A belated response to Kyle on the PILTs issue:

The City’s claim for the balance of the $48 million in unpaid property taxes is still very much alive. It’s in Federal Court, was adjourned pending the Supreme Court of Canada decision, and finalarguments are due by June, we understand.

The City staff report on the “Macro” settlement between the TPA and the City last November is available now at http://www.toronto.ca/legdocs/mmis/2009/cc/bgrd/backgroundfile-25601.pdf, and the Council minutes are at :http://www.toronto.ca/legdocs/mmis/2009/cc/minutes/2009-11-30-cc42-mn.htm

That “Macro” settlement included these provisions:

·         “the TPA will pay to the City payments in lieu of taxes (“PILT”) in an amount set out in this report, as determined by its Board based upon the Federal Dispute Advisory Panel decision, without  prejudice to the City pursuing its judicial review application in the Federal Court; $73,749 has been paid by TPA for 1999-2009 period

• “Settlement: TPA to pay $6.42 million [on account of property taxes] for 1999-2009 period but City may still pursue judicial review application to potentially realize higher amount.

“By way of background, at its meeting of February 23-25, 2009, City Council adopted the staff recommendations to pursue a judicial review application in the Federal Court of the DAP’s decision respecting four properties owned by the TPA. The City Solicitor and staff from Revenue Services are pursuing that judicial review application in the Federal Court which is expected to be heard in the Spring of 2010. As a result, the City is not conceding anything under this proposed agreement and will get the benefit of receiving the PILTS that the TPA has agreed to pay.”

So, contrary to what the TPA would have you believe, the TPA is far from paying its fair share of taxes –  that payment of only $73,749 for a ten year period when the City stated that some $48 million was owing, is scandalous.

One does hope that, when this is finally resolved (no doubt, now, given that decision) Porter will finally be required to pay  its proportionate share of the property taxes on the 215 acre Island Airport. Which of course, it cannot, as t is running out of money (its current assets are les than its current liabilities as of the end of December, according to the preliminary prospectus), and is entirely dependent upon the success of its IPO to find the money it needs to survive.

 Brian Iler