Top tax tips for real estate investors

Incorporating your property business makes sense when...

Just because you can incorporate, doesn’t mean you should — and vice-versa. Weigh the advice of several professionals – a lawyer, an insurance agent, a lender and an accountant. But be forewarned: they will have different opinions and you will have to sort through that advice to make the decision that’s right for you and your business.

Overall, income from passive sources, including rental income, is initially taxed at the highest rate; about 46 per cent depending on the relevant province. This can be reduced to approximately 20 per cent where dividends are paid to shareholders. Due to the tax-favoured treatment of dividends, these dividends may generate little or no personal income tax, but may be subjected to taxes at the rate of approximately 30 per cent, depending on your income and province of residence. This potentially creates double taxation.

Active income is income from businesses such as retail, restaurants, professional practices, developers and rental income in a corporation with more than five full-time employees amongst associated companies. The first $500,000 of taxable income from these businesses is taxed at the low rate of corporate tax (about 16 per cent, depending on your province, although some provincial limits increase at $400,000).

Beyond the general tax rates, a wide assortment of other tax issues will be revealed during your conversations about incorporation with your accountant. The most important thing to remember here is that your situation is unique and demands a unique approach.

There may be tax implications to refinancing an investment property
When you refinance a property you own personally, the interest you paid on the loan may or may not be deductible. It depends on what you used the funds for. If they were used for personal use, the interest is not deductible. On the other hand, if you used the money for qualified investment purposes, the interest will be deductible. The funds received on refinancing will not, however, be taxable.

In a corporation, these mechanics change. Here, if you take funds out of a corporation, they may be taxable regardless of how you use them. Here is an example of how this works, using a property purchased at $1 million as an example.

•     Purchase price: $1 million
•     A partner pays a down payment of $200,000, plus an extra $50,000 for renovations
•     The original mortgage amount: $800,000
•     Your investment: $ 0

Once renovations are complete, you have the property appraised and your numbers look like this

•     Property value $ 1.5 million
•     New mortgage $ 1.2 million
•     Pay out old mortgage $800,000
•     Cash left: $400,000

Let’s say at this point you meet with your partner and decide you will pay back your partner’s original investment of $250,000, with the balance of $150,000 split between you ($75,000 to each). The original $250,000 being paid to the partner is not an issue. It is paid back on a tax-free basis as that was his original shareholder’s loan. The $75,000 becomes a dividend to each of you. Normally, you would pay tax on this amount.

You may be able to get some corporate taxes refunded as a result of paying these dividends, but talk to your accountant first. It is much easier to make adjustments to business decisions before a transaction takes place.

•     Figure out how to make the mortgage on your home tax deductible

You can make the mortgage on your home tax deductible. Sometimes called the Smith Manoeuvre, the strategy actually takes several forms.

In the basic version of a typical plan, you may have, for example, a house with a value of $200,000. Say the outstanding mortgage on the residence is $120,000. In many situations, it will be relatively easy for you to obtain a mortgage of at least $150,000 on this property (75 per cent loan to value). You could also obtain a mortgage product from various institutions, which allows you to effectively place a mortgage and /or line of credit on the property for $150,000. That would be tracked in at least two segments. In one segment, the bad/non-deductible mortgage would equal $120,000. The good/investment line of credit would be available for the difference between $150,000 and the outstanding “bad” debt, initially $30,000 in this example. As you make payments on the “bad” debt, the amount you have available to borrow and invest with increases — although the total is never more than $150,000.

This means you could invest in real estate, mutual funds, your corporation or other qualified investments and receive a tax deduction for the interest related to the “good” debt. These tax deductions then provide you with more cash flow, which, in turn, can be used to pay off more “bad” debt and increase the “good” debt.

•     Documentation is key to deducting interest

The rules related to interest deductibles can be confusing, but a recent Supreme Court of Canada decision offers some clarification. In January 2009, the Supreme Court confirmed in the Lipson case instances where the interest charges on mortgages for a rental property itself are deductible, as is the interest from other loans, provided certain conditions are met.

One of these conditions relates to maintaining the ability to trace the source of the borrowed funds to an eligible investment. Structuring your financial affairs correctly may allow you to deduct more of your interest costs, thus saving more money.

