The Standard (St. Catharines)

Liens on old GM property

- KARENA WALTER STANDARD STAFF

The St. Catharines company tasked with designing the former General Motors site has put a constructi­on lien on the property alleging non-payment by Bayshore.

A property title search shows Better Neighbourh­oods Inc. put the $160,841 constructi­on lien on the properties at 282 and 285 Ontario St. on Nov. 17.

It joins Canada Revenue Agency, which has had a $1.9-million lien on the properties since September.

The City of St. Catharines, meanwhile, is owed $1.7 million in property taxes since 2015 but cannot act to collect it until the fourth year of non-payment.

Better Neighbourh­oods’ Glenn Barr, a consulting engineer specializi­ng in urban design, said the company did master planning for the whole GM site over the past couple of years, including planning and engineerin­g.

“As planners and engineers, we go along with the flow and do the best job we can. We try to avoid doing liens but in this case we couldn’t,” Barr said.

Barr said constructi­on liens are fairly common and he’s had to use them with other companies through the years that get behind of their payments. He said the mechanism is there under the Constructi­on Lien Act to help engineers and planners protect themselves.

He said Better Neighbourh­oods continues to represent Bayshore for certain matters at city hall.

“We take the attitude that the project is bigger than the owner,” Barr said. “We also continue to work on it because we want the project to succeed for the benefit of the city. Whether Bayshore carries on holding the property or somebody else takes over the property, we’d like to continue working on the property.”

Better Neighbourh­oods planners were at city council in June with a first phase plan for the site — a 37unit subdivisio­n on a 1.16-hectare former GM parking lot at 10 Pleasant Ave.

City council on June 26 approved the draft plan of subdivisio­ns for the project which includes detached, semi-detached and townhouse dwellings and a six-unit apartment building.

The parking lot is part of a massive 20 hectares of former GM land now owned by Bayshore.

“We’re excited about the developmen­t of the General Motors site. We think it’s going to be a big thing for the city and we think that it’s important that it happen well, that it’s designed well,” Barr said. “We are attempting to make that happen and we hope to be part of the process down the road.”

Bayshore lawyer Howard Manis said he believes the constructi­on lien is ineffectiv­e in that the services rendered are not the type that can be liened.

“It’s work that improves the property and we don’t think this is,” Manis said from Toronto. “And we think that if anything is owing, it’s substantia­lly less than the $160,000 that they registered for.”

The land title also has a lien on the property from Sept. 15 for $1.9 million by the federal government’s minister of national revenue pursuant to the Excise Tax Act.

A restrictio­ns order not to sell or transfer the land is also on the properties as of Dec. 13 due to a Superior Court preservati­on of property order involving a $15-million lawsuit with metal recycler Attar Metals.

A statement of property taxes owing from the City of St. Catharines obtained by The Standard this month shows Bayshore owes $1.75 million in taxes from 2015, 2016 and 2017.

The amount is the total for both Ontario Street addresses and includes significan­t penalty and interest at a rate of 1.25 per cent.

However, Mayor Walter Sendzik said the company has a threeyear window to pay under the Municipal Act and is not off-side with official regulation­s. He said many companies put money into their properties and pay the taxes later which include interest.

“From my perspectiv­e, it’s a big parcel of property. A lot of expense had to go into it,” Sendzik said, adding he’s not surprised Bayshore hasn’t paid property taxes yet.

“This is not something new in our business community.”

City treasurer Kristine Douglas said under the act, a municipali­ty can’t take collection action until the fourth year after there are three proceeding years of unpaid taxes. That’s applicable to all properties in the municipali­ty, including homes and businesses.

An individual or company that owes taxes for the past three years has until Dec. 31 of 2017 to submit payment or the city moves forward with a tax arrears process.

“We try as much as we can to work with the property owners and get the taxes paid before we move to the registrati­on process,” Douglas said. “Once we register a tax arrears certificat­e, then we can’t accept any partial payments and all taxes and outstandin­g arrears need to be paid.”

If an individual or company pays enough to cover its first year of taxes owing, the clock moves forward and they’re not at risk of entering the tax registrati­on process. kwalter@postmedia.com twitter.com/ karena_standard

 ?? SUPPLIED ILLUSTRATI­ON/FILES ?? An illustrati­on by Better Neighbourh­oods developmen­t consultant­s of a proposed developmen­t on the former GM parking lot at the corner of Pleasant Avenue and Thomas Street. The illustrati­on shows an existing home on Thomas Street, left, with proposed...
SUPPLIED ILLUSTRATI­ON/FILES An illustrati­on by Better Neighbourh­oods developmen­t consultant­s of a proposed developmen­t on the former GM parking lot at the corner of Pleasant Avenue and Thomas Street. The illustrati­on shows an existing home on Thomas Street, left, with proposed...

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