merely serves to secure the City’s revenues.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The purpose of this report is to seek authority for the City to acquire the property municipally known as 330 Progress Avenue from Sanmina-Sci Systems (Canada) Inc. This property is required by the Toronto Police Service to meet its evidence management space requirements for the next 25 years.

Negotiations with the owner of this property have been ongoing since September 2009. Prior to this report going to Council, the owner will have signed an irrevocable Offer to Sell their property to the City. Proposed terms of the offer are set out in Appendix “A” and confidential Attachments “1”. The terms are considered to be fair and reasonable.

This proposed transaction will result in an expenditure for the purchase price of the property as well as land transfer tax costs, as detailed in confidential Attachment 1.  Closing costs are set out in Appendix “A”.  These expenditures will be funded from the 2010 Approved Capital Budget for Toronto Police Services, Capital Account PL-100068 (Property Evidence Management Unit).

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

In 2008, RioCan PS Inc. purchased a closed lane at the rear of 585 Queen Street West from the City for $1,000,000.00, of which $700,000.00 has been paid to the City to date.  The purpose of this report is: (a) to obtain approval for the City to elect to receive payment of the outstanding balance of $300,000.00 by the conveyance to the City of two store front condominium units, which are valued at $300,000.00, rather than by certified cheque; (b) to obtain approval for the City to enter into a Below-Market Rent Lease Agreement with the Toronto Cultural Advisory Corporation for the use of the condominium units; and (c) to obtain approval for the City to enter into an agreement with the Toronto Cultural Advisory Corporation governing TAC’s mandate to operate the condominium units for artistic purposes.

If City Council approves Recommendation 1, the City will acquire ownership of two storefront condominium units, valued at $300,000, when construction of the development at Queen and Portland has been completed (estimated in mid-2011) rather than receive payment by certified cheque of the outstanding balance of $300,000 owing to the City for the sale of the Lane and, therefore, will forego these proceeds from being taken into the Land Acquisition Reserve Fund as per Council policy.  At the time of the conveyance, the City will be required to return the letter of credit (the “Letter of Credit”) in the amount of $400,000.00 that RioCan delivered to the City pursuant to the terms of the agreement under section 45 of the Planning Act between RioCan and the City (the “Section 45 Agreement”) as security for the payment of the outstanding balance.  If RioCan fails for any reason whatsoever to convey the Condo Units to the City by November 20, 2011, the City will be entitled to draw down on the Letter of Credit in its entirety and to retain the proceeds thereof in satisfaction of RioCan’s obligation to convey the Condo Units to the City.  RioCan is required to pay, on behalf of the City, all land transfer tax which is payable in connection with the conveyance of the Condo Units to the City.

This report also recommends a nominal sum lease of the Condo Units to TAC, who will sublease the Condo Units to grant recipients, at full cost recovery, to further their cultural activities.  The Lease to TAC will require it to take responsibility for all ongoing operating and capital costs, including condominium maintenance fees which are estimated to total $117.64 per month during the first year (subject to inflation going forward), as well as other costs, leasehold improvements and property taxes. TAC has submitted a business case supporting its plan to sublet these spaces to eligible grant recipients and to recover all ongoing costs.  The Lease Agreement with TAC and the agreement to govern TAC’s mandate with respect to the Condo Units would be separate from the City’s existing agreement with the TAC for the administration of arts and culture grants.     

Initial essential leasehold improvements, estimated by TAC to cost $63,274, will be necessary to prepare the Condo Units for occupancy and will be the responsibility of TAC under the Lease Agreement.  However, the business case submitted by TAC contemplates the City providing a grant of up to $75,000 to cover the cost of the initial leasehold improvements.  A Section 37 cash contribution to support the development of non-profit arts and cultural spaces was negotiated as part of a rezoning application in Ward 20 that was recently approved by City Council and could be applied to fund the leasehold improvements in the Condo Units.  As these Section 37 funds have not yet been received by the City, however, no specific allocation or budget for their provision as a grant to TAC can be made at this time.  It is anticipated that this Section 37 funding or another source for the $75,000 will be available by the time the City acquires the Condo Units in 2011.  A report to Council may be required to allocate the funds once such funds are received by the City.

