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Staff Report
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Report To: General Government Committee
Date of Meeting: May 31, 2021 Report Number: FSD-029-21
Submitted By: Trevor Pinn, Director of Financial Services/Treasurer
Reviewed By: Andrew C. Allison, CAO By-law Number:
File Number: Resolution#: GG-382-21
Report Subject: Unsuccessful Tax Sale
Recommendation:
1. That Report FSD-029-21 be received;
2. That Council hereby directs the Treasurer to register a Notice of Vesting for the
property known as Roll No. 18 17 010 050 10420 0000; Highway 2; PIN 26608-
0089(LT); PT LT 25 CON 2 DARLINGTON AS IN N78601 (SECONDLY) pursuant to
subsections 379(5b) and (7.1) of the Municipal Act, 2001; and
3. That the Treasurer be authorized, under Section 354(2) and (3) of the Municipal Act
2001 to write-off taxes as uncollectible and charge back the proportionate amounts
under Section 353(2) and (3) to the Region of Durham and the Province of Ontario.
Municipality of Clarington
Report FSD-029-21
Report Overview
Page 2
The property known as 0 Highway 2 Roll No 1817 010 050 10420 located in Courtice was
advertised for tax sale on March 11, 2021. After receiving no tender bids, the tax sale
process was deemed unsuccessful under Part XI of the Municipal Act, 2001.
The Treasurer believes it is in the best interest of the Municipality to vest the property
pursuant to subsections 379(5b) and (7.1). The uncollectible taxes would be required to be
written off and the property would become exempt from taxation.
1. Background
1.1 In 2012, the property known as 1912 Highway 2 was expropriated to build the Highway
418 on -ramp. Through the severance process the subject property, now known, as 0
Highway 2 was created. The property is landlocked and is classed by MPAC as
Commercial Vacant Land (Attachment 1) It is zoned C6, a highway commercial
designation in the rural area. The Official Plan designates the property as Environmental
Protected and is within the Natural Heritage System of the Greenbelt.
1.2 A Tax Arrears Lien was registered on May 23, 2019 due to outstanding taxes dating back
to 2011. This property was eligible to be sold by public tender in May 2020. Due to the
COVID-19 pandemic, tax sale processes were placed on hold deferring the timelines until
the emergency order was lifted. The tax sale was scheduled for Thursday, March 11,
2021, in which no tender bids were received.
1.3 Due to an unsuccessful tax sale, the Municipality has two options. The Municipality can
re -advertise the property for tax sale within two years of the tax sale date or register a
Notice of Vesting.
1.4 It is unlikely this property would sell if re -advertised for tax sale due to the property being
landlocked and environmentally protected. Re -advertising will incur additional expenses
that would ultimately be paid by the Municipality if no successful tender bids are received.
For these reasons, it is recommended that Council approve the Notice of Vesting.
2. Financial Impact
2.1 As of May 14, 2021, the outstanding amount owing on the property is $81,538.27,
broken down as follows:
Total outstanding taxes $18,253.00
Total unpaid charges added to the roll (Note 1) 31,373.11
Total outstanding penalties 31,912.16
Total outstanding arrears for the property (Note 2) $81,538.27
Municipality of Clarington
Report FSD-029-21
2.3
Page 3
2.1.1. (Note 1) Unpaid charges include professional fees for conducting the tax sale
process and a property standards charge for an extensive property clean up.
2.1.2. (Note 2) Additional professional fees would be added to finalize the Notice of
Vesting.
Under Section 353(2) and (3) of the Municipal Act, 2001, the taxes written off, as
uncollectible can be charged back in its proportionate share as follows:
Municipality of Clarington
Regional Municipality of Durham
Province of Ontario (School Boards)
$66,878.89
6,678.36
7,446.97
It is recommended that the Municipality of Clarington's share be written off using the
Unclassified Admin —Tax W/O account 100-21-211-00000-7212.
3. Concurrence
3.1 This report has been reviewed by the Director of Planning and Development Services
who concurs with the recommendation.
4. Conclusion
4.1 It is respectfully recommended that Council directs the Treasurer to register a Notice of
Vesting, for the taxes to be written off and the proportionate share be charged back to
the Region of Durham and the Province of Ontario.
Staff Contact: Jessica James, CMRP(A), Manager of Taxation Services, 905-623-3379 ext.
2609, ijames(a)-clarington.net
Attachments:
Attachment 1 — Aerial photo of 1817 010 050 10420
Generated: January 28, 2021 1 For Current Information Contact the Municipality of Clarington