KIRKLAND LAKE TO COUN. Tax Arrears Certificate Extension Agreement for 953 Government Road West - 45 Days
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1 KIRKLAND LAKE T H E R I G H T E N V I R O N M E N TO COUN Meeting Date: November 2, 2017 Report Date: October 30, 2017 Decision Requested: r Yes r No r Direction Only Priority: High Low Type of Meeting: Open Closed Presented by: Peter Avgoustis Report Title Department: Treasury Tax Arrears Certificate Extension Agreement for 953 Government Road West - 45 Days That Council use the following as a guideline when considering an extension agreement request: The public benefits and outcomes associated with an extension; The companionate grounds and circumstances associated with the rationale no payment plan had been negotiated and/or received after (4) four consecutive years of arrears; The history of the property owner's compliance with statutory obligations and debt payments, The terms and conditions associated with the extension, and, The alternative of not approving an extension. The property in question has outstanding tax arrears of $290, Background The Municipal Act, 2001 sets out the regulations pertaining to property tax collection, tax arrears certificate registration after three years of arrears, and the tax sales process after the fourth year of arrears. Section 378 of the Municipal Act 2001, also authorizes Council to pass a By-law within one year of the date of registration of a tax arrears certificate, allowing for an extension agreement with the owner(s) of the land against which the tax arrears certificate is registered, to extend the period of time for payment of the cancellation price beyond the time provided for payment in the Municipal Act, 2001; Page 1 of 2
2 Options / Discussions Council has two definitive options: 1. Authorize and approve enter into extension agreement, OR 2. Decline the extension agreement, and proceed with the tax sale process. r Departments nd Affectei CAO Comments Page 2 of 2
3 KIRKLAND LAKE T H E R I G H T E N V I R O N M E N T THE CORPORATION OF THE TOWN OF KIRKLAND LAKE By-Law No Being a By-Law to Authorize the Treasurer to enter into an Extension Agreement with the Owners of 953 Government Rd W to extend the period of time in which the cancellation price is to be paid WHEREAS Roll No known as 953 Government Rd W and owned by Kirkland Lake Industrial Plaza Limited has tax arrears of $304, as at March 15, 2016; AND WHERAS the Town of Kirkland Lake registered a tax arrears certificate under section 373 of the Municipal Act, 2001 on April 2, 2015 for overdue taxes; AND WHERAS the property owners have proposed payment arrangements; NOW THEREFORE BE IT RESOLVED THAT THE COUNCIL OF THE CORPORATION OF THE TOWN OF KIRKLAND LAKE ENACTS AS FOLLOWS: 1. That the Treasurer be authorized to enter into a tax arrears extension agreement, attached as Appendix "A", with Kirkland Lake Industrial Plaza Limited for Roll No , 953 Government Rd W, pursuant to section 378 of the Municipal Act, READ a first, second and third time, enacted and passed this 15th day of March, omazzi, Mayor 4o Ann Ducharme, Clerk
4 THIS AGREEMENT made in triplicate this 15lh day of March, 2016 BETWEEN: TOWN OF KIRKLAND LAKE (Hereinafter referred to as the "Town") - and - KIRKLAND LAKE INDUSTRIAL PLAZA LIMITED Hereinafter referred to as the "Owner" WHEREAS the Owner is the owner of land in the Town municipally known as The Corporation of the Town of Kirkland Lake; AND WHEREAS the Owner's land is in tax arrears, and a tax arrears certificate has been registered on title to the land, pursuant to the Municipal Act S.O. 2001, c. 25; AND WHEREAS pursuant to section 378 of the Municipal Act 2001, the Town may, by By-law passed within one year of the date of registration of a tax arrears certificate, authorize an extension agreement with the owner(s) of the land against which the tax arrears certificate is registered, to extend the period of time for payment of the cancellation price beyond the time provided for payment in the Municipal Act, 2001; AND WHEREAS the Town has passed By-law , authorizing such an extension agreement, in the discretion of the Town's Treasurer; AND WHEREAS on request of the Owner, the Treasurer has authorized such an extension agreement, on the terms set out herein and in accordance with the provisions of the Municipal Act, 2001, regarding tax extension agreements; AND WHEREAS, pursuant to the Municipal Act, 2001, an extension agreement may provide for terms of payment and for the events and circumstances which will cause the agreement to come to an end, but may not reduce the amount of the cancellation price nor prohibit any person from paying the cancellation price at any time; AND WHEREAS while the extension agreement is in effect, the Owner is entitled to all of the benefits of an extension agreement provided for in the Municipal Act, 2001 and upon compliance with all of the provisions of the extension agreement is entitled to have the Treasurer register a tax arrears cancellation certificate as provided in the Municipal Act, 2001; NOW THEREFORE the parties hereto agree as follows: Terminology 1. For the purposes of this Agreement: "Act" means the Municipal Act, 2001, S. O. 2001, c. 25. and all regulations thereunder, all as amended or replaced from time to time; "Cancellation Price" has the meaning in the Act; "Land" means the land and buildings municipally known as 953 GOVERNMENT ROAD WEST, KIRKLAND LAKE, ONTARIO, legally described as PCL 9481 SEC CST; FIRSTLY: PT MINING LOCATION L5686 TECK SRO PT 2 TER147 EXCEPT PT 1 54R2960; KIRKLAND LAKE; DISTRICT OF TIMISKAMING, and assigned tax roll number ; "Tax Arrears Certificate" means the tax arrears certificate registered against the Owner's property on APRIL 2, 2015 as instrument DT49530, in accordance with the Act; "Tax Arrears Cancellation Certificate" has the meaning in the Act; and "Treasurer" means the Town's Treasurer.
