Tribunals Ontario
Tribunaux décisionnels Ontario
Assessment Review Board
Commission de révision de l’évaluation foncière
ISSUE DATE: October 11, 2024
Assessed Person(s): Universal Resource Recovery Inc.
Appellant(s): Universal Resource Recovery Inc.
Respondent(s): City of Welland
Property Location(s): 615 Rusholme Road
Municipality(ies): City of Welland
Roll Number(s): 2719-060-004-14801-0000
Appeal Number(s): 3518766
Taxation Year(s): 2022
Hearing Event No.: 783685
Legislative Authority: Section 357(8) of the Municipal Act, 2001, S.O. 2001, c. 25
APPEARANCES:
Parties
Representative
Universal Resource Recovery Inc.
Peter Tam
City of Welland
No one appeared
HEARD: July 5, 2024 by video conference
ADJUDICATOR(S): Dan Weagant, Member
DECISION
OVERVIEW
1On July 5, 2024, the Assessment Review Board (the “Board”) held a full hearing pursuant to its Rules of Practice and Procedure effective April 1, 2021 (the “Rules”) and the Schedule of Events in this proceeding.
2Universal Resource Recovery Inc. (the “Appellant”) filed two applications with the City of Welland for the cancellation, reduction or refund of taxes, for a portion of the 2022 taxation year. The first application related to the demolition of what was referred to as the South Building on the subject lands and was made under s. 357.(1)(d) of the Municipal Act, 2021, S.O. 2001, c.25 (the “Act”), because a building on the land was razed by fire, demolition or otherwise. That application was considered by Council of the City of Welland and was approved, with a refund in the amount of $21,534.72. That application is not before the Board, but is relevant in the context of the second application.
3The second application related to repairs or renovations to the land that prevented the normal use of the land for a period of at least three months during the year, pursuant to s. 357.(1)(g) of the Act.
4The Council of the City of Welland failed to make its decision on the second application by September 30, 2023. Pursuant to s. 357.(8) of the Act, the Appellant appealed to the Board. At the hearing, the Board confirmed that the appeal was properly made and met the timing requirements of the Act.
5It is this second application, now appealed, that is before the Board.
6On July 10, 2024 the Board issued a procedural order (DM 186549), setting out requirements for additional information required by the Board to make its determination on the appeal. The Appellant provided that information on July 25, 2024. No response was received by the Board from the City of Welland.
Background
7The Appellant submits that during the 2022 taxation year, portions of the land subject to this appeal underwent repairs or renovations to the land that prevented its normal use for a period of at least three months.
Issues for the Hearing
8The Board must determine the area of the subject property that was under renovation or repair in 2022. After determining the extent of the renovations or repair, the Board must decide if those renovations and repairs prevented the normal use of the land for a period of at least three months in 2022. If the Board determines that renovations and repairs prevented the normal use of the subject lands for at least three months, the Board must then decide on the amount of taxes to be cancelled, reduced or refunded as a result.
Result
9The Board finds that the renovations and repairs undertaken in 2022 prevented the normal use of the lands under this appeal, related to the second application, for a period of 158 days. Accordingly, the Board finds that the amount of taxes to be cancelled is $10,999, in addition to the refund approved by Welland City Council in the first application, cited in paragraph [2] above.
ANALYSIS
Description of Subject Property
10The subject property is an industrial site that, at the time of the work described by the Appellant, included two buildings, known as the South Building and the North Building. The Municipality granted a refund of taxes for work related to the South Building. That application is not before the Board.
11The areas subject to this appeal are in the North Building and are known as Units 104 and 105. The Appellant submitted that those two units underwent renovations that primarily involved the demolition of certain elements and the installation of two washroom modules; one module to serve each of the two units separately. That work required the removal of certain parts of the floor of the building, electrical and plumbing upgrades and installation of the washroom modules.
Issue 1 – What were the renovations and repairs undertaken at the subject property?
The Appellant’s Evidence
12In response to DM 186549 the Appellant provided the Board with the following:
- a photographic record of the renovation work completed at various stages of progress;
- technical drawings produced in advance of the renovation work;
- purchase orders sent to the contractors outlining the work to be completed; and
- invoices from the contractors upon completion of various stages of the work, dated January, February, March and May of 2022.
13The work undertaken involved the removals of portions of the existing concrete floor, re-establishing the floor slab after new plumbing works were installed, electrical upgrades for service to the new washroom areas, the removals of existing plumbing fixtures and previous washrooms facilities, the removal of wall cladding and replacement with new cladding and the installation of two modular washroom facilities one for each of the two units.
14The Appellant submits that the work was undertaken throughout the period identified in its original application filed with the City of Welland and that the duration of the work was from December 12, 2021 through June 7, 2022.
Findings on Issue 1
15The Board finds that renovations and repairs were undertaken during the period indicated by the Appellant.
Issue 2 – Did the renovations or repairs to the subject property prevent the normal use of the subject property?
16The Appellant submits that the work described by the contracts and invoices rendered by the contractors establishes that the areas affected were unusable during the renovations.
Findings on Issue 2
17The photographic record of the work in progress is compelling evidence of the impact of the work on the subject areas. The removal of existing features, the presence of contractor equipment and multiple stages of construction were clearly disruptive.
18The Board finds that the two areas subject to this appeal were unusable for normal use.
Issue 3 – What is the amount of taxes levied in 2022 to be cancelled, reduced or refunded?
19To arrive at the amount of taxes to be cancelled, reduced or refunded, the Appellant pro-rated the total assessment of the North Building to reflect the assessment of units 104 and 105 and arrived at assessments of $297,193 and $226,387 respectively. The Appellant then calculated the amount of taxes to be cancelled reduced or refunded as follows:
2022 Assessment
2022 Tax Rate
2022 taxes
Number of days (January 1, 2022 through June 7, 2022)
Percentage of days / 2022 Tax Year
Taxes to be Cancelled, Reduced or Refunded
Unit 104
$297,193
4.852796%
$14,422.17
158
43.3
$6,243
Unit 105
$226,387
4.852796%
$10,986.10
158
43.3
$4,756
Total
$10,999
20The Board notes that the Appellant has claimed only those days in 2022 for which the repairs or renovations rendered the subject portions of the property unusable for normal use.
CONCLUSION
21The Board finds that there were renovations or repairs undertaken at the subject property (specifically the North Building) that prevented its normal use and that the normal use was prevented for a period of 158 days in 2022.
22The Board finds that the taxes to be cancelled, reduced or refunded is $10,999.
ORDER
23The Board orders that taxes levied on the subject property in 2022 are cancelled in the amount of $10,999, in addition to the refund previously approved by Council for the same taxation year related to the demolition of the South Building on the subject property.