More specifically, Canadians are allowed to deduct interest charges where they use a line of credit, second mortgage, or separate loan to pay for a portion of a property’s deposit or various operating expenses related to the property. These expenses can include repairs, utilities and property taxes. The key is being able to trace the payments from the line of credit to the property. Ideally, a separate line of credit is used wholly for investment purposes. Where you require a line of credit for personal use, this should be done with a separate account. This ensures you do not mix amounts spent on your vacation or big-screen TV with those related to your investments.

A variety of financial institutions have debt products which allow you a total amount of debt and then divide this total into multiple accounts you have created. Over time, it may also be possible to restructure your debt so that even otherwise non-deductible interest can be converted into fully deductible interest. To make sure you can take advantage of deductible interest, talk to your tax adviser about what you can do to deduct as much of your interest as possible — and in a method that is acceptable to the CRA.

Don R. Campbell is a bestselling author, investor, researcher, and founding partner of the Real Estate Investment Network. This column is an excerpt from his book, 81 Financial and Tax Tips for the Canadian Real Estate Investor: Expert Money-Saving Advice on Accounting and Tax Planning.

Simcoe County - Simcoe Grey Shoebox Project for Shelters

The Shoebox Project was founded in 2011 by four sisters-in-law-Caroline Mulroney Lapham and Jessica, Vanessa and Katy Mulroney. We were looking for a hands-on way to give back in our community.  We asked our friends to fill a shoebox with little luxuries that they would enjoy, to decorate the box and drop it off to us.  We delivered our gift boxes along with the hundred others we received to more women that we could have expected.  Through word-of-mouth, and social media, we have grown in a big way! It is our hope that we are able to brighten the days of women living in our country's shelters and let them know that their community does care about them.

We also hope that those people who have been inspired to participate will gain a deeper understanding of abuse, poverty and mental illness - all factors contributing to women's homelessness in North America. The Shoebox Project collects and distributes gifts in the form of shoeboxes to women in shelters in the United States and Canada. 

SIMCOE COUNTY SHOEBOX PROJECT

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THANK YOU VERY MUCH TO OUR COMMUNITY. WE DELIVERED 235 SHOEBOXES TO 12 SHELTERS IN ALLISTON, BARRIE, BRACEBRIDGE, COLLINGWOOD, HUNTSVILLE, MIDLAND, AND ORILLIA. FOR MORE INFORMATION FOR FUTURE PARTICIPATION ON OUR MOTHERS DAY 2015 DRIVE, PLEASE CLICK ON THE CONTACT US LINK OR FOLLOW US ON FACEBOOKSHOEBOXPROJECT.SIMCOE

Celebrating 100 Years of Big Brothers and Sisters - Inaugural Gala

Last night of January 2014 and looked forward to the Big Brothers/Sisters Gala. It was their Inaugural Gala and though they've done other fundraisers in the past, this was an extra special event and celebrating 100 years! 

Betcha didn't know, I had a "Big Sister" when I was a little girl. Was a great opportunity and helped shape me. They were a childless couple and think in some way, we helped each other. Lost touch with her and think would be neat to know how my "Big Sister" is. Her name was Hilary and her husband was Neil. I've googled and searched on Facebook but know they moved out of my old home town a long time ago. Anyway, memories made and very grateful. 

It was definitely good times with good friends. My "tweet" before I left was "Party on and all in the name of charitable Organizations. Life is good 

The night was great. Tara Dawn and Jamie of Chay Today were the esteemed hosts. They're always a delight and such professionals. 

Some fabulous treats, auction items. The auctioneer was the ever-amazing Barb Richards of "A Touch of Class". She always has a way of making things fun and you hardly even know you're spending your hard-earned money away.

So much to mention, at completion of the night and safely home, this was my Facebook status update:

It's 2:30 am and I'm just home now. Phew what a night! The Gala was spectacular! So happy to be part of that and help the Organization. 
Did you know the waiting list to help match the young ladies is really short compared to matching the boy? If you can make some spare time, even if just an hour to shoot hoops or play golf by being a Big Brother or Sister, you'd be AMAZED at the impact that has on these young children as they develop into later years. Think about it - Big Brothers Big Sisters of Barrie and District - or any in your area. 

Thanks to Mayor Jeff Lehman of taking a photo of his lovely wife Jenn, myself and Chief Greenwood chatting. Funny he captured as we were chuckling because our conversation was about the funny/odd stuff our husbands do. Here's his tweet:

 Jenn with @RealtorChicky and Chief Greenwood at tonight's celebration for 100yrs of Big Brothers Big Sisters! pic.twitter.com/rcsWuCzdFF

— Jeff Lehman (@Mayor_Jeff) February 1, 2014

Building Barrie is all about becoming ‘future ready’ — helping the City thrive as the heart of Simcoe County and as its only designated urban growth centre..