5 Bylaw Page 2 of 5 Cancellation Price 2.( 1) The Owner acknowledges that as of March 15, 2016 the Cancellation Price for the Owners Land is $304,663.81, (2) The Owner acknowledges being advised and understands that the Cancellation Price changes from time to time, as a result of such reasons as the levy of current taxes, imposition of interest, penalties, administrative charges, interest charges, and receipt of payments. Effect of Agreement 3.(1) The Town agrees to extend the period of time in which the Cancellation Price is to be paid from March 15, 2016 to March 15, 2019, provided the Owner remains in good standing under this Agreement. (2) The Town shall not count the period that this Agreement is in effect in calculating the periods mentioned in subsection 379(1) of the Act. (3) During the term of this Agreement and despite any other provision of this agreement, the Act shall continue to apply to the collection and enforcement of all tax arrears and all taxes, except that while the Owner is not in default under this Agreement, the Treasurer and the Tax Collector shall not enforce collections of such tax payments by the sale of the Land. This Agreement shall not be deemed to waive any statutory rights and powers of the Town or the Owner under the Act. Owner's Payment Obligations- Existing Arrears, etc, 4.(1) The Owner agrees to pay to the Town the total amount set out in Schedule A, on the days and in the instalment amounts specified in Schedule A. (2) Payments shall be made by way of post dated cheques. (3) Despite subsection 4(2) the Treasurer may, at any time, accept payment of or authorize future payment of some or all future instalments by an alternative method of payment. (4) Despite subsection 4(1), the Owner or any other person, may, on or before March 15, 2019, pay the balance of the Cancellation Price then outstanding. Owner's Obligations - New Taxes, Arrears etc. 5. On or before the due date for the final instalment as set out on Schedule A, the Owner shall pay to the Town in addition to the final instalment specified on Schedule A. any arrears of taxes which may have accumulated, any other charges that are a lien on the Land and any penalties and interest that may arise or be imposed pursuant to the Act. Right to Cancellation Certification on Payment 6. Upon receipt by the Town of payment in full of all amounts owing under this Agreement, the Treasurer shall forthwith register a Tax Arrears Cancellation Certificate on title to the Land and this Agreement shall come to an end. Effect of Failure to Pay in Full 7. In the event that the Cancellation Price is not paid by March 15, 2019 then the Owner agrees to consent to and will not object to the sale of the Land by the Town and shall consent to any court orders necessary to permit the Town to sell the said Land. Owner's Other Obligations 8. During the term of this Agreement, or until it is earlier terminated, the Owner agrees to: (a) (b) maintain the Land in a good state of repair and in good condition; give notice in writing to the Treasurer of any litigation before any court, administrative board or other tribunal which affects the owner or the Land;
6 Bylaw Page 3 of 5 (c) (d) comply with all federal, provincial and municipal statutes, regulations and bylaws which affect the Land and the use of the Land and to comply with all agreements or covenants upon which or under which the Land is held; and not dispose of the Land or any interest therein, including without limitation by sale, transfer, transfer of easement, charge, assignment, lease, covenant, lien or other encumbrance, without the prior written consent of the Town. The Owner understands and agrees that consent may be withheld unless payment is made in full of all amounts owing pursuant to this Agreement by or on behalf of the Owner, Effect of Default - One Opportunity to Remedy, Only 9(1) Subsection to subsection 9(2), in the event that the Owner defaults in any payment hereunder or is default of any other covenant or condition hereunder, and such default continues for a period of seven (7) days, the Treasurer shall give the Owner a notice in writing to remedy the default within a period of seven (7) days from the date of the notice, and in the event that the Owner fails to remedy the default within such period, this Agreement shall become null and void and shall cease to be a subsisting agreement as of the date of the default of payment, and in any