{"id":10315,"date":"2016-01-31T17:04:23","date_gmt":"2016-01-31T22:04:23","guid":{"rendered":"https:\/\/huntsville.dopperonline.ca\/?p=10315"},"modified":"2016-02-24T07:07:35","modified_gmt":"2016-02-24T12:07:35","slug":"listen-up-leases-at-the-summit-centre-put-the-town-in-a-precarious-position-opinion","status":"publish","type":"post","link":"https:\/\/doppleronline.ca\/huntsville\/listen-up-leases-at-the-summit-centre-put-the-town-in-a-precarious-position-opinion\/","title":{"rendered":"Listen Up! &#8211; Leases at the Summit Centre put the Town in a precarious position &#8211; Opinion"},"content":{"rendered":"<div id=\"attachment_5890\" style=\"width: 211px\" class=\"wp-caption alignleft\"><a href=\"https:\/\/media-doppleronline-ca.s3-accelerate.amazonaws.com\/2015\/10\/HM-0020-2-Profile-picture.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-5890\" class=\"size-medium wp-image-5890\" src=\"https:\/\/media-doppleronline-ca.s3-accelerate.amazonaws.com\/2015\/10\/HM-0020-2-Profile-picture-201x300.jpg\" alt=\"Hugh Mackenzie Huntsville Doppler\" width=\"201\" height=\"300\" srcset=\"https:\/\/media-doppleronline-ca.s3-accelerate.amazonaws.com\/2015\/10\/HM-0020-2-Profile-picture-201x300.jpg 201w, https:\/\/media-doppleronline-ca.s3-accelerate.amazonaws.com\/2015\/10\/HM-0020-2-Profile-picture.jpg 321w\" sizes=\"auto, (max-width: 201px) 100vw, 201px\" \/><\/a><p id=\"caption-attachment-5890\" class=\"wp-caption-text\">Hugh Mackenzie<br \/>Huntsville Doppler<\/p><\/div>\n<p><strong>A CONUNDRUM<\/strong><\/p>\n<p>I am starting to feel sorry for our Town Council, even though it is against my better instincts! Once again it appears that they have been hit with a legacy issue, not of their making, but one they have to deal with none the less.<\/p>\n<p>This past week at their General Committee meeting, Council was presented with a staff report entitled \u2018Municipal Capital Facilities\u2019 Canada Summit Centre. The main recommendation in the report is \u201cThat Town owned property, located at 20 Park Drive be declared for cultural, recreation and tourist purposes as well as social and health services and is for public use.&#8221; Sounds boring doesn\u2019t it, but not so! Stay with me.<\/p>\n<p>There are three private entities operating out of the Canada Summit Centre under leases from the Town. They are Algonquin Family Health Team, Motivations Fitness Centre and Oliver\u2019s Coffee Shop. While I am not certain of the status of the Algonquin Family Health Team, Motivations and Oliver\u2019s are private, for profit, operations.<\/p>\n<div style=\"float: left; margin-right: 14px;\"><strong> <broadstreet-zone zone-id=\"45658\" keywords=\"\" soft-keywords=\"true\" zone-alias=\"\"><\/broadstreet-zone><\/strong><\/div>\n<p>A Provincial agency, The Municipal Property Assessment Corporation (MPAC) has determined that these three operations are taxable tenants and that property taxes apply to the portion of the land that they are occupying under the lease. The assessment to date is $19,590.10. Of this $7,337.26 is applied to education and $8,061.46 to The District of Muskoka. The remainder is owed to the Town.<\/p>\n<p>Sounds fair on the face of it, doesn\u2019t it? After all, homeowners and other private businesses have to pay property taxes, why shouldn&#8217;t private entities who just happen to lease space in the Summit Centre also pay property tax? But here\u2019s the rub. When these leases were negotiated by the Town several years ago, the leaseholders were not required to pay property taxes. Further, although there are incremental rent increases every five years, one of the leases is renewable every five years for up to 20 years. Wow! You can hardly blame the leaseholders. If someone handed me a tax free lease for 20 years, I would sign it in a split second. It does beg the question though &#8211; who drafted these leases?<\/p>\n<p>So now, who is going to pay those taxes? The Town can write their portion off but they are still responsible for paying the taxes for the Board of Education and the District of Muskoka for anywhere from 20 to 40 years. This of course would be a direct cost to Huntsville taxpayers.