Building a Framework that Supports Growth - City of Barrie Posting

Did you know that between 1981 and 2006, Barrie’s population tripled?  Our city grew from a mid-sized community to one of a large urban centre. The rapid pace of growth has slowed somewhat in recent years, but the population continues to climb. It is forecasted that by 2031, Barrie’s population will reach 210,000. This month, Barrie takes another step in building a framework that will support not only this future growth, but also the costs and opportunities that come along with it.

“Our strategy is all about becoming ‘future ready’ — helping the City thrive as the heart of Simcoe County and as its only designated urban growth centre. It’s about moving forward and upward, and realizing Barrie’s inherent potential — both today and tomorrow,” says Eric Hodgins, Growth Management Coordinator.

Under the Provincial Growth Plan, the city of Barrie is to grow to 210,000 people and 101,000 jobs over a 20 year planning period from 2012 to 2031. The City is also required to plan for 40% of this growth as infill and intensification within the former city limits and 60% in the new expansion lands that became part of South Barrie in 2010.

The growth management program strategy is to build a city where everyone has access to safe drinking water, a clean and healthy environment, walkable neighbourhoods, connected communities, and convenient access to transit. The plan has been designed to ensure growth pays for growth to the greatest extent possible.

The end result is a strategy for the City as it moves forward with the development of its downtown and existing built-up areas, the remaining designated greenfield areas, as well as the newly annexed lands located in south Barrie. This strategy will guide and direct population and employment growth within the city to the year 2031 and ensure that Barrie continues to develop as a complete, well-balanced and sustainable community.

The strategy is intended to ensure a complete community with the same levels of service as today that include delivery of safe, clean drinking water, collection and treatment of wastewater and stormwater, and transportation choices for people to move about the city. Other services such as parks, libraries, and emergency services are to be expanded as required to accommodate the needs of new residents.

Furthermore, new development financing tools are being proposed that will allow the City to proceed with the new infrastructure required to support future growth over the next 20 years while adequately managing the risks of infrastructure replacement and maintaining existing levels of service for the residents and businesses of Barrie. However, even with new financing tools, the City will have to continue managing its budget very carefully in the coming years.

Upon approval of the staff’s recommended growth management strategy the results of the fiscal impact analysis will be presented to the development community to begin discussions leading towards financial agreements in accordance with the new Financial Policies Framework. Further information regarding the next steps in the growth management program will be presented in the near future.

For more information, please visit barrie.ca/growth.

Celebrating Women in Business Nominees and Winners in Barrie - Congrats Shannon!

There was enough girl power in the room to keep the lights on.

The seventh annual Women in Business event at the Barrie Country Club – that began with a neighbourhood power outage – was handled with enough aplomb and humour to set the mood for the women's business award ceremony, Thursday.

From a humorous keynote address by the newly minted Barrie Police Chief Kimberley Greenwood, to the quick wit of KOOL FM's Dale Smith as master of ceremonies, the 200 women and men in attendance enjoyed a relaxed, well-organized luncheon and charity auction that raised $7,680 for the Canadian Cancer Society.

“That's the most money we've raised to date for the cancer society,” said Barrie Examiner publisher and event organizer Sandy Davies.

“It is so nice to honour the women in our community, because so many of them work so hard and don't get the recognition for what they've accomplished. I'm glad I don't have to decide who wins the Woman of the Year award – that's a separate committee – because there are so many deserving businesswomen.”

The Woman of the Year award went to Jane DeCola of Brabary on Commerce Park Drive.

DeCola said she was both shocked and honoured by the award.

“Did you not see the list? There are a lot of women here who are very deserving,” DeCola said.

In the business of sizing and selling women's undergarments, DeCola said she started her business more than eight years ago because she was tired of driving to Toronto for the same service.

With several full and part-time staff, DeCola said their mandate is to take the guess work out of bra-fittings and sell quality products.

DeCola is also an avid community volunteer with several charities including Hospice Simcoe, Relay for Life and the Canadian Cancer Society.

Laurie Crosson offered her services as a business coach and said she simply helped DeCola focus in on her own strengths.

