In-Camera Resolution

Bylaw No. 2002

City of Langford Partnering Tax Exemption Bylaw No. 2002

A Bylaw to Grant Partnering Tax Exemption to Langford Climbing Inc.

WHEREAS Council may, by bylaw pursuant to section 224(2)(d) of the Community Charter, exempt land owned by a local authority from taxation for the purposes of supporting a corporation using the land for a purpose in relation to which an exemption could be provided if the land were owned by that corporation;

AND WHEREAS Council may, by bylaw pursuant to section 225(2) of the Community Charter, exempt property owned by a person providing a municipal service under a partnering agreement;

AND WHEREAS the City of Langford, Boulderhouse Climbing Inc. (Inc. No. BC1067513), and Langford Climbing Inc. (BC Inc. No. 1214878) signed a partnering agreement dated August 12, 2019, for the service of providing an indoor and outdoor climbing facility and hosting national and international climbing competitions in the City of Langford (the “Partnering Agreement”);

AND WHEREAS the City of Langford and Langford Climbing Inc. signed a lease and operating agreement dated August 12th, 2019 (the “Lease”);

AND WHEREAS a bylaw under section 225 of the Community Charter may provide that in certain circumstances the owner of the property must repay the taxes exempted under the bylaw;

NOW THEREFORE, the Council of the City of Langford, in open meeting assembled, enacts as follows:

1. This Bylaw may be cited as “City of Langford Partnering Tax Exemption Bylaw No. 2002”.

2. The land and improvements used in relation to the service being provided under the Partnering Agreement and Lease being:

• (a) Parcel 1 (being a consolidation of Lots C and E, see FB437476), Sections 80, 81, 86, and 87, Esquimalt District, Plan VIP78546
  PID: 028-682-718; and
• (b) Folio: 01-327-06500077

(Collectively the “Property”)

are fully exempt from the taxable value of the land and improvements imposed under section 197(1)(a) of the Community Charter for the calendar years 2022 to 2031, subject to conditions of the Tax Exemption Agreement attached as Schedule A to this Bylaw.

3. The tax exemption described in this Bylaw is conditional on the Property:

• (a) Being leased or owned by Langford Climbing Inc.; and
• (b) Being used solely for the service as defined in the Partnering Agreement.

4. The maximum term of the tax exemption granted by this Bylaw shall be 10 years.

5. The tax exemption described in this Bylaw is not transferrable to subsequent property owners.

6. The tax exemption provided in this Bylaw takes effect upon execution of the Tax Exemption Agreement for the Property.

7. Once the requirements established under this Bylaw and the Tax Exemption Agreement have been fulfilled, a Tax Exemption Certificate must be issued for the Property in the form attached as Schedule “B” attached to and forming part of this Bylaw.

8. A Tax Exemption Certificate issued for the Property is subject to the condition that all of the conditions set out in this Bylaw and the Tax Exemption Agreement continue to be met.

9. A Tax Exemption Certificate may be cancelled by Council if any of the conditions set out in the Tax Exemption Agreement are not met.

10. If the Tax Exemption Certificate is cancelled during a year in which Langford Climbing Inc. has received a tax exemption, Langford Climbing Inc. shall repay to the City within 30 days of cancellation a recapture amount as described in the Tax Exemption Agreement.

11. If the amount is not paid under section 11, any amount unpaid will bear interest at a rate of 1.0% per month, compounded annually.

12. If any portion of this Bylaw is declared invalid by a court of competent jurisdiction, then the invalid portion must be severed, and the remainder of the Bylaw is deemed valid.

13. Any enactment referred to herein is a reference to an enactment of British Columbia and regulations thereto, as amended, revised, consolidated, or replaced from time to time.

FIRST READING on this day of September, 2021.
SECOND READING on this day of September, 2021.
THIRD READING on this day of September, 2021.
ADVERTISED A FIRST time on this ___ day of ____, 2021.
ADVERTISED A SECOND time on this ___ day of ____, 2021.
ADOPTED on this day of , 2021.

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Presiding Council Member

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Corporate Officer

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Schedule A — Tax Exemption Agreement

Tax Exemption Agreement

THIS AGREEMENT dated for reference the ___ day of __________ 2021 is

BETWEEN:

LANGFORD CLIMBING INC.
#1200 – 1175 DOUGLAS STREET
VICTORIA, B.C. V8W 2E1
(the “Owner”)

AND:

CITY OF LANGFORD
2nd floor, 877 Goldstream Avenue
Langford B.C. V9B 2X8
(the “City”)

GIVEN THAT:

A. The City is the registered owner in fee simple of lands in the City of Langford having a civic address of 1109 Langford Parkway and legally described Parcel 1 (being a consolidation of Lots C and E, see FB437476), Sections 80, 81, 86, and 87, Esquimalt District, Plan VIP78546 PID: 028-682-718 (the “Lands”);

B. The City, the Owner, and Boulderhouse Climbing Inc. signed a partnering agreement dated August 12, 2019 for the service of providing an indoor and outdoor climbing facility and hosting national and international climbing competitions in the City of Langford (the “Partnering Agreement”);

C. The City and the Owner entered into a lease and operating agreement dated August 12th, 2019 leasing the Lands to the Owner (the “Lease”) for the Owner to provide the service as set out in the Partnering Agreement, and such Lands are eligible for a tax exemption within the meaning of section 224(2) of the Community Charter;

