Deliberations include LoveSong

Request for property tax break deferred

Discussion around the LoveSong Seniors Housing and Community Hub formed a good part of council’s 2022 budget deliberations last Wednesday and Thursday. LoveSong, a proposed affordable seniors housing project, consisting of up to 50 units, is located at the former Pinecrest school on Corey Street in Bloomfield. The not-for-profit’s ask of council was a request for full property tax relief for those years (2020 and 2021) already paid (amounting to approximately $45,000) on the property, as well as a rebate for the 2022 tax bill (approximately $25,000) and all future years. In a report, staff recommended council not consider special provisions for property tax rebates for the LoveSong project property. Reasons cited by staff for their recommendation indicated that once LoveSong becomes an eligible registered charity (anticipated by fall 2022), it can apply for a 40 per cent municipal property tax rebate under the Municipal Act.

LoveSong board member John Uings gave a deputation to council on staff’s recommendation to deny LoveSong’s request for property tax relief. He outlined LoveSong’s achievements since purchasing the property from the municipality, which included raising $400,000 to cover the purchase price, fees and carrying costs. “We have received an income of some $500,000, including a substantial grant from the Parrott Foundation, donations from individuals and Emmanuel Baptist Church, and we have received $150,000 from CMHC funding.” As well, the municipality are committed to waiving regular development charges, of which the municipality budgeted $70,000. In his argument on the staff recommendation, Uings said LoveSong is run by a small team of dedicated volunteers with effectively zero operational costs. “This all serves to highlight the tremendous achievement LoveSong has made in getting so far; it establishes its track record and it really is a remarkable achievement that we are where we are.”

Uings said the report’s inference is there is a risk of non-completion. “Our aim is to provide desperately needed affordable housing, and there is absolutely no reason for a report to infer that the Pinecrest project might not be completed,” said Uings. He explained LoveSong is in the process of applying to become a charity and the report recommends that council wait for that to happen, at which time the municipality are obligated to provide a minimum of 40 percent rebate on property tax. “The provincial regulations governing the municipality allows you complete freedom to grant relief from taxes from 40 percent up to 100 percent,” said Uings. “Having said that, you don’t have to wait for a charity application to go through, the regulations allow you to grant a minimum rebate of 40 percent to a notfor- profit organization with a similar purpose to a charity, and you can decide whether to give a rebate to LoveSong of up to 100 percent immediately, that is an option that is open to you.”

In his deputation, Uings noted rebated taxes will lower the operating costs and contribute to the number of affordable units being increased. He further noted funding opportunities are being hampered in part because of a lack of on-going municipal support. Uings reminded that the municipality received no property tax while Pinecrest operated as a school for around 50 years. “Had we not purchased it, then the municipality would still not be receiving tax revenue,” stated Uings. “We have purchased it with a crystal clear aim of providing affordable housing, but the approach recommended in the report is essentially, ‘anticipate the project may fail, exploit LoveSong’s revenue source, only provide a rebate, the minimum possible rebate, if it becomes a charity’,” he stated. “I find that unacceptable and it is a terrible message to send to all the individuals who are working and sacrificially giving from their income to LoveSong to cover carrying costs.” He said in contrast to the report’s general minimum recommendations, other municipalities are granting property tax relief stretching out into the future to new affordable housing projects regardless of whether they are for-profit, not-for-profit or charities.

Councillor Ernie Margetson put forward an amendment to the motion (which carried) to defer the decision to the financial contribution request from the LoveSong project pending further information, such as details of the seed funding agreement and the appropriate eligible funding activities, so the municipality can find a mechanism to use the reserve fund ($76,000) to assist LoveSong. “The municipality and this council should be supporting this project in any way we can,” said Margetson. “It also impacts our strategy to address climate change and adaptive re-use of a building, connections to water users, and to the vitality of Bloomfield and the greater community.”

Councillor John Hirsch suggested going a step further. “It’s very important this council take every opportunity to promote and help develop affordable housing.” He also expressed the ability for such organizations to be able to demonstrate on-going support from the municipality when applying for grants. “Is simply deferring this for now enough of an expression of on-going support that CMHC would be convinced the County is supporting this, or should we outright make a commitment to cover the taxes for this year as requested by LoveSong?” asked Hirsch.

CAO Marcia Wallace confirmed LoveSong need an actual financial commitment. “They are just looking for something tangible for the particular project that is being applied for,” said Wallace, noting staff will take the next couple of months to come back with options.” Wallace said staff was against the request because there was an agreement in place when the land was transferred, stating that the County would cover the cost of taxes, hydro and other incidentals up until the point of the transfer of ownership of the land. “Once LoveSong took it, they would cover it,” she said.

Councillor Jamie Forrester said these things have to start happening sooner. “I’d like to see shovels in the ground, whatever it takes to make this happen quicker.” Councillor Phil Prinzen said he supported staff’s recommendation, but he wants to see shovels in the ground too. He was concerned about what would happen if the LoveSong project did not proceed and asked whether the property would revert back to the County. “If LoveSong didn’t proceed, the assets would be transferred to the municipality’s Affordable Housing Corporation, that’s a possibility,” said Uings. “The assets will go to another qualified not-for-profit or charity, and we will ensure it goes to an affordable housing corporation.”

Mayor Steve Ferguson reminded Council that affordable and attainable housing has been, and continues to be, declared the County’s number one priority. “We do not want to in any way affect the enthusiasm of anybody that is associated with helping us address this problem,” said Ferguson. “A hard ‘no’ to staff’s recommendation is not appropriate at this point, so I am in support of turning over every stone to see how we can get affordable housing done, get shovels in the ground and get started,” he said. “If this is one thing that may aid that by deferring this for a little while until we get further information, then I’d support it.” The February 2 to 4 Council budget deliberations are available for viewing on the County’s YouTube channel.