Tax Arrears Extension Agreement for 299 Dean Avenue Roll #

Transcription

1 ~Oshawa To: Finance Committee From: Nicole Pincombe Director of Financerrreasurer Subject: 1.0 Report Item: Date of Report: FIN March 13, 2014 File: Date of Meeting: C-4202 March 17, Tax Arrears Extension Agreement for 299 Dean Avenue Roll # PUBLIC REPORT PURPOSE The purpose of th is report is to request that the Finance Committee pass a by-law authorizing a tax arrea rs e xtension agreement extending t he time in whi ch the cancellatio n price fo r 299 Dean Avenue (Roll Number ) is to be paid after the registration of a tax arrears certificate. 2.0 RECOMMENDATION It is recommended: That the Finance Committee pass a by-law authorizing the City to enter into a ta x arrears extensio n agreement as outlined in Report FIN , "Tax Arrears Extension Agreement for 299 Dean Avenue Roll Number " exte ndi ng th e time for the payment of t he cance llation price for 299 Dean Avenue and authorizing t he Chair of t he Finance Committee and the Clerk to execute said by-law. 3.0 EXECUTIVE SUMMARY The lands municipally known as 299 Dean Avenue (t he "Property") are owned by Ontario Inc. (the "Owner"). The current assessed owner has failed to pay the taxes. The Property is in tax arrears of $95, as at March 1, A group of investors, represe nted by solicitor Jeffery Schwartz of Schwartz and Schwa rtz Professional Corporation in Toronto, hold a mortgage on 299 Dean Avenue and made a request on March 3, 2014 to enter into a ta x arrears extension agreement with the City. As mortgagees, they are authorized by section 378(1) of t he Municipal Act, 2001 to enter into extension agreements with the municipality prior to t he end of the one-year period fo llowing the reg istration of the tax arrea rs certif icate, whic h in th is case is March 20,

2 Repo rt t o t he Finance Commi ttee (Continued) -2- Item FIN Meet ing Date: March 17, 2014 As the cance llation price is in excess of $25,000, it is necessary for th is matter to be referred to the Finance Committee. The impend ing one-year anniversary of the reg istrat ion of t he tax arrears certificate also makes the passing of t he required by-law and execut ion of the extensio n agreement time sensitive. 4.0 INPUT FROM OTHER SOURCES Lega l Services has reviewed the by-law and the agreements. 5.0 ANALYSIS Section 378 of t he Mun icipal Act R.S.O 2001 authorizes the City to authorize a tax arrears ext ension ag reement wit h the Owner, the spouse of the Owner, a mo rtgagee or a te nant in occupat ion of the Property extending t he period of t ime in which th e cancellation price is to be paid. Section 378 fu rt her provides that t he C ity authorize such an agreement thro ugh a By law passed (Attachment 1) after the reg istration of the tax arrea rs certificate and before the end of the one-year period following t he date of the registrat ion of t he tax arrears certificate. With respect to t he Property, the one-year period ends on March 20, As the ca ncellatio n price is in excess of $25,000 Section 74 of t he City's Delegation By-l aw as amended, permits the City Treas urer to refer t he application to th e Finance Comm ittee, wh ich is delegated aut hority to pass a By-law authorizing an extens ion agreeme nt. Once t he By-law is passed, t he Treasu rer may execute the agreement on beh alf of the C ity. By extending the ti me to pay the cancellat ion price of $95,230.66, wh ich includes outstanding taxes, late payment charges and adm inistration fees, t he Owner may retain ownership of t he Property. T!le tax arrears extension agreement prop osed by the City requires t he mortgagees to make month ly payments toward the cance llation price and to pay t he 2014 billed tax installments as they become due. 6.0 FINANCIA L IMPLICATIONS As the taxes are secured liens on the property and are f ully recoverabl e t here is no fina ncial impact to t he C ity with app roving a Tax Extension Agreement. 2

3 Report to the Finance Item FIN Committee (Continued) Meeting Date: March 17, RESPONSE TO THE OSHAWA STRATEG IC PLAN This report meets the Oshawa Strategic Plan goa l of Accountable Leadershi p by ensu ring respect, responsive ness and transparency. le Pincombe irector of Finance/Treasu rer Attachments 3

