Tribunals Ontario

Tribunaux décisionnels Ontario

Assessment Review Board

Commission de révision de l’évaluation foncière

ISSUE DATE: June 13, 2025

FILE NO.: WR 188343

Assessed Person(s): Emix Ltd.

Appellant(s): Emix Ltd.

Respondent(s): Municipal Property Assessment Corporation Region 14

Respondent(s): City of Markham

Property Location(s): 8400 Woodbine Avenue

Municipality(ies): City of Markham

Roll Number(s): 1936-020-113-21600-0000

Appeal Number(s): 3527786

Taxation Year(s): 2023

Hearing Event No.: 786876

Legislative Authority: Section 357(7) of the Municipal Act, 2001, S.O. 2001, c. 25

APPEARANCES:

Parties	Counsel/Representative
Emix Ltd.	Jeff Derbyshire
City of Markham	No one appeared

HEARD: April 14, 2025 by video conference

ADJUDICATOR(S): Anita Lovrich, Member

DECISION

OVERVIEW

Background

1Emix Ltd. (the “Appellant”) has brought an appeal to the Assessment Review Board (the “Board”) pursuant to s. 357(7) of the Municipal Act 2001, S.O. 2001, c. 25 (the “Municipal Act”) relating to 8400 Woodbine Avenue in the City of Markham (the “Subject Property”).

2The Subject Property is a 3.07-acre site improved with approximately 105,000 square foot commercial complex with both retail and office components. The Subject Property underwent extensive renovations to develop a self-storage facility.

3Because of the renovations to the Subject Property that took place in 2023, the Appellant filed applications with the City of Markham (the “City”) seeking tax relief pursuant to s. 357(1)(g) of the Municipal Act, which provides as follows:

Cancellation, reduction, refund of taxes

357 (1) Upon application to the treasurer of a local municipality made in accordance with this section, the local municipality may cancel, reduce or refund all or part of taxes levied on land in the year in respect of which the application is made if,

(g) repairs or renovations to the land prevented the normal use of the land for a period of at least three months during the year.

4On February 28, 2024, the Appellant submitted a s. 357 application to the City with regards to the repairs/renovations that prevented the normal use of 8400 Woodbine Avenue between October 3, 2022 and November 15, 2023. On April 30, 2024, the City denied the application. The City’s Notice of Decision provided no reasons for denying the application.

5The Appellant appealed the City’s decision to this Board pursuant to s. 357(7) of the Municipal Act, arguing that it should receive a partial refund in the taxes paid for 2023 in the amount of $48,785.

6The City did not attend the hearing or file submissions.

Result

7The Board finds that, pursuant to s. 357(1)(g) of the Municipal Act, the Appellant is entitled to relief. A refund of the property taxes paid for the 2023 taxation year is required, in the amount of $39,887.

Issues for the Hearing

8The Board must determine the following issues:

1. Issue 1: Did repairs or renovations of the Subject Property prevent its normal use for at least three months of the 2023 taxation year, per s. 357(1)(g) of the Municipal Act?
2. Issue 2: If the answer to Issue 1 is yes, should taxes be cancelled, reduced or refunded and, if so, how much?

ANALYSIS

Issue 1: Did Repairs or Renovations of the Subject Property Prevent its Normal Use for at Least Three Months of the 2023 Taxation year, per s. 357(1)(g) of the Municipal Act?

Evidence and Submissions

9The Appellant’s witness provided the following testimony relevant to Issue 1:

1. Demolition of a portion of the Ground floor, 100% of the 2nd floor and 100% of the 3rd floor was carried out between October 5, 2022 and December 1, 2022.
2. For the 2023 taxation year, the Subject Property underwent renovation from January 1, 2023 to November 15, 2023. Construction of the self-storage facility was substantially completed on November 15, 2023.
3. This renovation deemed a total of 70,224 square feet of the building’s ground, second, and third floors unfit for occupancy such that it was unusable for the purposes it was used prior to the renovation.
4. The normal use of the Subject Property was office and commercial use.
5. The taxes levied on the Subject Property in 2023 were paid in full.

10The following documents were entered into evidence by the Appellant:

1. A permit issued July 21, 2021 describing “Alterations: Interior/ Exterior” and “Interior Renovation for Self Storage Facility”.
2. A sworn affidavit from Paul McClusky, Controller for the Appellant stating:

   I have personal knowledge of the following information related to section 357 application filed by Altus Group Tax Consulting Paralegal Professional Corporation. Ground floor units, comprising of 2,161 and 3,473 square feet units were under owner renovation from September 29 2022 to November 15, 2023. The entire 2nd floor with units comprising 32,200 square feet was under owner renovation from September 29, 2022 to November 15, 2023. The entire third floor with units comprising 12,370, 1,500, and 15,808, and 2,710 square feet were under owner renovation from September 29 2022 to November 15 2023. Ground floor units comprising 24,491 square feet to be withdrawn from application.