“She's so open to assessing her own challenges and finding ways to overcome them, it's wonderful to see her win this award,” Crosson said.

Kathy Currie-Eyres won the Heart & Soul award. She was out of the province, so her daughter accepted the award on her behalf.

And Christina Petsinis of Lakehead University, and a former Innisdale Secondary School student, won the Future Woman of the Year award.

Not only is Petsinis an honour student and recipient of the President's Scholarship, she was also recognized for helping to create the Sportapalooza event at Innisdale for several hundred special needs children.

In her address, Greenwood spoke of being one of 110 women in a mix of 5,000 men at the Metropolitan Toronto Police force when she started more than 30 years ago.

Greenwood said she had many firsts, including the first woman to run the community response unit, the first female staff sergeant to take maternity leave, the first female commander of one of the busiest divisions in Toronto, the first director of the Toronto Police College and the first female chief of police in Barrie.

She spoke of her early years wearing a skirt and a silly cap, having to share the public washroom with prisoners (because there were no women's facilities), as well as working undercover to portray a bank teller and having to tackle a bank robber when he held up the bank.

Yet, as much as she spoke of her early days as an officer, she now believes the “brass ceiling has been smashed” and that policing is an exciting career for women to chose for a profession.

“In my heart, I believe in Canada, decisions are not made on race, not made on gender and not made on culture,” she said. “I used to say I want to make a difference and now I want to be that difference.”

After the power was restored and lunch was served by staff who gave no indication they had been getting by using just gas stoves and generators, auctioneer Scott Ward ran a vigorous auction with items donated by local businesses.

One of the most popular items bid upon was the four-hour tactical unit training experience with the Barrie Police Service that began at $300 and was eventually sold to Shannon Murree of Re/Max Chay for $3,000.

Thanks Barrie Examiner!

Article - Province hasn't made any decision on if Barrie will get a new campus

Ontario's Ministry of Training, Colleges and Universities has not made any decisions about new university campuses, and that includes Barrie.

There's not even a short list of communities where new campuses could be built. The process is still at the planning of policy stage.

“We are developing a policy on the creation of new campuses and the major expansion of existing campuses,” said ministry spokesman Gyula Kovacs. “The new policy will help ensure sustainable growth and innovation in Ontario’s post-secondary education system and is particularly important in this period of fiscal restraint.”

Ontario's Liberal government is running a $15-billion-plus deficit, at last count.

Asked if the province has made any decisions on new university campuses in Ontario, Kovacs' answer was “no.”

It was the same answer about any approved, current funding in any provincial budget to pay for any new university campuses.

“The ministry is continuing to develop a policy to guide major capacity expansions,” he said. “Funding sources for capital investments will be determined at a later date.”

The Liberals promised to build three new Ontario university undergraduate campuses in the 2011 Throne Speech.

A Canadian Press story identified Barrie, Milton and Brampton as sites to be picked, although the province did not confirmed them at the time.

City council asked the province to designate Barrie as a site for the province's next university campus.

“Several communities and institutions have contacted the ministry to request information about the forthcoming policy or to communicate an interest in developing a new campus,” Kovacs said. “However, at this time, no decisions have been made.”

Sudbury-based Laurentian University, which already partners with Georgian College in Barrie, has a 2012-2017 strategic plan which includes a downtown campus here.

With a downtown Barrie campus, Laurentian wants to significantly increase its full-time enrolment, better integrate classroom learning with real-world experience and increase its proportion of international students.

Laurentian has pledged $14 million toward the $60-million campus, as has Barrie city council. The campus requires about 20 acres of land for a 162,000-square-foot facility, with a private student residence and 500 on-site parking spaces for 3,000 students, or 2,500 full-time equivalents.

But the province still needs to pick Barrie as one of the new university campus sites, fund its share of the cost to build it and pay the operating expenses – salaries, benefits, etc.

Source - Bruton - Barrie Examiner

#Barrie - Little Lake Health Centre - Great Facility for Seniors and Dementia, etc

A unique seniors community for Barrie is one step closer to reality after a groundbreaking ceremony, Friday morning.

The $90-million Little Lake Seniors Community and Health Centre will be located on 11 acres of land near Duckworth Street and Cundles Road East. It will feature three integrated buildings, including a community health centre, a retirement residence and an adult/seniors lifestyle condo.

The development will provide a range of living options from independent condos to assisted living along with "exemplary health care" that will optimize seniors’ health and minimize the need for hospital-based care, according to spokeswoman Shannon Puna.

