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Home My WebLink AboutTR-24-96 TILE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File # C x� Date: April 1, 1996 Res. # By-Law# Report#: T�=?1__24 96 File#: Subject: 53 KING STREET EAST, BOWMANVILLE Recommendations: i It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report TR-24-96 be received; 2. THAT the amounts owing for taxes and property standards orders totalling $65,280.32 for 53 King Street East be written off to the 1995 accounts as outlined in TR-24-96; and 3. THAT Council authorize payment of the outstanding hydro electric arrears totalling $2,775.20. BACKGROUND AND COMMENT: On December 28, 1996, the Municipality of Clarington registered a vesting order pursuant to the Municipal Tax Sales Act R.S.O. Subsequently, on January 4, 1996, Eviction Notices were sent to the occupants/tenants at the property giving them thirty (30) days to vacate the premises. On March 14, 1996, a Divisional Court Judge awarded the Municipality a Writ of Possession to the property forthwith. However, the Judge has allowed one tenant to remain in the building for two months. On March 18, 1996, the Senior By-Law Enforcement Officer and the Property Manager oversaw the changing of the locks on the building. The Municipality must now deal with the outstanding taxes which at December 31, 1995 were i $65,280.31. Therefore, a write-off of this amount is required to clear the tax roll. They are not recoverable from the Region or School Boards accounting to verbal direction from the Ministry of Municipal Affairs. i RECYCLED PAPIER PAPER H-CLE / 43 iHI515 PRRf Q REGVCIER PAPER TR-24-96 Page -2- The following is a breakdown of the taxes for the property as at December 31, 1995: Xear : Pxz�c�pal � trest ` nta .... : :::: 1995 $ 9,778.37 1,046.25 0,84.62 1994 4,374.32 32 1,004.63.63 '> 7. 1993 4,268.78 8.78 1,628.13.13 Prior 2 8 33 0.59 1 4 84 9.24 <<;; >: ... oral X46,252 06 $L8,52$25 $6i5:2 a3: * this includes a property standard order for $5,598.68 and penalty/interest totalling $699.80. The property standard order may be recoverable through court action, but more than likely the cost of such action would be in excess of the order itself. It would be more a matter of principle should the Municipality decide to pursue it. The Treasury Department will notify the Assessment Office that the property is municipally owned and thereby request exempt status. Once, the 442 application is approved the 1996 taxes will be cancelled and proportionately written off against the municipal (20%), region (19%) and school board (61%) accounts. Assuming the 1996 taxes will be similar to last year the total would be approximately $4,179.69. The municipality's share representing approximately $835.94. Two business' were being operated from the premises, namely Annis Jewellers and Gifts Ltd. and Funland Video. 442 applications have been prepared to cancel the business taxes for the period March 18, 1996 to December 31, 1996. As the February instalments on business taxes were paid, a refund of approximately $9.14 and $25.12 to Funland Video and Annis Jewellers and Gifts Ltd., respectively, may be required (based on 1995 rates). A number of costs were incurred as a result of the action to sell the property for the tax arrears. Some of these costs were to have been recovered had a successful tax sale taken place. As a vesting order was registered, the costs cannot be recovered. All the following costs are reported in the 1995 operating accounts of the Municipality. The following are the advertising costs that were incurred: 1. Ontario Gazette $ 188.91 2. Clarington This Week 171.20 3. Courtice News 400.18 4. Canadian Statesman and 496.14 Newcastle Independent 5. Orono Weekly Times 247.17 $1,503.60 / 44 TR-24-96 Page -3- The following are the legal costs that were incurred that were also to have been recovered: 1. Tax Arrears Certificate $ 166.56 2. Statutory Declaration 97.97 3. Miscellaneous 736.98 $1,001.51 The Treasury Department is currently awaiting a breakdown of the legal costs that have accumulated as a result of the court proceedings that have taken place since early December 1995. These costs are estimated to be approximately $7,500 to date. The Municipality was awarded costs at three separate court appearances in the amounts of $1,500, $350 and $1000. Mr Annis has paid the costs in the amount of $350 but the $2,500 remains outstanding. It is unlikely this amount will be paid unless the Municipality takes action to pursue it. Other miscellaneous costs incurred include the Writ of Possession and the locksmith costs totalling $188.80 and $238.61 respectively. In addition, the Municipality has just been notified of outstanding hydro electric arrears totalling $2,775.20, up to February 1996 (refer to Attachment #1). Clarington Hydro Electric's only alternative if they cannot collect is to add the arrears to the tax roll. Therefore, the Municipality will be required to absorb these costs. All the above miscellaneous costs total approximately $13,207.22 exclusive of the outstanding court costs of $2,500 to be recovered. CONCLUSIONS: The Municipality of Clarington must absorb the outstanding taxes totalling $65,280.31. This amount will be written off in 1995 against the Tax Receivable Bad Debts of $27,279.83 and the remaining balance of $38,000.48 against the Tax Write-Off Reserve. DEPOSITION OF THE BUILDING: A report will be forthcoming from the Property Manager and By-law Enforcement which will up- date Council on the structural integrity of the building and it will make recommendations regarding the ultimate disposition of the building. Respect f submitted, Reviewed by, Marano, H.BSc., A.M.C.T., W.H. Stockwell, Treasurer. Chief Administrative Officer. MM/RS/hjl Attachment i /45 FROM: CLRRINGTON HYDRO FAX NO . : 9056235915 03-27- ATTACHMENT #1 larington Clarington Hydro-Electll %OW11s1111111»blvill Bax 134,2849 Hwy.N2 at Lambe Rd, Howmanviile,Ontario George Van Dyk,Char L1 C 3K8 Pauline J.Storks.Vice-Chair David Clark,CMA-Manager Suzanne Elston,Commissionor Telephone(905)623-4625 PAuI Roesor,Commignioner Fax(905)623.5915 Diane Hamre,Mayor March 27, 1996 The Corporationof the Municipality of Corporation 40 Temperance Street Bowmanville, Ontario L1C 3A6 Re: Outstanding Hydro Accounts Dear Ms. Marie Marano: 1 am writing to inform you that there is outstanding hydro arrears totalling in the amount of$2,775.20 for services provided up to February 8, 1996. The final billing has not been completed presently but I have estimated the final billings in the amount of$1.142.03. Approximate total is $3,917.23. 1 will forward the final billings for these services when they are available. I am enclosing a listing of outstanding accounts. If you have any questions, please contact me at (905) 623-4625 Ext. #304. Sincerely, Jackie Collection Clerk Enclosure I i I 746 FROM : CLRRINGTON HYDRO FRX NO. : 9056235915 03-27-96 12:05 P .02 Outstanding Estimated Approximate Account Number Service Address Amount Final Billing Total 040013372 16 Division Street, Apt.#4 $513.27 $285.42 798.69 040013555 16 Division Street, Apt.#5 $853.52 $24.08 5877.60 040013700 10 Division Street $287.04 $178.86 0465.90 040013836 12 Division Street 5201.79 $121.34 $323.13 040014001 53 King Street East $411.45 $241.21 $ 52.66 040014106 14.5 Division Street $508.13 $291.12 $799,25 ApproxitiWe Total $2,775,20 $1,142.03 53,917.23 147