other case, as of the date of the Treasurer's notice in writing, and the Owner shall be placed in the position that the Owner was in prior to entering into this Agreement. (2) Despite Subsection 9(1), in the event that the Owner commits a second default under this Agreement, or the same or a different provision, this Agreement shall become null and void and shall cease to be a subsisting agreement as of the date of the default of payment, and in any other case, as of the date of the Treasurer's notice in writing, and the Owner shall be placed in the position that the owner was in prior to entering into this Agreement and the Owner shall have no right to remedy the default. Notice 10(1) Any notice required to be given to a party, shall be sufficiently given if sent by registered or certified mail to the following address: To the Town: Town of Kirkland Lake 3 Kirkland St, PO Box 1757 Kirkland Lake, ON P2N 3P4 Attention, Treasurer Jennifer Elder To the Owner: Kirkland Lake Industrial Plaza Limited Box 753 Kirkland Lake ON P2N 3K1 (2) Notice shall be deemed to be effective on the 3rd business day after mailing, whether or not actually received, where for this section 'business day' shall mean Monday to Friday, except any statutory or civic holiday. (3) In the event of a postal disruption, notice may be delivered by courier, deemed effective the second business day after delivery to the courier, or by personal service, deemed effective upon delivery to the person being served. Registration of / Copies of Agreement 11.(1) The Owner consents to the Town registering this Agreement or Notice of this Agreement on title to the Land, if the Town so chooses. The Owner further agrees to execute upon request of the Treasurer, an Application to Register a Restriction on Transfer and Mortgage of the Land and to have same registered on title to the Land. The Owner
7 Bylaw Page 4 of 5 understands and agrees that the Owner shall be responsible for payment of ail fees and disbursements incurred by the Town in the registration and any subsequent amendment or discharge of any such document. (2) The Treasurer, on request of any person, shall permit such person to inspect a copy of this agreement and shall provide copies thereof at the rate established under the Town's miscellaneous user fee bylaw. Governing Law 12. This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario. Any legal proceedings related to this Agreement shall be commenced before the Superior Court of Justice in the District of Timiskaming. 13. Headings or descriptive words at the commencement of the various sections are inserted only for convenience and are in no way to be construed as a part of this agreement or as a limitation upon the scope of the particular section to which they refer. Number and Gender 14. In this agreement the use of the singular number includes the plural and vice versa and the use of any gender includes all genders. 4^> Binding Effect 15. This Agreement including the Schedules attached hereto and forming an integral part of this Agreement, and everything contained herein shall ensure to the benefit of, and be binding upon, the parties hereto and their respective successors and permitted assigns. IN WITNESS WHEREOF the Corporate parties have hereunto caused their Corporate Seals to be affixed and attested by their proper officers and the individual parties have hereunto set their hands and seals, at the times and places indicated. TOWN OF KIRKLAND LAKE Jennif r / Treasurerx Name I <=-"*'' Position Witness I/We have authority to bind the Corporation
8 Bylaw Page 5 of 5 SCHEDULE..A PARTI Calculation of Cancellation Price as of March 15, 2016 Tax Sale FILE NO. #15-04 (1) Outstanding taxes, penalty and interest, and costs as of March 15, 2016: $304, (2) Estimated penalty and interest charges after March 15, 2016 until agreement end March 15, 2019: $54, (3) All future tax bills sent during the period of this agreement (4) Any future costs that may arise during this agreement TOTAL ESTIMATED AMOUNT PAYABLE UNDER EXTENSION AGREEMENT: 5359, Instalments and Due Dates PART 2 The total amount calculated in Part 1 shall be due and payable in the following amounts and on (1) 36 payments of $10, each on or before the last business day of each month, commencing March 31, 2016 ^ (2) Payment in full of future tax bills on or before each installment due date (3) Any remaining amount owing at agreement end March 15, 2019.