"The health centre (and its) wellness services will focus on keeping our population healthy," she said. "It will be a state-of-the-art, community-based regional health centre and will be geared to seniors' services and people with complex needs. It will be considered a one-stop shop, a centre of excellence, and will integrate all the health and wellness services in one facility."

Puna said the health centre will be closely affiliated with Royal Victoria Regional Health Centre, North Simcoe Muskoka Local Health Integration Network, Georgian College, and Barrie and Community Family Health Team.

"Little Lake Health Centre is led and funded by physicians and partners with strong ties to the local community and unsurpassed dedication and enthusiasm for this project," she said. "This exceptional care model will reduce the need for hospital-based services, allow for a smoother transition from hospital to community, and reduce the duplication of services in hospital and in the community."

The health centre will also have minor surgery, diagnostic imaging, a lab and pharmacy, home health-care services, family doctors, specialists, a health and wellness clinic, rehabilitation facilities as well as chiropractic, optometry and dentistry services, Puna added.

The 160-unit, five-storey retirement home will be located on the far eastern portion of the property. It will also have services for assisted living and comprehensive care for people with dementia.

The centre part of the property will have 250 seniors' condo units, ranging up to eight storeys and focus on independent adults and seniors.

Construction of the health centre is already underway and is expected to be completed by next summer. The retirement home will take 16 to 18 months to complete and the condominiums will be completed last.

Also affecting this area of the city is the $44-million road and highway ramp reconstruction of Duckworth Street and Cundles Road East, along with Highway 400, which has already begun.

Source - Ian Barrie Examiner

PROJECT AT A GLANCE:

• Little Lake Seniors Community and Health Centre is a $90 million development at Cundles Road East and Duckworth Street.
• It will feature three integrated buildings: a community health centre, a retirement residence and an adult/seniors lifestyle condo.
• The Health Centre will have minor surgery, diagnostic imaging, a lab and pharmacy, home healthcare services, family doctors, specialists, a health and wellness clinic, rehabilitation facilities as well as chiropractic, optometry and dentistry services
• The 160-unit, five-storey hight retirement home will also have services for assisted living and comprehensive care for people with dementia

Economic minister unveils growth plans for Simcoe and Muskoka

Some changes on a map should mean more growth and jobs for the area could be in the works after a provincial government announcement in Barrie, Friday.

Minister of Economic Trade and Employment Dr. Eric Hoskins unveiled plans at Barrie City Hall for an expansion of the boundaries of the Southwestern Ontario Development Fund (SODF) and the Eastern Ontario Development Fund (EODF).

Those changes mean that Barrie and the rest of Simcoe County, as well as the District of Muskoka, will be eligible to apply for government money earmarked for creating jobs and growth.

"Businesses, not-for-profit organizations and municipalities in the two regions can now apply to receive support for projects that will create jobs, encourage innovation and attract investment to their local communities," Hoskins said.

Eligible sectors include advanced manufacturing, processing, life sciences, information and community technology, tourism and cultural industries.

"So far, the Southwestern Ontario Development Fund and the Eastern Ontario Development Fund have created and retained more than 27,700 jobs," he said.

Hoskins said the province has committed more than $88 million in regional support to the two funds, leveraging at total investment of more than $837 million.

"Today's announcement is good news for Barrie and all the communities that make up Simcoe County," Barrie Mayor Jeff Lehman said. "The Ontario government's support will now be available in a new way to help our local economies innovate and grow.

"We have a number of programs we've been working on and this is an opportunity for us to apply for funding."

Finally being a part of the SODF is welcome news, he added.

"We didn't think of ourselves as part of the southwest (area of funding). We were surprised we didn't fit in the basket," he said.

Hoskins said the government originally drew up the geographical boundaries for the Southwestern Ontario Development Fund after discussions with stakeholders.

"The government set boundaries that were as broad as possible at the time," Hoskins said. "But since then we have heard loud and clear from municipal leaders like Mayor Lehman, as well as from leaders like Mayor (Graydon) Smith in Bracebridge and across Muskoka.

"We heard that these regions face similar economic challenges as other municipalities that are already included in the northern, eastern and southwestern Ontario regional funds."

Simcoe County Ward Cal Patterson said the SODF money would encourage innovation and attract investment.

