Staff
Town council will have to give further thought as to what to do with the old Rainy Lake Hotel property after no one submitted a tender for it during a tax sale last month.
According to a report from tax administrator Tara Redford, council can decide on any of the following options:
•Write off the taxes and charge back to the school board its proportionate share of the unpaid taxes that are written off (this can be done regardless of whether the council decides to vest the property in the name of the municipality or not);
•Vest the property in the name of the municipality within two years of the tax sale date (Feb. 15). The property then will be tax exempt as is any property owned by the town;
•Once vested, sell the property. However, if the property is vested and then sold within seven years of the registration of the Notice of Vesting, the town will have to pay a proportionate share of the proceeds to the school board and any applicable Crown liens.
If the sale is seven or more years after the Notice of Vesting, the town does not have to share the proceeds;
•Advertise the property for sale within two years. If the taxes have been written off, the town presumably can offer the property at a minimum tender amount that may be more attractive to purchasers.
The town would not have to share the proceeds as that is only required if it vests. However, the current liens on the property still would remain to be paid by the successful bidder.
There currently is four years in tax arrears owing on this property ($163,822.16) as well as the 2011 interim taxes ($10,955.35), and about an additional $3,000 in costs associated with the tax sale process.
As well, a substantial number of liens are registered against this property—close to $1 million.
Redford noted if the property is not vested or re-advertised for sale two years from the tax sale date, the process has to start all over again.
Based on this information, the Administration and Finance executive committee has made several recommendations to council regarding the matter, which council accepted Monday night.
These include:
•including the future of the property as part of the town’s strategic plan discussions to give council the opportunity for input;
•investigating the town’s legal responsibility;
•investigating grant initiatives (such as “Main Street Revitalization” and “Brownfields” programs); and
•investigating demolition, including engaging the town’s contracted engineering firm to provide a report with recommendations for site demolition.
Mine Centre waste
Meanwhile, town council is supporting, in principle, allowing the Ministry of Natural Resources to dispose of waste from Mine Centre in the landfill site here.
Council agreed Monday to direct administration to meet with the MNR to develop terms and conditions to be set out in a binding agreement for the service.
They also agreed the MNR will be responsible for the costs in developing the service agreement, and that administration will submit the service agreement to council for execution once the MNR has determined that this route is the best option for disposing of domestic waste from Mine Centre.
The life expectancy of the current landfill site is 2029, and the property is suitable for expansion to allow another 100-120 years of use.
As reported last month, the MNR, which currently administers the Mine Centre dump, is in the process of closing the existing site and locating a new waste disposal site or an alternative method of managing household waste for the community.
As part of this process, the MNR has asked the town if it would be willing to receive the waste material from a transfer station on an ongoing basis.
The province has asked the MNR to move out of direct delivery of waste management activities.
