hide/show menu
Return to Table of Contents | Print | Version fran├žaise | Close Window

Community Delegations
Matters Arising From the Planning Committee
Matters Arising from Community Services Committee
Matters Arising from Operations Committee
Matters Arising from Finance and Administration Committee
Minutes
Tenders and Requests for Proposals
Routine Management Reports
Managers' Reports
By-Laws
Motions
Meeting Quick Pick

Request for Decision

Write-off of Property Taxes at 1014 Highway 17 East in the City of Greater Sudbury



Presented To: City Council
Presented: Tuesday, Oct 08, 2013
Report Date: Tuesday, Oct 01, 2013
Type: Managers' Reports



show/hide decisions
Decisions

Report dated October 1, 2013 from the Chief Financial Officer/City Treasurer regarding Write-off of Property Taxes at 1014 Highway 17 East in the City of Greater Sudbury.

 

The following motion was presented:

 

CC2013-314 Cimino/Berthiaume: THAT the City of Greater Sudbury write off property tax arrears at 1014 Highway 17 East in the amount of $94,413.46 in accordance with Section 354 of the Municipal Act which amount has been allowed for in the City's allowance for doubtful accounts and will have no impact on the 2013 budget.  

CARRIED

 


Signed By

Report Prepared By
Tony Derro
Manager of Taxation
Digitally Signed Sep 24, 13

Recommended by the Department
Lorella Hayes
Chief Financial Officer/City Treasurer
Digitally Signed Oct 1, 13

Recommended by the C.A.O.
Doug Nadorozny
Chief Administrative Officer
Digitally Signed Oct 1, 13

Resolution

That the City of Greater Sudbury write off property tax arrears at 1014 Highway 17 East in the amount of $94,413.46 in accordance with Section 354 of the Municipal Act. This amount has been allowed for in the City's allowance for doubtful accounts and will have no impact on the 2013 budget.

Purpose

The purpose of this report is to seek direction from City Council regarding the property tax arrears at 1014 Hwy 17 East in the City of Greater Sudbury. 

Background

The subject property is a former gas station measuring approximately one acre in size and is Zoned C-2 General Commercial.  The property has a long history of property tax arrears and has been abandoned by the owner.  On September 27, 2012, the property was part of a public tax sale under the authority of the Municipal Act and no bids were received.

To date, the property tax arrears remain as follows:

Taxes $51,801.48
Penalty/Interest $42,611.98
Total $94,413.46

The amount of $94,413.46 has been allowed for in the City's allowance for doubtful accounts.

New Developments

The property owner has agreed to transfer the property to a proposed purchaser in return for consideration of $1,000.00 with the cost of property transfer to be borne by the purchaser.  

 

The purchaser has agreed to accept the transfer of title to the property, conditional upon the City of Greater Sudbury accepting payment in the amount of $5,000.00 towards the property taxes and writing off the remaining balance.  In return, the purchaser intends to conduct an enviromental clean up of the property and provide a letter of credit in the amount of $50,000.00 to the City as a guarantee the property will be remediated. The letter of credit will be released when the remediation has been completed to an acceptable standard.   

City Council's authority to write off the property taxes can be found in Section 354 of the Municipal Act, an excerpt of which states as follows:

2.  The treasurer of a local municipality shall remove unpaid taxes from the tax roll if,
(a) The council of the local municipality, on the recommendation of the treasurer, writes off the taxes as uncollectible;

As well, Section 354 (3) reads:

A local municipality may only write off taxes under clause (2) (a) after an unsuccessful tax sale under Part XI and may at that point write off the taxes whether or not the property vests in the municipality under that part.  

Recommendation

Finance staff is recommending that City Council allow this proposal to go forward and once the conditions of the transaction are met, Finance staff will write off the property taxes.