"Not only will this help the county's more than 16,000 businesses increase productivity, our communities will be better equipped, allowing them to be competitive and create local jobs," he said. "From plastics to glass manufacturing and pharmaceuticals to aggregate resources, the county's economic base is diverse and growing, and today's announcement will go a long way to ensuring this trend continues."

Source: Barrie Examiner

Residents of a Burton Avenue trailer park who received eviction notices on July 31 are being encouraged to not give up hope.

Barrie Mayor Jeff Lehman encourages them to attend Sept. 23 council meeting

Residents of a Burton Avenue trailer park who received eviction notices on July 31 are being encouraged to not give up hope.

Approximately half of the 225 residents from the trailer park at 196 Burton Ave. attended a meeting at Unity Christian High School, Wednesday night, to discuss their options.

The city has received a rezoning and subdivision plan application for the land for 96 street townhouses with the possibility of 20 walk-up units in a maximum three-storey building.

Ward 8 Coun. Arif Khan, Mayor Jeff Lehman and Simcoe County director of social housing Cathy Kytayko listened to concerns and answered questions from the residents, many of whom are worried the investments in their mobile homes will be greatly reduced or lost altogether.

Dino Melchior, of Melchior Management, has been managing the park for 15 years and said the owners previously turned down several offers to sell the land.

Earlier this year, the option to redevelop the land and evict 86 homeowners was made by the numbered Ontario company Melchior represents.

Melchior told the Examiner recently that he and his associate have forwarded several local mobile-home vacancies to the tenants, as well as looking for a trailer mover to take on the large project and offer a volume discount.

“The removal is strictly the responsibility of the tenants,” Melchior said at the time, adding with the $3,000 cost mandated by the Residential Tenancies Act per unit, they're already spending $270,000 to help the tenants move.

Lehman has stated the the city does not have the power to intervene in a landlord-tenant matter.

But during Wednesday's meeting, he told park residents to keep an open mind and consider all their options.

"We don't have a solution, not yet, and the solutions won't be the same for everyone," Lehman told the crowd. "We need to understand your concerns. The reason we are here is because we want to help. We're morally obligated to help.

"We didn't evict you, but we are here to help you," he added.

Khan told the residents at the beginning of the meeting, "it's going to be emotional and we expect that. You are residents of the city and taxpayers in the city. Your concerns are not falling on deaf ears.

"We get it loud and clear that you don't want to move. We'll assist in any way we're allowed to."

Jim Mallyon, who moved into the trailer park with his wife in June 2012, believes he was misled by the property owners.

"Prior to buying our trailer we asked how long the park was going to there. We were told 25 or 30 years and that it wasn't a problem," he told the panel. "Right now I'm looking for a place to move to. I can't afford to just sit here. It will cost $10,000 to $20,000 to move my unit, depending where I can get it moved to."

Park resident Fleur Ottaway runs the Burton Avenue Mobile Home Owners Coalition and said she believes the trailer park tenants should be allowed to stay, adding the development has yet to be approved.

"The evictions aren't valid until there is an approved plan. The city shouldn't approve (the application)," she said.

Mandy Hillyard, a longtime poverty advocate in Barrie and the county, suggested the residents contact the Community Legal Clinic Simcoe/Haliburton/Kawartha Lakes.

"I don't want to see anyone homeless. There is an answer and the answer is in this room," she told the crowd. "This has been a real good start. There is so much emotion behind everything you're saying.

"I don't want you leave here frustrated, I want you leave here hopeful."

Lehman encouraged residents to attend a Sept. 23 council meeting where the applicant will make his application and members of the public will be able to express their views. The meeting begins at 7 p.m.

He also encouraged them to submit their concerns in writing by contacting the planning departments will their opinions will become of the record regarding the application.

Source: Barrie Examiner

Buying Real Estate In Innisfil? Better read this!

INNISFIL - Hundreds of Innisfil residents will be on the hook for septic inspections.

Some residents are not pleased with the town’s new septic re-inspection program, which was introduced during a recent meeting in Lefroy.

Director of development Don Eastwood was quick to explain the program is provincially mandated.

“This really was not dreamed up in town council,” he said during the meeting. “It wasn’t our choice to have to ramp up a program (and) hire on new staff. Frankly, it’s not everyone’s idea of fun to have your septic system inspected.”

Although the program is required by the province, the government is offering no financial support, which is why the town has decided to make it user-pay and charge each homeowner $129.90 for the inspection. The new re-inspection regulations fall under the Ontario Building Code and give municipalities five years to comply.

