Le Devoir: whither Mile End?
Le Devoir’s Zacharie Goudreault talks to various observers of the situation in the Mile End, with empty storefronts multiplying on its commercial streets. Among other threads, he touches on the Arts Café situation, saying that the owners told the newspaper this weekend that the café operator had not been able to pay rent for some time and so was told to clear out.
Goudreault also speaks to Danny Lavy, who pleads increased taxes as his reason for the brutal rent hikes that have emptied so many locations. But he also talks to Richard Ryan, who reminds him that city hall froze commercial taxes in the last budget. Lavy’s argument doesn’t hold.
Joey 10:56 on 2021-03-28 Permalink
It’s surprising that neither the Arts Cafe owners or the landlord considered the federal rent subsidy until now; the impression from the Eater story is that the real problem is a lack of communication between tenant and landlord that escalated past a point of no return.
As far as commercial taxes go, both sides may be right. It’s certainly possible that taxes have gone up a lot in recent years before being frozen/reduced in 2020. I’m not totally surprised the stories I’ve read about Welch haven’t bothered to check. If taxes went up say 30% in four years before they were frozen, both Lavy and Ryan would be “accurate.”
Meezly 11:53 on 2021-03-28 Permalink
Municipal taxes for building properties in the past 10 years are accessible to the public here: https://montreal.ca/en/how-to/consult-property-assessment-roll. It was proven that Lavy lied about the SW Welch building and Lavy probably didn’t realize those records are easy to look up. Same for the Arts Cafe – the taxes haven’t increased at all in the last decade. In fact, it has actually decreased.
Kate 11:54 on 2021-03-28 Permalink
Meezly! Thank you!
Joey 13:39 on 2021-03-28 Permalink
What? The roll says taxes for the Welch building were 21K in 2016 and 49K in 2020!
Taxes for the Arts Cafe building were flat (IOW a decline vs. inflation).
Ephraim 14:50 on 2021-03-28 Permalink
Generally space in buildings is rented Net, Net Net or Net Net Net. Net means the renter pays property tax. Net Net means the renter pays property tax and property insurance. Net Net Net means the renter pays property tax, property insurance and in Net Net Net, basically property tax, insurance and maintenance/repairs. Most commercial leases are Net Net, with the landlord responsible for the building. So even if the taxes for the Welch building increased, it wouldn’t really be a concern for the landlord.