City unable to provide rent abatement

By Chris Jones/The Oshawa Express

City council has rejected two rent abatement requests from Durham Radio Inc. and Gemini Gymnastics.

The two organizations recently sent city hall letters asking for a rent abatement due to the COVID-19 pandemic.

President of Durham Radio Inc. Douglas Kirk wrote to council, asking for the rent abatement for April, May and June, and Gemini Gymnastics asked council if the city could cover 25 per cent of the rent costs.

“This will help us immensely to get through this crisis,” writes Kirk.

However, city staff recommended council decline the request, and current and future requests be advised that the city isn’t able to provide commercial rent assistance.

The city isn’t able to assist, according to the report given to council, because it isn’t eligible for the Canada Emergency Rent Assistance program, and also due to restrictions of the Municipal Act.

According to the report, the Municipal Act says, “A municipality shall not assist directly or indirectly any manufacturing business or other industrial or commercial enterprise through the granting of bonuses.”

The report adds a municipality can’t give or lend any property belonging to the municipality, including money, and also can’t guarantee borrowing.

Under the Municipal Act, Oshawa also can’t lease or sell any property belonging to the municipality at below fair market value, and also can’t give a total or partial exemption from any levy, charge or fee.

When the issue was in front of council, Ward 1 City Councillor Rosemary McConkey queried as to whether or not Gemini Gymnastics and Durham Radio Inc. had been informed the report was on the agenda.

According to Commissioner of Finance Stephanie Sinnott, they were not, which left McConkey “dissatisfied.”

She wondered if Sinnott had looked into what other municipalities were doing to help businesses with rent.

Sinnott explained she was unaware of any municipalities offering rent assistance.

“I read that in the report… But other municipalities are doing things,” McConkey says.

She referred to practices in Thunder Bay and Brampton, but was stopped by Mayor Dan Carter, who notes referring to the two other municipalities had nothing to do with the issue at hand.

However, McConkey took issue with the handling of the two requests.

“I really have an issue with the fact that Gemini Gymnastics… they came to us with a request to try to give some assistance… [and] instead [we] just [sent] them an email that we can’t do anything. I think that we have to send a better message,” she says.

Ward 5 City Councillor John Gray chimed in, stating his belief is that staff provided a “factual report.”

“We’re not resourced to provide that, and luckily the Municipal Act says we can’t,” he says.

The former mayor adds other municipalities will assist in these situations through grants, but in Oshawa it’s a different story.

“If you want to start making handouts, you’re going to make it awfully punishing for the taxpayers,” he says.

While Ward 2 City Councillor Jane Hurst echoed McConkey’s sentiments, the issue carried.