Assessment Review Board
Commission de révision de l’évaluation foncière
ISSUE DATE: April 21, 2016
Assessed Person(s): 2147882 Ontario Ltd.
Appellant(s): 2147882 Ontario Ltd.
Respondent(s): Municipal Property Assessment Corporation (“MPAC”) Region 09
Respondent(s): City of Toronto
Property Location(s): 421 Dundas Street West
Municipality(ies): City of Toronto
Roll Number(s): 1904-065-230-01500-0000
Appeal Number(s): 2952762, 3014564, 3076465 and 3150007 (deemed 2016 appeal)
Taxation Year(s): 2013, 2014, 2015 and 2016 (deemed appeal)
Hearing Event No: 615630
Legislative Authority: Section 40 of the Assessment Act, R.S.O. 1990, c. A.31, as amended
Heard: February 17, 2016 in Toronto, Ontario
APPEARANCES:
Parties
Counsel+/Representative
2147882 Ontario Ltd.
Daniel Attard+
MPAC
Erin Grant
City of Toronto
No one appeared
DECISION OF THE BOARD DELIVERED BY J. L. WALKER
INTRODUCTION
1421 Dundas Street West is a multi-tenant income producing property (assigned property code (“PC”) 430) with a total gross leasable area (“GLA”) of 33,000 square feet (“sq. ft.”). It has three storeys plus a lower level. The subject property was assessed at $8,219,000 for the 2013, 2014 and 2015 taxation years, apportioned at 90% Commercial (“CT”) and 10% Shopping Centre (“ST”). The Municipal Property Assessment Corporation (“MPAC”) recommends that the assessment be reduced to $7,888,000. It arrived at this reduction based upon an analysis of fair market rent (“FMR”) of the subject property as well as direct comparisons with properties in the vicinity. Erin Grant, appearing on behalf of MPAC submits that the reduced value is the correct and equitable value of the subject property.
2There is no dispute between the parties regarding the application of the income approach to value, or regarding the vacancy, expenses, and cap rate to be applied in calculating current value. The dispute of current value centers on the relevance of the 2008 sale of the subject property to the 2012 assessment, and whether the 2012 assessment is equitable with the value of similar lands in the vicinity. Daniel Attard, counsel for the Appellant, argues that the April 2008 sale of the property for $6,280,000 resulted in Minutes of Settlement (“MOS”) which reduced the assessment from $6,849,000 to $6,154,000 for the 2008 valuation date, and that MPAC failed to take this reduction into account when calculating the assessment for the 2012 valuation date. He further argues that the subject property has been treated inequitably when compared to other commercial properties assigned PC 430 in the City of Toronto. The Appellant submits that the correct and equitable value of the subject property is $7,384,000 (rounded).
3The Assessment Review Board (“Board”) must determine the current value of the land, and, having reference to the value at which similar lands in the vicinity are assessed, adjust the assessment of the land to make it equitable with that of similar land in the vicinity, if such an adjustment would result in a reduction of the assessment of the land.
DECISION
4The Board determined that the current value of the subject property is $7,880,000, and that a further reduction to $7,385,000 is required to make this value equitable with that of similar lands in the vicinity. The Board reduces the assessment from $8,219,000 to $7,385,000 (rounded) for the