Should the Below-Market Rent Lease Agreement with TAC be terminated for any reason, the City has the right, under the Section 45 Agreement, to require RioCan to buy back the Condo Units at a purchase price of $300,000 multiplied by the corresponding TREB Index.  This provision, which extends for 15 years following the date the City takes ownership, minimizes the risk to the City of accepting the Condo Units and will allow disposition at market value.  During the same fifteen year period, RioCan will have a right of first refusal to purchase the Condo Units from the City in the event that the City receives a bona fide offer to purchase from a third party which the City is prepared to accept, at the same price and on the same terms as contained in the third party’s offer.  It is this buy-back clause that makes it acceptable for the City to acquire the Condo Units, as ongoing ownership of condominium units by the City under any other terms represents an inappropriate financial risk.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.

The General Manager of the Parks, Forestry and Recreation Division recommends that she be delegated authority to enter into an agreement with Toronto Star Newspapers Limited for a three (3) year and six (6) week term commencing February 26, 2010 and expiring on April 9, 2013, with a possible two (2) year extension at the sole option of the General Manager, to distribute Toronto Star newspapers in Parks, Forestry and Recreation facilities, and to coordinate free promotional space in the Toronto Star, all in a form and content satisfactory to the General Manager of Parks, Forestry and Recreation and the City Solicitor.

The purpose of this report is to request Toronto City Council authority to enter into an agreement between the City of Toronto and Toronto Star Newspapers Limited for a term of three (3) years and six (6) weeks with a possible two (2) year extension, commencing February 26, 2010.

This agreement, once approved, will provide for the continued distribution of free Toronto Star newspapers at facilities operated by the Parks, Forestry and Recreation division without interruption.  The agreement will provide the additional benefit of promotional space in the Toronto Star daily newspaper in an effort to increase awareness and usage of Parks, Forestry and Recreation services available to the public.

There are no financial implications resulting from the adoption of this report.

The Deputy City Manager recommends that:

1.         The Director, 311 Toronto provide quarterly reports to Government Management Committee on the progress of the 311 Project Management Office and 311 Contact Centre operations in 2010 and annual reports each year thereafter.

2.         The Director, 311 Toronto post 311 Contact Centre performance measures on the City of Toronto’s Intranet site on a regular basis.

This report is for the information of Government Management Committee as requested during its meeting of January 13, 2010 when considering item GM27.19 “Status of 311 Operations”. Deputy City Manager Sue Corke, was requested to submit a progress report on 311 Project Office operations to the next meeting of the Government Management Committee on February 5, 2010.

There are no financial implications as a result of approval of this report.  The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact statement.

The purpose of this report is to advise that a staff action report, “Jolly Miller Lands – Recovery of Acquisition Costs and Disposition of the Existing Parking Lot” will be on the Supplementary Agenda for the Government Management Committee meeting scheduled for February 5, 2010.

Since 2000, the City has been paying a management fee to GPMI for Professional Services to operate and manage the five City-owned golf courses.  The Professional Services Agreement with GPMI expired on December 31, 2009.  The City needs to continue to provide this service for the general public.

The total potential management fee increase identified in this report (including the optional term) is $699,300.00 including all applicable taxes and charges.  The cost to the City, net of GST and HST Recoveries is $638,316.00.  Funding in the amount of $315,000 net of GST and HST Recoveries is available in the Parks, Forestry and Recreation’s Golf Courses Operating Base Budget.  Should the option to renew be exercised for the 2011 term, funds will be requested in the 2011 Parks, Forestry and Recreation's Golf Courses Operating Base Budget.

In 2008, the five golf courses generated gross revenue of $5.9 million, with expenditures of 4.8 million, which included the management fees to GPMI and ground maintenance costs.  Net revenue to the City was $1.1 million.

In 2009, the five golf courses generated gross revenue of $4.4 million, with expenditures of $4.0 million, which included the management fees to GPMI and ground maintenance costs.  Net revenue to the City was $0.4 million.  The net revenue was impacted by the 39-day labour disruption.

Total impact of this agreement is consistent with the previous agreement.

The Deputy City Manager and Chief Financial Officer has reviewed this report and agrees with the financial impact information.