Keeping Sailors Afloat - by Councillor Paula Fletcher, seconded by Councillor Brad Bradford

These facilities have helped to meet demand for sailing in a social context and are consistent with the desire of the City to provide diverse, locally responsive recreation opportunities. Over the years, many of these clubs have faced ongoing challenges, specifically as it relates to significant increases in their property tax assessments and corresponding increases in property tax, of which, they are fully responsible for as per the terms of their agreements with the City. These increases have ultimately been resolved through the property assessment appeal process - many of these appeals are filed and administered by staff at the City of Toronto, a process that is administratively onerous on both the City and its community sailing club tenants. While these assessment appeals are being considered, these clubs can face property tax obligations that are difficult to meet and puts them at risk of default to the City of Toronto until such time as the tax appeals are resolved and the taxes are adjusted accordingly. As a way to mitigate against these significant fluctuations in property taxes from one year to another, consideration should be given to amend the existing leases with the boat clubs to explore options around moving from fully net leases which are currently in place, to semi-gross leases. A semi-gross lease would see the boat clubs pay a regularized annual amount in basic rent and property taxes which would increase annually by a prescribed amount, allowing these community sailing clubs to easily forecast and cash-flow allowing them to mitigate against any potential defaults of their leases. Additionally, this allows City staff to ultimately deal directly with the Municipal Property Assessment Corporation and not have to involve any of the clubs in negotiated settlements of property assessments.