3. Architectural drawings.
4. Preliminary Construction Schedule.
5. Contractor Stipulated Price Agreement.
6. Certificate of Publication published January 18, 2024, certifying that the contract for renovation was substantially performed on: November 15, 2023.
7. Subject Property Rent Rolls.
8. Payment memo from Turner & Townsend Cavalieri reviewing contractor monthly progress reports and starting “[i]t is our opinion that the Contractor has completed work and or delivered products to the place of work [ …] as of November 30, 2023.”.
9. Partial Occupancy Permit – Prior to Completion of Building issued by the City of Markham on September 18, 2023 stating:

   CONDITIONS FOR OCCUPANCY

   [ x ] AUTHORIZED OCCUPANCY IS LIMITED TO THE FOLLOWING AREAS: Ground floor, second floor, third floor and entry.

   [ x] SEPARATE PERMITS ARE REQUIRED FOR TENANT/UNIT IMPROVEMENTS INVOLVING CONSTRUCTION, AS DEFINED BY THE BUILDING CODE ACT, OR USES NOT ALREADY AUTHORIZED:

   Occupancy of the building or part thereof has been conditionally granted. Failure to comply with the following conditions within the specified time may result in the revocation of this Permit and the issuance of Orders restricting the use or occupancy of the building or building systems. In accordance with the Building Code, measures shall remain in place to prevent access to parts of the building or site that are incomplete, still under construction or the area has not been issued a Partial Occupancy Permit. or the area has not been issued a Certificate of Occupancy

   [ x ] NO CONDITIONS FOR OCCUPANCY APPLY

10. Tax bill.
11. Photographs pre-construction.
12. Demolition Photographs – November 2022.
13. Photographs taken during Construction – January 12, 2023.
14. Photographs taken during Construction – May 5, 2023.
15. Photographs Post Construction – May 2024.
16. A property profile for 227 King Street South.
17. A property profile for 10 Union Boulevard.

Findings on Issue 1

11Based on the Appellant’s uncontested evidence, the Board finds that repairs or renovations prevented the normal use of the Subject Property for a period of at least three months during 2023. In making this finding, the Board relies on the Appellant’s documentary evidence as well as the evidence of the Appellant’s witness confirming that renovations prevented the normal use of 70,224 square feet of the building’s ground, 2nd, and 3rd floors for at least three months in 2023.

12For these reasons, the Board finds that the answer to Issue 1 is that repairs or renovations did prevent the normal use of the Subject Property for at least three months of the 2023 taxation year.

Issue 2 - If the Answer to Issue 1 is Yes, Should Taxes be Cancelled, Reduced or Refunded and, if so, How Much?

Evidence and Submissions of the Parties

13The Appellant argued that the City should refund the Appellant $48,785.

14The Appellant submits that the November 15, 2023 substantial completion date is appropriate as verified by industry performance standards, as outlined in the Certificate of Publication, submitting this is the industry standard for substantial completion.

15The Appellant determined the 2023 tax refund as follows:

2023 Final Taxes (Entire Property)	$190,983
2016 CVA	$12,023,000
2023 Effective Tax Rate	0.01588482
Value of Renovated Area	$7,050,140
2023 Taxes Levied on Renovated Areas	$111,990
50% of Taxes Levied on Renovated Areas	$55,995
Pro-Rated Jan 1 to Nov 14, 2023	$48,785
Pro-Rated Jan 1 to Sept 18, 2023	$39,887

16The Appellant’s rationale for the 50% adjustment requested was that MPAC’s income approach incorporates both land and building components in their valuation. As the building shell remained during the Subject Property’s demolition/renovation/repairs the Appellant estimates that the demolition/renovation/repairs resulted in a 50% current value adjustment to the affected areas. This would provide for 50% of the value remaining to account for the building’s shell and the associated lands. The Appellant referenced the Board’s decision in 227 King Street Waterloo (Nominee) Inc. v Waterloo (City), 2024 CanLII 106827 (ON ARB), where the Board agreed that the demolition of a fourth floor of an office building resulted in a 50% current value adjustment.

17When asked about the partial occupancy permit authorizing occupancy as of September 18, 2023 and the rent rolls showing the leases of new tenants starting September 27, 2023, the Appellant stated that some work was ongoing from September 2023 to November 2023 but that tenants had started moving into the Subject Property. The Appellant could not state exactly what work took place between September 2023 to November 2023 or whether tenants could operate normally.

Findings on Issue 2

18The Board finds that “repairs or renovations to the land” did not take place from January 1, 2023 until November 15, 2023, as submitted by the Appellant as the Board is not satisfied, on the evidence before it, that repairs or renovations to the land prevented the normal use of the land between September 18, 2023, when the City issued a partial occupancy permit, and November 15, 2023. The Board finds that repairs and renovations took place on the Subject Property from January 1, 2023 to September 18, 2023. The Board also finds that those repairs and renovations prevented the normal use of 70,224 square feet of the building’s ground, second, and third floors.

19The City did not attend the hearing or oppose the Appellant’s evidence or its rationale for the 50% adjustment sought. Accordingly, the Board finds that, based on the uncontested evidence of the Appellant, the full eligible relief pursuant to s. 357(7) of the Municipal Act for the period of January 1, 2023 to September 18, 2023 is $39,887.

CONCLUSION

20The Board finds that, pursuant to s. 357(1)(g) of the Municipal Act, the Appellant is entitled to relief. A refund of the property taxes paid for the 2023 taxation year is required, in the amount of $39,887.

ORDER

21The Board orders that, for the 2023 taxation year, the City of Markham shall issue a refund of $39,887 on the taxes levied for the Subject Property.