4 Attachment 1 to Report FIN ~Oshawa By-Law of The Corporation of the City of Oshawa being a by-law to autho rize a tax arrears extension agreement w it h th e mortgagees in occ upati on of t he property mu nicipa lly know n as 299 Dean Avenue in t he City of Oshawa w ith respect to that property. WHEREAS Ontario Inc. (the "Owne r") owns the property munici pally known as 299 Dean Ave nue in the City of Oshawa a nd lega lly described as Part of Block D and Part of Montgomery Street (formerly Haig Street) (closed by By-law 4279, lnst. No. OS ) Plan 258, Pa rts 1, 2, 3, 4, 5, 6, 7 40R22572, Oshawa, Regi onal Municipality of Durham, S/T easement over Pt Montg omery Street (forme rly Haig Street) (close d by By-law 4279 lnst. No. OS134113) Pl an 258, Pt 1 40R22572 as in Exp. Plan 228, SIT easeme nt over Pt of Blk D and Pt of Montgomery Street (formerly Haig Street) (closed by By-law 4279 lnst. No. OS ) Plan 258, Pts 1, 2, 3, 4, 5, 6, 7 40R22572 as in DR53888, in the City of Oshawa Reg ional Municipality of Durham (the "Property"). AND WHEREAS the mortgagees, namely Sa lvatore Galati, Rose Marino, Lucy Teti, Cathe rine LaMa lfa-gu ido, Dav id Blustein, Trustee, Todd Stei n, Shariff Tad ross, Ontario Lim ited, Joe Petronaci a nd Maria Chiesa, are in occu pat ion of th e Property. AND WHEREAS t here are arrea rs of taxes in respect of the Property in th e amount of $95, as at March 1, and a tax arrears certificate was registe re d in the Land Reg istry Office on Ma rch 20, AND WHEREAS under secti on 378 of th e Municipal Act, 2001, S.O , c. 25, a municipal ity may by a by-law passed after th e reg istration of the tax arrears certif icate, authorize an extension agreement to be entered into by the mun icipa lity with the Owner, the spouse of the Owner, a mortgagee or a tenant in occupation of the Property in ord er to extend the pe riod of time within wh ich the cancellation price is to be paid

5 Attachment 1 to Report FIN AND WHEREAS paragraph 74 of Schedule "A" to Delegation By-law , as amended, delegates to the Finance Committee the authority to pass a by-law pursuant to section 378 of the Municipal Act, 2001 and delegates to the City Treasurer the auth ority to execute t he extension agreement on be half of the City. NOW THEREFORE, the Finance Comm ittee of The Corpo ration of the C ity of Oshawa hereby enacts as follows: 1. The Corporation of the City of Oshawa is authorized to enter into a tax arrears extension agreement with Salvatore Galati, Rose Marino, Lucy Teti, Catherine LaMalfa-Guido, David Blustein, Trustee, Todd Stein, Shariff Tadross, Ontario Limited, Joe Petronaci and Maria Chiesa, the mortgagees in occupation of the property mun icipa lly known as 299 Dean Avenue and legally described as Part of Block D and Part of Montgo mery Street (f ormerly Haig Street) (c losed by By-law 4279, lnst. No. OS ) Plan 258, Parts 1, 2, 3, 4, 5, 6, 7 40R22572, Oshawa, Regiona l Municipality of Durham, S!T easement over Pt Montgomery Street (formerly Haig St reet) (closed by By-law 4279 lnst. No. OS134113) Plan 258, Pt 1 40R22572 as in Exp. Plan 228, SfT easement over Pt of Blk D and Pt of Montgomery Street (formerly Haig Street) (closed by By-law 4279 lnst. No. OS134113) Plan 258, Pts 1, 2, 3, 4, 5, 6, 7 40R22572 as in DR53888, in the City of Oshawa Regiona l Municipality of Durham to extend the time period with in which the cancellation price payab le on the property is to be pa id by October 1, This By-law is effective e.n t he date of its passi ng. By-law passed this 1 ylh day of March, Chai r, Finance Committee City Cle rk