Harbourfront's $1.4M debt to the city 'uncollectible,' city report says

One of Toronto's most popular waterfront cultural attractions appears to be having trouble making ends meet.

Harbourfront Centre owes the city about $1.4 million in unpaid rent and property taxes, going back several years.

That's according to a new report to be discussed at Tuesday's meeting of city council's government management committee.

City staff are urging councillors to write off the debts, a position that's backed by Coun. Joe Cressy, who sits on Harbourfront's board. If the write-offs are approved, they still need to go before the full city council next month.

"Either you reduce the level of free community programming one of the jewels of our waterfront provides or we work with with them on a partnership," Cressy said Thursday.

But Deputy Mayor Denzil Minnan-Wong says that since the city pays an annual grant to keep Harbourfront afloat, he'd like to see the non-profit group that runs the site come up with a viable business plan.

He also disagrees with the idea that if its debt isn't forgiven, Harbourfront will have to cut back on the programs it offers to the public.

"We're quite entitled to say to them, 'Whats your plan going forward?'" he said. "And the idea of putting a gun to our heads and saying, 'Well, then, we're going to have to cut programs,' that doesn't sit well with me."

Harbourfront's four-hectare site on the central waterfront includes indoor and outdoor theatres, marinas, performance spaces, boardwalks and art galleries. Millions of people visit every year.

It's run by a non-profit organization, whose board includes three city councillors — including Cressy.  

According to a 2017 city report, it costs about $34 million a year to operate Harbourfront, about two thirds of which comes from fees that Harbourfront charges to the public for things like parking.

The remaining third comes from annual grants supplied by the federal, provincial and municipal governments.

Debt 'uncollectible'

Toronto's share is about $750,000 a year. But it also rents out valuable land to Harbourfront, including a parking lot at 318 Queens Quay W. The city says Harbourfront hasn't paid rent on that property in years, and now owes about $965,000 — a sum the report calls "uncollectible."

And property taxes totalling $427,000 on another Harbourfront parking lot, also on Queen's Quay, are also in arrears, the report states.

Cressy told CBC Toronto the tax arrears happened when the province re-assessed the value of the land it owns, and presented Harbourfront with a bill that it wasn't expecting and couldn't pay.

'Working together for a sustainable future'

"This was an issue on a one-time basis," he said. "Our city's treasurer and general manager are recommending forgiving those back taxes in order to allow free cultural and community programming to take place."

But Minnan-Wong said he wonders why the organization doesn't seem able to sustain itself.

"We've got our own financial problems, and I think Harbourfront has to struggle with this problem and try to make themselves whole."

Harbourfront staff couldn't provide CBC Toronto with an interview on Thursday. But in an emailed statement, spokesperson Mary Landreth wrote: "Harbourfront Centre, the city, and the federal government are working together for a sustainable future that benefits all of Toronto's residents and visitors."