9 KIRKLAND LAKE H R I G H T E N V I R O N M E N T THE CORPORATION OF THE TOWN OF KIRKLAND LAKE By-LawNo Being a By-Law to Authorize the Treasurer to enter into an Extension Agreement with the Owners of 953 Government Rd W to extend the period of time in which the cancellation price is to be paid WHEREAS Roll No known as 953 Government Rd W and owned by Kirkland Lake Industrial Plaza Limited has tax arrears of $290, as at November 2, 2017; AND WHERAS the Town of Kirkland Lake registered a tax arrears certificate under section 373 of the Municipal Act, 2001 on April 2, 2015 for overdue taxes; AND WHERAS the property owners have proposed payment arrangement; NOW THEREFORE BE IT RESOLVED THAT THE COUNCIL OF THE CORPORATION OF THE TOWN OF KIRKLAND LAKE ENACTS AS FOLLOWS: 1. That the Treasurer be authorized to enter into a tax arrears extension agreement, attached as Appendix "A", with Kirkland Lake Industrial Plaza Limited for Roll No , 953 Government Rd W, pursuant to section 378 of the Municipal Act, READ a first, second and third time, enacted and passed this 2m day of November Tony Antoniazzi, Mayor Jo Ann Ducharme, Clerk
10 THIS AGREEMENT made in triplicate this 2nd day of November, 2017 BETWEEN: TOWN OF KIRKLAND LAKE (Hereinafter referred to as the "Town") - and - KIRKLAND LAKE INDUSTRIAL PLAZA LIMITED Hereinafter referred to as the "Owner" WHEREAS the Owner is the owner of land in the Town municipally known as The Corporation of the Town of Kirkland Lake; AND WHEREAS the Owner's land is in tax arrears, and a tax arrears certificate has been registered on title to the land, pursuant to the Municipal Act, 2001, S.O. 2001, c. 25; AND WHEREAS pursuant to section 378 of the Municipal Act 2001, the Town may, by By-law passed within one year of the date of registration of a tax arrears certificate, authorize an extension agreement with the owner(s) of the land against which the tax arrears certificate is registered, to extend the period of time for payment of the cancellation price beyond the time provided for payment in the Municipal Act, 2001; AND WHEREAS the Town has passed By-law , authorizing such an extension agreement, in the discretion of the Town's Treasurer; AND WHEREAS on request of the Owner, the Treasurer has authorized such an extension agreement, on the terms set out herein and in accordance with the provisions of the Municipal Act, 2001, regarding tax extension agreements; AND WHEREAS, pursuant to the Municipal Act, 2001, an extension agreement may provide for terms of payment and for the events and circumstances which will cause the agreement to come to an end, but may not reduce the amount of the cancellation price nor prohibit any person from paying the cancellation price at any time; AND WHEREAS while the extension agreement is in effect, the Owner is entitled to all of the benefits of an extension agreement provided for in the Municipal Act, 2001 and upon compliance with all of the provisions of the extension agreement is entitled to have the Treasurer register a tax arrears cancellation certificate as provided in the Municipal Act, 2001; NOW THEREFORE the parties hereto agree as follows:
11 Terminology 1. For the purposes of this Agreement: "Act" means the Municipal Act, 2001, S. O. 2001, c. 25, and all regulations thereunder, all as amended or replaced from time to time; "Cancellation Price" has the meaning in the Act; "Land" means the land and buildings municipally known as 953 GOVERNMENT ROAD WEST, KIRKLAND LAKE, ONTARIO, legally described as PCL 9481 SEC CST; FIRSTLY: PT MINING LOCATION L5686 TECK SRO PT 2 TER147 EXCEPT PT 1 54R2960; KIRKLAND LAKE; DISTRICT OF TIMISKAMING, and assigned tax roll number ; "Tax Arrears Certificate" means the tax arrears certificate registered against the Owner's property on APRIL 2, 2015 as instrument DT49530, in accordance with the Act; "Tax Arrears Cancellation Certificate" has the meaning in the Act; and "Treasurer" means the Town's Treasurer. Cancellation Price 2.(1) The Owner acknowledges that as of November 2nd, 2017 the Cancellation Price for the Owner's Land is $290, (2) The Owner acknowledges being advised and understands that the Cancellation Price changes from time to time, as a result of such reasons as the levy of current taxes, imposition of interest, penalties, administrative charges, interest charges, and receipt of payments. Effect of Agreement 3.(1) The Town agrees to extend the period of time in which the Cancellation Price is to be paid from November 2nd,2017 to December 15, 2017, provided the Owner remains in good standing under this Agreement. (2) The Town shall not count the period that this Agreement is in effect in calculating the periods mentioned in subsection 379(1) of the Act. (3) During the term of this Agreement and despite any other provision of this agreement, the Act shall continue to apply to the collection and enforcement of all tax arrears and all taxes, except that while the Owner is not in default under this Agreement, the Treasurer and the Tax Collector shall not enforce collections of such tax payments by the sale of the Land. This Agreement shall not be deemed to waive any statutory rights and powers of the Town or the Owner under the Act. Owner's Payment Obligations- Existing Arrears, etc.
