Tax Arrears and Brownfield CIP Answers | Ward 2 Guelph: The Deuce

On Monday night, November 5, 2012, during the presentation of the Brownfields CIP Update at the Planning Council meeting, questions arose regarding the City?s approach to tax arrears and grant applications. Two issues for Finance and Enterprise were raised:

1. Are properties in tax arrears eligible for grants?

What the CIP states is:

m) Except for the Environmental Study Grant Program, outstanding work orders, and/or orders or requests to comply, and/or other charges from the City (including tax arrears) must be addressed to the City?s satisfaction prior to grant and/or tax assistance payment.

In discussing with Finance staff, ?being satisfied? would mean one of three things:

1. Payment in full at time of application
2. Ability to enter into a suitable payment arrangement for payment in full prior to any grant money being issued (Entering into payment plans up to 24 months is a delegated authority)
3. Council has authority to cancel taxes under Municipal Act Section 365(1) as ?unduly burdensome? which would require a by-law (not a delegated authority). Any arrangement or cancellation should be offset from potential grant amounts.

So, while we want to hear from sites that are financially challenged and understand what is potentially stalling a site?s activation, if it is indeed taxes, then in order for a grant to proceed, the tax arrears situation has to be addressed. We don?t anticipate situations where defaulted sites don?t address taxes through one of the above mechanisms.

2. If the City receives an application from for a property from an owner that is known to have arrears on other properties, are we entertaining those requests?

The simple tax answer is yes ? because properties do not connect, tax issues do not connect.

However, we are going to examine the possibility that the outstanding taxes on other properties could be realized before any grant money is issued and that this could form part of the City?s form of agreement on the major grant programs.

Our current form of TIBG agreement already requires the developer to confirm tax status with the City on an annual basis. We will review this mechanism and improve future agreements with Legal and Finance staff to capture more broad disclosures if possible.

I?d like to stress that the Brownfield CIP did not change the City?s policies or regulations on tax collection. These are practices and powers outside of the Community Improvement Plan framework under the Planning Act and therefore are not part of the CIP approved by Council Monday night. Staff

Source: http://ward2guelph.wordpress.com/2012/11/15/tax-arrears-and-brownfield-cip-answers/

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