The goal is to identify septic systems that could pose a hazard to health and to municipal drinking water systems, and to ensure remediation.

Eastwood told those who attended the meeting that the town has identified more than 1,200 septic systems that fit the criteria — the bulk of them along the Lake Simcoe shoreline, either south of Lefroy or north of Alcona — which will need to be inspected by Jan. 1, 2016.

“It’s going to take us a couple of years to get 1,200 properties inspected,” Eastwood said, explaining that what is planned is a visual inspection only, looking for signs of problems which could include excessive vegetation, odours, liquid discharge, algal growth and “squishy soil.”

Only if problems are found would there be a second inspection and potentially a requirement to repair or replace the system.

“The municipality has the ability to issue an order to ensure those things are corrected,” Eastwood said.

Those residents within the septic re-inspection zones must bring in proof that their septic beds have been pumped out within the past year, provide a drawing showing the position of the system in relation to buildings, wells and property lines, and book the inspection as well as providing payment.

Although there are hundreds of septic systems affected south of Lefroy, only approximately 25 residents attended the meeting and most were not happy with the new program.

Resident Mark Thibedeau told Eastwood that he had installed a new septic system in 2012 at a cost of $20,000.

“I put it in in October (and) haven’t used it and now you’re asking me to get another inspection done?” he asked.

Eastwood was quick to assure residents that systems installed or inspected within the past year would be exempt.

“What’s the penalty for not complying?” demanded another resident.

“It’s going to cost you more than $129.90,” said Eastwood, referring to possible court action.

“Not necessarily,” retorted the resident, blaming both town council and external factors, including the Holland Marsh, for the pollution of Lake Simcoe. “Maybe we should be electing people willing to challenge the government. Go after the people who are polluting Cook’s Bay.”

Eastwood again explained that the province is demanding the re-inspections.

“We really have no choice but to comply,” he said, adding the penalties to the town and to taxpayers for non-compliance would be significant.

There was also resistance to the requirement to have septic beds pumped out within a year.

Property owners argued that those practising good septic-bed care, or using their properties only seasonally, might not need to have their beds or tanks pumped out at a cost of hundreds of dollars.

Eastwood said the goal was to have all systems showing that they had been recently pumped out but acknowledged there may be exceptions.

“We’re prepared to look at exceptions,” he said.

Mayor Barb Baguley and other members of council attended the meeting, and came in for a share of criticism, particularly over the cost of the inspections.

“We don’t have sidewalks, we don’t have sewers. Why do we have to pay that?” a Gilford woman asked of the inspections. “Why should we pay more? You have casino money.”

There were questions over the inspection of holding tanks, tertiary systems that are already inspected annually by a third-party, and even which homes fall within the inspection boundary.

“The one-size-fits-all is a lie, just like panty hose,” Baguley said, adding there should be room for exceptions. “These kinds of one-offs are not the typical situation. There is some flexibility and judgment.”

Thibedeau suggested that the exceptions should be posted on the town website. “That’ll save a lot of phone calls.”

The re-inspection program is another step in a process that was initiated by the Walkerton tainted water-system disaster in an effort to ensure clean drinking water, a process that has also resulted in the Lake Simcoe Protection Plan and Source Water Protection Plans.

The province is requiring municipalities to carry out inspections of all on-site sewage systems within 100 metres of Lake Simcoe and other water bodies that drain into the lake, or that are within identified vulnerable areas near municipal wells.

The meeting ended with informal discussions, as residents spoke with inspectors Andrew Quattrociocchi and Ed Yohanna, other town staff, and politicians.

Eastwood said the goal was to present the program, listen to comments and reassure residents that “common sense will prevail.”

For more information, contact program administrator Terry Joyce at 705-436-3710, ext. 3540, or tjoyce@innisfil.ca, or inspectors Ed Yohanna at ext. 3544 or Andrew Quattrociocchi at ext. 3542.

Information packages are also available at the town.

Originally posted Barrie Examiner

Barrie: Residents get official notice to vacate Barrie trailer park

This is where I'm torn. Encourage progress and Development but these people also need affordable housing. Where can they go?

Here's the news article posted in Today's Barrie Examiner.

