Toronto city staff want to see Victoria University pay property tax on Yorkville land
The head of Victoria University tried to convince Toronto councillors the school can come to a deal with the city — without involving the province — about the controversial tax-free status of the land the institution owns in an upscale Yorkville neighbourhood.
William Robins appeared before the government management committee Tuesday to answer questions as city staff want the school to pay taxes on a parcel of land it owns on the so-called mink mile; the school's tenants include names like Prada, Cartier, and Michael Kors.
"You can understand, I'm sure, that on the face of it, it looks as if some of the city's most successful and lucrative retailers are potentially getting a break while we are struggling with our revenues at the city," Coun. Janet Davis said.
While the school — better known as the University of Toronto's Victoria College — does not pay property taxes on the land, it's unclear whether it does on the buildings themselves.
"The lease arrangements are complicated," Robins told the government management committee. "But this is very much part of the ongoing negotiations with city staff, I can assure you that."
'Fiscal pressures'
Robins said that he understands that the city faces fiscal pressure. Toronto staff have been pushing council to consider new revenue sources — like the now-scrapped toll proposal for the Gardiner Expressway and Don Valley Highway — to meet the increasing costs to deliver services to a city of 2.79 million.
"The post-secondary education sector does also face resource issues," Robins told the committee.
He added that he hopes the city and the school can come to an agreement that works for both sides.
The city estimates it's losing about $1.6 million in tax revenue a year on the property, thanks to a 1951 agreement between the school and the province.
Talks ongoing for years
That agreement allows the school to own part of the block on Bloor Street West between Queens Park and Sultan Street, and others properties, without paying any property tax on that land.
City staff have been trying to convince the school, however, to pay those taxes for several years.
The committee voted unanimously Tuesday to ask council for approval to continue negotiations with Victoria University until September.
If the two sides cannot reach a deal by then, city staff want council's approval to ask Queen's Park to change the legislation that granted the school a property tax exemption.
