Given the lease permits WRH to use the premises as a hospital worker support operation, including using the space for meeting rooms and providing rooms for sleep and accommodation, WRH would be considered to be operating a public hospital at the premises and therefore the property would be exempt from taxes during the time of such operation and use.

Administration’s interpretation and analysis is based on the above legislation and more specifically the O Reg. which at the present time does not contain an end date. As such, the cancellation or reduction in taxes would be for the period of time during which this O Reg. is in place and the lease is active or WRH is using and occupying such land/premises. Reduced or cancelled taxes would end when either the O Reg. terminates or WRH ceases to use and occupy the land/premises as indicated above, whichever comes first.

Risk Analysis:

In the event that this lease continues outside of the timelines for the declared state of emergency a further analysis would be required to determine eligibility of any reduced or cancelled taxes. Further consideration would be required as to the permitted use of the premises and whether the tenant would be considered operating a public hospital and whether there were any applicable exemptions to property taxes.

Financial Matters:

The property at 33 Riverside Dr. E, is currently classified within the commercial tax class and is assessed at a value in excess of $10.7 million. Total property taxes paid in 2019 was $455,259. This property is located within the Downtown Business Improvement Area and as such an additional $24,038 was billed and paid as part of the 2019 final taxes.

To date for 2020, an interim property tax bill in the amount of $227,629 has been issued and payments in accordance with the City’s pre-authorized payment plan were made for the months of February and March. The property owner advised the City to suspend the remaining payments based upon this tax relief request.

Based upon proposed property tax rates for 2020, as outlined in Report C 44/2020, total property taxes for 2020 are estimated to be $484,413. Using the effective date of the lease with WRH being April 1, 2020, the property owner would owe taxes for the period January 1, 2020 to March 31, 2020 (91 days) where the property was being used for purposes of a hotel in the amount of $120,771. Total payments of $91,052 have been received by way of pre-authorized payment leaving an outstanding balance of $29,719. Upon receipt of the balance due in full, Administration would process a credit for an amount equivalent to the taxes for each month thereafter that the property continues to qualify for the tax exemption. As indicated above, this would be the earlier of either the end of the O Reg. or the lease with WRH.