Bakelite can't pay back tax: Contaminated property posing problem for both city and owners, part 2

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\i er me. I « An option, council heard Monday, could be for the city to assume ownership of the property in lieu of the tax bill, which has been outstanding and accumulating penalties since the company closed the plant gates in the 1980s. Toronto lawyer Dennis Trinaistich told council Bakelite and its shareholders, which, he added, are currently paying, Intelligencer file photo by Jeff Mclntosh through devaluing shares, the cost of cleaning up and decomBakelite Thermosets property. missioning the site, are seeking relief from the tax bill from city hall. procedural ball was in the city's Trinaistich said the company "is court. He said he never heard back from insolvent and regrets its inability to pay its taxes" and appeared before the city until papers were served for council Monday after receiving legal legal action. Coun. Wolf Tausendfreund notice of a lawsuit to recover the joined a chorus of councillors in wontaxes. whether negotiations But, said the lawyer, the com- dering pany not only comes to council with shouldn't continue. He proposed Mayor Ross McDouhat in hand, it also comes with a complaint about the estimated gall form a committee of city officials, and council representation to meet, value of its remaining buildings. Trinaistich said the company dis- with Bakelite officials. City treasurer Frank Morrell told putes the amount of assessed value officials with the regional assess- council the lawsuit was the natural ment office have placed on the for- next step for his department aftermer plant's buildings, land and out council, in caucus, had previouslyinstructed staff to pursue the delinbuildings. In particular, the lawyer said he quent tax account. "couldn't see how anyone could walk Trinaistich said it is estimated, through that plant and come up the value of the land on Dundas; with the figure they did." Street East, where the Bakelite) Property assessor Alec Naples plant's hulk is now guarded by a. wrote to treasury officials earlier lone employee, is about $1.5 million^ this month saying the Trenton as- -- the same amount it would cost to» sessment office has listed the value decommission the site, removes of remaining buildings and infra- heavily contaminated soil and de-structure at $670,204. molish the old plant. Under the Municipal Act pertainMcDougall told Tausendfreund[ ing to tax relief in specific and spe- he wonders what council wants himL cial instances, Bakelite had applied to negotiate. for relief under two sections. Under "The problem here," said McDouthe first (Sec. 442), it is seeking re- gall, "is they owe us $900,000 inL lief "due to extreme poverty" and the back taxes... Council is not in the. condition of the property and build- habit of negotiating back taxes. ings. "Now, we can have a lien against As well, Trinaistich says the com- the land, we've been told, if we want pany has a case under another sec- to," said the mayor. "But, we don't tion (443) for relief due to "gross or want it because the land is contamimanifest error in the preparation of nated." the assessment" of the property and Chief administrative officer Robuildings. man Martiuk said council ought not The assessment office denies to enter the arena of negotiating tax there was any such error and stands arrears. He suggested, however, the by its assessment. issue of the company's proposals for Trinaistich and former plant relief under "the (Municipal Act) manager and current Bakelite di- legislation" could serve as a basis for rector Bob Zalkowitz told council the discussion. city and Bakelite had been negotiatCouncil agreed to permit McDouing until last fall, when Zalkowitz gall to carry out meetings with comsaid the company left the bargain- pany officials and report back to ing table with an understanding the council.

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