August 11, 1999
To:Administration Committee
From:Acting Commissioner of Corporate Services
Subject:Outstanding Realty Taxes - 71 Milvan Drive
Purpose:
To seek authority to pay outstanding realty taxes from the proceeds of the sale of this property.
Financial Implications:
$20,290.68 being the outstanding realty taxes for the period January-June 1999 is being requested to be funded from the
sale proceeds of 71 Milvan Drive in the amount of $535,000.00 as approved by City Council at its meeting on March 2, 3
and 4, 1999.
Recommendations:
It is recommended that:
(1) the outstanding realty taxes which accrued during the City's ownership of 71 Milvan Drive be paid from the proceeds
of the property sale; and
(2) the appropriate City official's be authorized and directed to take the necessary actions to give effect thereto.
Background:
The property at 71 Milvan was acquired in August 1997 by the former City of North York for non-payment of taxes. City
Council approved the sale of this property at its meeting held on March 2, 3 & 4, 1999 and the transaction closed on June
30, 1999.
Real Estate owned by the City is normally tax exempt, the exception being when it is leased to or occupied by others, at
which time it becomes taxable. The report recommending this sale indicated that the former owners of the property
continued to occupy the premises during the City's ownership although there was never a lease agreement nor was the
arrangement acknowledged by either party.
As in completing most transactions, the realty taxes were apportioned, with the Vendor being responsible for those prior to
the closing date and the purchaser for any subsequent taxes. The 1999 taxes outstanding for the period to June 30, 1999
totalled some $20,290.68. Past City practice, in the sale of surplus property, has been to pay outstanding amounts such as
this from the proceeds of the sale.
Conclusions:
Payment of outstanding taxes is a normal adjustment on the sale of real estate. This report requests authority to pay
outstanding realty taxes for the period of January 1, 1999 to June 30, 1999 from the sale proceeds.
Contact Name:
Roland Mayr, Facilities & Real Estate (416)392-1166, Fax No.: (416)392-1880. (ac99125.doc)
Brenda Glover
Acting Commissioner of Corporate Services
RM/ps
