Shoppers Drug Mart v. Embee Properties Limited, 2016 CanLII 80446

Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE: November 16, 2016

FILE NO.: DM 2016M20

Moving Party(ies): Shoppers Drug Mart

Respondent(s): Embee Properties Limited

Respondent(s): Municipal Property Assessment Corporation (“MPAC”)

Respondent(s): City of Mississauga

Property Location(s): 2470 Hurontario Street

Municipality(ies): City of Mississauga

Roll Number(s): 2105-060-125-05900-0000

Appeal Number(s): 2965749, 3033630, 3086389 and 3151657 (reinstated to 3198355, 3198356, 3198357 and 3198358)

Taxation Year(s): 2013, 2014, 2015 and 2016

Hearing Event No.: 642465

Legislative Authority: Section 40 of the Assessment Act, R.S.O. 1990, c. A.31, as amended

Heard: September 29, 2016 by teleconference call and converted to written hearing

WRITTEN SUBMISSIONS:

Parties Shoppers Drug Mart

Counsel+/Representative Richard Minster+

DISPOSITION OF THE BOARD DELIVERED BY MEMBER J. L. WALKER

MOTION

12470 Hurontario Street (“subject property”) is a single parcel of land improved by a standalone commercial building located in the City of Mississauga. It is owned by Embee Properties Limited (“Embee”) and Shoppers Drug Mart (“Shoppers”) is the sole occupant and tenant. Pursuant to an Agreement to Lease, Shoppers is responsible for all property taxes and for all property tax related appeals.

2Embee, represented by its tax consultant the Altus Group, filed section 40 appeals of the assessment for the 2013 – 2016 taxation years. Shoppers submits that it did not launch its own appeals as by the terms of the lease, it understood its interests were protected. On June 3, 2016 Shoppers sought interested party status from the Assessment Review Board (“Board”). The request was approved by the Board’s Deputy Registrar on July 22, 2016.

3On July 6, 2016, Altus Group, on behalf of Embee, wrote to the Board requesting that its appeals be withdrawn prior to Shoppers having interested party status. Shoppers only became aware of the withdrawals when it noticed a change in the status of the appeals on the Board’s website on July 11, 2016.

4The withdrawal of the appeals were administratively processed by the Assessment Review Board (“Board’) in August 2016, contemporaneous with a series of e-mails between the parties and to the Board confirming that Embee had consented not to act on its withdrawal request or in the alternative, that it agreed to the reinstatement. Upon reviewing these facts, the Board determined that a motion be scheduled in this matter.

5Shoppers, by its counsel Richard R. Minster, and with consent of all the parties, seeks an Order reinstating the assessment appeals for tax years 2013 - 2016 (appeal numbers 2965749, 3033630, 3086389 and 3151657) for the subject property.

6Mr. Minster submits that should the appeals not be reinstated, there is prejudice to Shoppers. Both Embee and Shoppers appealed the assessment for the 2012 tax year (2008 base year). The assessment was reduced from $9,530,000 to $5,956,000 for the 2012 tax year based on the correction of an error (an overstated basement storage area) through Minutes of Settlement.

7Shoppers alleges that the same error has reoccurred for the 2012 base year. Mr. Minster submits that, absent a reinstatement of the appeals, Shoppers will be prejudiced by paying taxes on an area of the property that does not exist and by the overstated assessment remaining on the roll. All of the respondents (Embee, MPAC and the City of Mississauga) have consented to the reinstatement and have not indicated that they would suffer any prejudice.

DISPOSITION OF MOTION AND BOARD’S ORDER

8The motion to reinstate the appeals is granted. The Board agrees that in this case, Shoppers would be prejudiced if it was denied the opportunity to pursue the appeals.

9The Board orders that appeal numbers 2965749, 3033630, 3086389 and 3151657 for the 2013 – 2016 tax years are reinstated as appeal numbers 3198355, 3198356, 3198357 and 3198358.