To effectively manage the list of potential properties, Administration is planning to hold two (2) tax sales prior to December 31, 2020. Tax sale dates will be determined at a later date based upon various criteria including workload requirements and changes in number of properties; however they have preliminarily been set for late spring and fall 2020.

Of the twenty-six (26) properties eligible for tax sale in 2020, eighteen (18) are residential homes, six (6) are commercial/mixed or industrial use buildings, and two (2) are classified as industrial and commercial vacant land. The process by which properties are sold at tax sale is not taken lightly and, given a majority of the properties are residential, Administration will continue to communicate directly with the property owners throughout the process proceeding only where, in the City Treasurer’s opinion, it is the only remaining option to collect the outstanding arrears in a reasonable time frame.

Consistent with prior years, the full listing of properties will be circulated to City departments for review and departmental consideration. Certain City departments may consider acquisition of some of the properties. Should they wish to do so, they need to obtain separate Council approval to place a tender and will need to assess the impact on their annual budget operating approvals.

Risk Analysis:

There are several risks that need to be carefully weighed prior to making a determination to proceed with a tax sale. Ultimately, if a property does not sell by way of the tax sale, Administration will be required to make a determination as to whether or not to recommend to City Council vesting ownership of the property with the municipality. The intention of the tax registration process is to enable the municipality to take action by which to collect the outstanding taxes, not take property ownership away. In many cases, there is no municipal use for these properties, which leave these properties to accumulate as inventory in land held for resale.

Property specific risks such as Crown liens, environmental concerns and property standard compliance issues are considered prior to individual properties being recommended for sale. In 2014, City Council authorized Administration to enter into agreements with external third party organizations as it relates to the collection of outstanding property taxes (CR 237-2014) which serves to mitigate this risk.

Staff resourcing will be necessary to plan, co-ordinate and conduct the scheduled tax sales, which may take priority over other collection activities.