Assessment Review Board
Commission de révision de l’évaluation foncière
ISSUE DATE: April 6, 2017
Assessed Person(s): Waterloo University
Appellant(s): 2155733 Ontario Inc.
Respondent(s): The Municipal Property Assessment Corporation (“MPAC”), Region 21
Respondent(s): City of Waterloo
Property Location(s): 375 Hagey Blvd
Municipality(ies): City of Waterloo
Roll Number(s): 3016-041-250-06430-0000
Appeal Number(s): 3002115, 3090280, and 3156916
Taxation Year(s): 2014, 2015 and 2016
Hearing Event No.: 661466
Legislative Authority: Section 40 of the Assessment Act, R.S.O. 1990, c. A.31, as amended
Heard: February 28, 2017 in Waterloo, Ontario
APPEARANCES:
| Parties | Counsel+/Representative |
|---|---|
| 2155733 Ontario Inc. | B. Patterson |
| MPAC | T. Pileggi |
| City of Waterloo | M. Weatherhead |
DECISION OF THE BOARD DELIVERED BY JOSEPH M. WYGER
INTRODUCTION
1In the research and development hub located near, and owned by Waterloo University, is a three-storey Class “A” office building built in 2011. It is situated on 6.27 acres within this “technology park” which draws high tech talent from the university. The building has achieved the prestigious Gold ranking from the organization that administers the Leadership in Energy and Environmental Design (“LEEDS”). This is a construction standard that emphasizes green energy, quality materials, water and air quality management leading to lower operating costs and happier and more productive occupants. The property is assessed at $19,013,000 for the 2014 through 2016 taxation years, using the net income approach on the basis of a fair market rent (“FMR”) of $18 per square foot (“psf”). The Appellant is a tenant of the building and proposes a FMR of $16 psf leading to a suggested current value of $16,900,000. The difference between the two positions is largely a question of which comparable properties and their attendant leases are most comparable to the subject office building.
DECISION
2I conclude that the appropriate FMR to use to value this property is $18 psf, and confirm the current value as returned in the amount of $19,013,000 apportioned $14,131,710 into the New Large Office class and $4,881,290 into the New Commercial class. I am unable to make a finding that this current value is inequitable relative to the assessed values of similar lands in the vicinity.
REASONS FOR DECISION
Legislation
3Section 19 of the Assessment Act (“Act”) states:
19.(1) Assessment based on current value. – The assessment of land shall be based on its current value.
4Section 44 of the Act states:
44.(1) Assessment may be open upon appeal. – Upon an appeal on any