<\/p>\n<p>In an effort to get around all of this, Town Staff tabled the proposal last week, that would designate the Summit Centre \u201cfor cultural, recreational and tourist purposes as well as social and health services for public use.\u201d You might well ask, what exactly does that mean? According to the report, it means that if the Summit Centre is declared a Municipal Capital facility as described in the Ontario Municipal Act, then ALL the land occupied by the Summit Centre could be considered to be tax exempt. It goes on to say that the current tenants would fall into the purposes as outlined in the Ontario Municipal Act, as Motivations provides recreation and Oliver\u2019s Coffee Shop provides cultural, recreation and tourist services for the Summit Centre\u2026. that last one being a bit of a stretch to put it mildly!<\/p>\n<p>Here then is the conundrum. Council is trying to find a way to save taxpayers a good deal of money because of badly drawn leases by a previous administration. They did not cause the problem but they are trying to fix it. This proposal to fix it however, certainly challenges the smell test. The fact that the Town is only now proposing this designation for the Summit Centre demonstrates pretty clearly that they are doing so specifically to avoid paying taxes on assessment deemed appropriate by MPAC. Surely the services covered for exemption under the Municipal Act are for services offered by the municipality, not by the private sector. To try to squeeze Oliver\u2019s and Motivations into these definitions is like putting round pegs into square holes. Some will see this proposed move as specious and unfair to other retailers in Town who have to include property taxes in their overhead. One observer even wondered if the staff interpretation of the wording in the municipal act smacked of fraud?<\/p>\n<p>Huntsville Council is between a rock and a hard place on his one. Either they go for the tax exemption on the whole building or they are on the hook for the portion of uncollectable property tax for years to come. It is quite possible that they may face the same issue with current and future tenants of the Waterloo Building and the Train Station. I would not want to be in their shoes as they grapple with how to deal with this unfortunate situation. It is a tough one.<\/p>\n<p><strong>NOTE<\/strong><\/p>\n<p>Don\u2019t forget the joint meeting of the Bracebridge and Huntsville Councils at the Algonquin Theatre on Monday night at 7:00 PM. It is an important meeting about the future of hospital and health care services in Muskoka. The hospital issue is heating up again as described in my midweek edition of Listen Up, <a href=\"https:\/\/doppleronline.ca\/huntsville\/listen-up-why-does-the-hospital-board-seem-to-be-working-against-us-instead-of-with-us\/\">get the link here<\/a>. The meeting tomorrow night is open to the public. It is important to demonstrate that we are not apathetic.<\/p>\n<p style=\"text-align: center;\"><strong> <broadstreet-zone zone-id=\"45657\" keywords=\"\" soft-keywords=\"true\" zone-alias=\"\"><\/broadstreet-zone><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A CONUNDRUM I am starting to feel sorry for our Town Council, even though it is against my better instincts! Once again it appears that they have been hit with [&#8230;]<\/p>\n","protected":false},"author":2,"featured_media":10316,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[26,442,556,188],"class_list":["post-10315","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commentary","tag-breaking","tag-hugh-mackenzie","tag-summit-centre","tag-town-of-huntsville"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Listen Up! - Leases at the Summit Centre put the Town in a precarious position - Opinion - Huntsville Doppler<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/doppleronline.ca\/huntsville\/listen-up-leases-at-the-summit-centre-put-the-town-in-a-precarious-position-opinion\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Listen Up! - Leases at the Summit Centre put the Town in a precarious position - Opinion - Huntsville Doppler\" \/>\n<meta property=\"og:description\" content=\"A CONUNDRUM I am starting to feel sorry for our Town Council, even though it is against my better instincts! 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