Proposed Inclusion of Live Music Venues as a component of the Creative Co-Location Facilities Property Tax Subclasses

The purpose of this report is to amend the eligibility criteria for the Subclasses to strengthen the original intent of the benefit in supporting access to space for creative enterprises and to help address the unprecedented challenges threatening live music venues in Toronto through recommended amendments and expansion of the Subclasses. More specifically, the report recommends that City Council authorize the creation of a third category of eligible properties within the Subclasses to include live music venues where local and grassroots musicians perform. Stringent, objective and enforceable guidelines for eligible portions of properties in which live music venues operate are recommended and include eligibility criteria with consideration for: (A) venue infrastructure; (B) bookings and compensation; (C) creative sector employment; (D) time in operations; and, (E) attendance capacity. In initially approving the Subclasses, Council recognized the public benefit being generated by specific properties in meeting the provincial definition of creative enterprises in producing cultural goods and services. Toronto's live music venues, which are the training ground and launch pad for musical careers, need critical support in the face of ongoing pressures that threaten to close dozens of local venues. The timing of the proposed implementation of the third intake of the Subclasses in 2020 with expanded criteria is related to the City's efforts in COVID-19 recovery for the cultural sector, consistent with the intent of the enabling provincial legislation for the Subclasses and addressing Council directives to promote Toronto as a music city. Staff have consulted closely with industry on the proposed live music venues eligibility criteria through the Toronto Music Advisory Committee (TMAC). Finally, also proposed for the 2020 taxation year is temporarily suspending a portion of the eligibility criteria respecting the tenant-based properties and the membership based co-working facilities since applicants would not be able to fulfill these particular requirements due to the public health protection measures related to the COVID-19 pandemic and the closing of their operations by provincial emergency orders.

eligibility criteria respecting free programming and cultural activities for the public at tenant-based properties; and suspending the application of delivery eligibility criteria respecting terms of co-working memberships and professional development services for creative enterprises at membership based co-working facilities as described in this report such that these eligibility criteria are not required to be met during the period while public health protection measures remain in effect related to the COVID-19 pandemic. 3. City Council authorize the City Solicitor to submit the bills necessary to amend Municipal Code Chapter 767, Taxation, Property Tax, to give effect to these recommendations. 4. City Council direct the General Manager, Economic Development and Culture to report to the Toronto Music Advisory Committee on the impact of the Creative Co-Location Facilities Property Subclasses on live music venues and the status of its administrative process within twelve months. 5.City Council approve the increase to Non Program Tax Deficiencies 2020 Budget by $1.06 million gross with a corresponding withdrawal from Assessment Appeal Stabilization Reserve (XQ0706), for $0 million net change to fund the tax relief measures in this report for 2020 taxation year.