How can cultural hubs and organizations such as Akin be supported at the federal level? By changing the rules and focusing on leasing incentives, questioning tax benefits, and facilitating access to unused government-owned property.
We have three suggestions for serious consideration.
The first is “meanwhile leases”. In the U.K., a government-led initiative of meanwhile leases has been promoted since 2009. These are leases of dormant commercial spaces that accommodate non-profit renters at cost, in return for significant property tax breaks or other considerations to the owners. In the U.K., non-profit users typically do not pay rent at all and are simply responsible for covering the cost of utilities and any improvements to the space. This creates more available space for artists, creatives, and entrepreneurs and also a reward for developers, building owners, and realtors: to have their buildings utilized and activated. Both sides benefit and are incentivized.
Secondly, we would like to address the recent development of a “creative co-location property tax” subclass being rolled out across Ontario. We recognize that this change is a step in the right direction, but fewer than 20 buildings in Toronto actually will qualify for the 50% tax break to property owners, which is not passed down to—nor does it directly benefit—the actual creative class itself. Additional barriers include requirements such as the necessity of a minimum of 10,000 square feet of space or a list of more than 40 tenants, as well as an undefined below-market rent. Could a new tax subclass be developed at the federal level that attaches the funding and financial assistance not only to building owners and landlords but to their tenants, as in the U.K.?
Thirdly, we would like to advocate for the government to facilitate more effective processes for the use of vacant government-owned property through the below-market rent policy. The current rules in Toronto make it more difficult than ever for non-profits to access these spaces, including mystery around which spaces are in fact available. Like many others, as a non-profit affiliated with a for-profit, we are automatically barred from access. Even before this, it was nearly impossible for small non-profits to be considered for city-owned properties.
As an example, there is a condo building at 61 Heintzman Street in Toronto that created a city-administered rental space as part of a section 37 agreement mandating that the space would be used to benefit the local community. What happened instead was that a storefront space was created and sat dormant and unused for five years, and, after Akin was deemed ineligible by the city's legal department, it has continued to sit vacant for an additional two years, completely unused. New regulations created at the federal level could require more concrete, useful awarding of budget and space from developments to artists or community groups. City staff could work to facilitate the communication and successful usage of these types of spaces so as not to squander the opportunities they offer.
Finally, there is a lack of cultural policy to support these initiatives and a need for more gatherings with the purpose of sharing information on this subject. Government should help bring organizations in this field together and facilitate sharing of knowledge and the building of community at local, provincial, and national levels.
We ask for revisions of current legislation to enable Akin not only to flourish in the arts, but to assist individuals and groups across a broader spectrum and to protect, assist, and foster cultural hubs and districts across Canada.
Thank you so much for the opportunity to be here today.