12 4.(1) The Owner agrees to pay to the Town the total cancellation price on or before the agreed upon date of December 15, (2) Payments shall be made by way of cash, certified cheque, or bank draft. (3) Despite subsection 4(2) the Treasurer may, at any time, accept payment of or authorize future payment by an alternative method of payment. (4) Despite subsection 4(1), the Owner or any other person eligible under the Act, may, on or before December 15, 2017, pay the balance of the Cancellation Price then outstanding. Owner's Obligations - New Taxes. Arrears etc. 5. On or before the specified due date for this agreement of December 15, 2017, the Owner shall pay to the Town, any arrears of taxes which may have accumulated, any other charges that are a lien on the Land and any penalties and interest that may arise or be imposed pursuant to the Act. Right to Cancellation Certification on Payment 6. Upon receipt by the Town of payment in full of all amounts owing under this Agreement, the Treasurer shall forthwith register a Tax Arrears Cancellation Certificate on title to the Land and this Agreement shall come to an end. Effect of Failure to Pay in Full 7. In the event that the Cancellation Price is not paid by December 15, 2017 then the Owner agrees to consent to and will not object to the sale of the Land by the Town and shall consent to any court orders necessary to permit the Town to sell the said Land. Owner's Other Obligations 8. During the term of this Agreement, or until it is earlier terminated, the Owner agrees to: (a) (b) (c) (d) maintain the Land in a good state of repair and in good condition; give notice in writing to the Treasurer of any litigation before any court, administrative board or other tribunal which affects the owner or the Land; comply with all federal, provincial and municipal statutes, regulations and bylaws which affect the Land and the use of the Land and to comply with all agreements or covenants upon which or under which the Land is held; and not dispose of the Land or any interest therein, including without limitation by sale, transfer, transfer of easement, charge, assignment, lease, covenant, lien or other encumbrance, without the prior written consent of the Town. The Owner understands and agrees that consent may be withheld unless payment is made
13 Effect of Default in full of all amounts owing pursuant to this Agreement by or on behalf of the Owner. 9. In the event that the Owner fails to pay the cancellation price in full on or before December 15, 2017, this Agreement shall become null and void and shall cease to be a subsisting agreement as of the date of the default of payment, and the Owner shall be placed in the position that the Owner was in prior to entering into this Agreement, without notice. Registration of/ Copies of Agreement 11.(1) The Owner consents to the Town registering this Agreement or Notice of this Agreement on title to the Land, if the Town so chooses. The Owner further agrees to execute upon request of the Treasurer, an Application to Register a Restriction on Transfer and Mortgage of the Land and to have same registered on title to the Land. The Owner understands and agrees that the Owner shall be responsible for payment of all fees and disbursements incurred by the Town in the registration and any subsequent amendment or discharge of any such document. (2) The Treasurer, on request of any person, shall permit such person to inspect a copy of this agreement and shall provide copies thereof at the rate established under the Town's miscellaneous user fee bylaw. Governing Law 12. This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario. Any legal proceedings related to this Agreement shall be commenced before the Superior Court of Justice in the District of Timiskaming. Headings 13. Headings or descriptive words at the commencement of the various sections are inserted only for convenience and are in no way to be construed as a part of this agreement or as a limitation upon the scope of the particular section to which they refer. Number and Gender 14. In this agreement the use of the singular number includes the plural and vice versa and the use of any gender includes all genders. Binding Effect 15. This Agreement including the Schedules attached hereto and forming an integral part of this Agreement, and everything contained herein shall ensure to the benefit of, and be binding upon, the parties hereto and their respective successors and permitted assigns.
14 IN WITNESS WHEREOF the Corporate parties have hereunto caused their Corporate Seals to be affixed and attested by their proper officers and the individual parties have hereunto set their hands and seals, at the times and places indicated. TOWN OF KIRKLAND LAKE Peter Avgoustis - Treasurer/CAO Name Position Witness Name Position Witness I/We have authority to bind the Corporation
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