Frank and Gail Ruffolo have called their 14x55-foot trailer on Burton Avenue in Barrie their home since 2005. The couple and their neighbours now have one year to leave after receiving their eviction notices. The land the park sits on is being redeveloped. MARK WANZEL PHOTO

A large pink hydrangea bush blooms in the tiny little plot of land leased by one of the tenants of the Burton Avenue trailer park who received their eviction notice July 31.

“Where can we go? We don’t know where to go or the cost of moving to where we could go,” Gail Ruffolo said.

As she spoke, thunder rolled across the sky, unintentionally underscoring the fear the seniors felt when considering their eviction notice.

In out of the rain, Ruffolo and her husband proudly showed their mobile home, with its hardwood flooring and decorative wooden moulding Frank designed to border the ceiling.

He’s added foam for insulation under the trailer, in addition to the skirt he wrapped around the base of the trailer where the wheels — if there were any — would be. The Ruffolos are living on a pension after Frank fractured his back, he said.

“I can’t work. And I know these (other tenants) people can’t afford a dime to move. If they’re willing to move the trailer at their expense, fine. But how can the owners do something like this?” he asked.

Dino Melchior, of Melchior Management, who has been managing the park at 196 Burton Ave., for 15 years said the owners previously turned down several offers to sell the land.

“I know they’ve put off this decision several times,” Melchior said. “For the owners, it’s been the most difficult decision of all.”

Yet, the option to redevelop the land and evict 86 homeowners was made by the numbered Ontario company Melchior represents earlier this year.

To date, the city has received a rezoning and subdivision plan application to build 116 townhouses, along with medium-density residential units at 196 Burton, where as many as 225 people live in trailer homes.

At that time, Melchior said if the land is redeveloped, all tenants with land leases will get one year’s notice to vacate and be compensated $3,000 for mobile-home removal, per the Residential Tenancies Act.

The tenants received that letter July 31.

Melchior, and his associate Ender Joseph, said they have gone above and beyond their management responsibilities and forwarded several local mobile home vacancies to the tenants, as well as are looking for a trailer mover to take on the large project and offer a volume discount, instead of having each tenant work out their own more expensive deal to move their units.

“The removal is strictly the responsibility of the tenants,” said Melchior, adding with the $3,000 cost mandated by the Act per unit, they’re already spending $270,000 to help the tenants move.

But tenant Fleur Ottaway, who’s running a grassroots organization going under the name Burton Avenue Mobile Home Owners Coalition, said several other trailer parks in the area only have limited space; not nearly enough to take all 86 homes.

At Hoe Doe Valley, you have to buy the land, she said, and in Angus and Orillia, they only have a few spots available.

“Ours is a pre-fab home, it’s going to cost more than $3,000 to move it,” Ottaway said, explaining the Act was written to help out mobile trailer owners in the early 1990s and prices have sky-rocketed since then.

Ottaway said she’s been quoted about $12,000 to have her home moved, which won’t include any add-ons such as decks, foyers or rooms tenants have added over the years.

“The industry has evolved, but the Act hasn’t,” she said. “Everyone is really upset because the law isn’t really there for us.”

Mayor Jeff Lehman and Coun. Arif Khan say they aren’t taking the news lightly.

“It’s my understanding that the city does not have the power to intervene in a landlord-tenant matter, ie. to delay or prevent an eviction,” Lehman wrote in an e-mail.

“Given that the residents have been given eviction notices, my focus is therefore to assist them in finding an alternative place to live.”

Lehman notes that wait-lists for social housing are long and may not be an immediate answer for the mobile homeowners.

“City council, including myself, must sit in independent judgment of the planning application, and I will do that. But that aside, these residents are my residents, so I am going to do what I can to help them,” Lehman said.

Khan said he, too, contacted the County of Simcoe regarding social housing availabilities, and has approached senior levels of government for an increase in levels of social funding, but has yet to hear back.

He has also agreed to meet with the mobile homeowners and Simcoe County staff next week to explore viable options.

But he points out that the provincial Residential Tenancies Act offers the right of every landowner to file an application to rezone or develop their property in accordance with the Planning Act.

“I don’t blame those who don’t care to differentiate between municipal and provincial jurisdiction. At the same time, from an unemotional perspective, I completely support the property owners’ right to file their application,” Khan wrote in an e-mail.

Khan and Lehman are scheduled to meet with the Burton Avenue tenants Aug. 14 at Unity Christian High School at 25 Burton Ave. at 5 p.m. to discuss their options.

By Cheryl Browne, Barrie Examiner