D. The Owner owns a building on the Lands with a folio of 01-327-06500077 (this building collectively with the Lands is the “Property”), used for the service as set out in the Partnering Agreement, and such building is eligible property within the meaning of section 225(2)(a) of the Community Charter;

E. The City has adopted “City of Langford Partnering Tax Exemption Bylaw No. 2002” (the “Bylaw”) to provide a tax exemption for the Property to the extent set out in the Bylaw and the conditions established in a tax exemption agreement under section 225(5) of the Community Charter; and

F. The Owner has agreed that it shall be a condition of entitlement to the tax exemption contemplated by the Bylaw that the Owner shall comply with the conditions of this Agreement;

THIS AGREEMENT is evidence that in consideration of the promises exchanged below, the Owner and the City agree pursuant to section 225 of the Community Charter as follows:

1. Exemption Subject to this Agreement – The Owner acknowledges and agrees that the tax exemption for the Property under the Bylaw is subject to strict compliance with the following conditions and that the occurrence of any of the following conditions constitutes an Event of Default: (a) the Property is used, even partially, for a purpose other than the service of providing an indoor and outdoor climbing facility and hosting national and international climbing competitions in the City of Langford (as described in the Partnering Agreement); (b) a default by the Owner under the Partnering Agreement; (c) a default by the Owner under the Lease; or (d) the building on the Lands is sold to another person.

2. Partnering Tax Exemption – Subject to fulfillment of the conditions set out in this Agreement and in the Bylaw, the City shall issue a partnering tax exemption certificate to the British Columbia Assessment Authority entitling the Owner to a property tax exemption in respect of the property taxes due (not including local service taxes) in relation the Property (the “Tax Exemption”) for the calendar year(s) set out in this agreement. The Tax Exemption Certificate shall be substantially in the form of Appendix “B”, which is attached to and forms part of this Agreement.

3. Calculation of Partnering Tax Exemption – The amount of the Tax Exemption in each year shall be equal to 100% of the amount of the municipal property tax imposed pursuant to section 197(1)(a) of the Community Charter.

4. Term of Tax Exemption – Provided the requirements of this Agreement, and the Bylaw are met, the Tax Exemption shall be for the taxation years 2022 to 2031, inclusive.

5. Compliance with Laws – At all times during the term of the Tax Exemption or any renewal term, the Owner shall use and occupy the Property in compliance with all statutes, laws, regulations, bylaws and orders of any authority having jurisdiction and, without limiting the generality of the foregoing, all federal, provincial, or municipal laws or statutes or bylaws, including all the rules regulations policies guidelines criteria or the like made under or pursuant to any such laws.

6. Representations and Warranties – The Owner represents and warrants to the City that the Owner is the Owner of the Property for the purpose of property assessment and taxation.

7. Cancellation – The City may in its sole discretion cancel the Tax Exemption Certificate at any time: (a) on the written request of the Owner; or (b) effective immediately upon delivery of a notice of cancellation to the Owner if any Event of Default occurs.

If such cancellation occurs, the Owner will pay to the City within 30 days of cancellation an amount equal to the total taxes exempted under the Bylaw for that year as if the Bylaw had not been adopted.

8. If the amount is not paid under section 7, any amount unpaid will bear interest at a rate of 1.0% per month, compounded annually.

9. No Refund – For greater certainty, under no circumstances will the Owner be entitled to any cash credit, any carry forward tax exemption credit or any refund for any property taxes paid.

10. Notices – Any notice or other writing required or permitted to be given hereunder or for the purposes hereof to any party shall be sufficiently given if delivered by hand or posted on the Property, or if sent by prepaid registered mail (Express Post) to such party: (a) in the case of a notice to the City, at: CITY OF LANGFORD
    2nd floor, 877 Goldstream Avenue,
    Langford, B.C. V9B 2X8
    Attention: Administrator (b) in the case of a notice to the Owner, at: LANGFORD CLIMBING INC.
    #1200 – 1175 Douglas Street
    Victoria, B.C. V8W 2E1

or at such other address as the party to whom such notice or other writing is to be given shall have last notified the party giving the same.

11. Term – the Owner agrees that Tax Exemption ceases upon the earlier of: (a) at the end of the last year specified in the Bylaw; or (b) the occurrence of an Event of Default or upon the termination of the Partnering Agreement.

12. No Assignment – The Owner shall not assign its interest in this Agreement.

13. Severance – If any portion of this Agreement is held invalid by a court of competent jurisdiction, the invalid portion shall be severed and the decision that it is invalid shall not affect the validity of the remainder of this Agreement.

14. Interpretation – Wherever the singular or masculine is used in this Agreement, the same shall be construed as meaning the plural, the feminine or body corporate where the context or the parties thereto so require.

15. Further Assurances – The parties hereto shall execute and do all such further deeds, acts, things and assurances that may be reasonably required to carry out the intent of this Agreement.

16. Waiver – Waiver by the City of a default by the Owner shall be in writing and shall not be deemed to be a waiver of any subsequent or other default.

17. Powers Preserved – This Agreement does not: (a) affect or limit the discretion, rights or powers of the City under any enactment or at common law, including in relation to the use or subdivision of the Lands; (b) affect or limit any enactment relating to the use or subdivision of the Property or Lands, as applicable; or (c) relieve the Owner from complying with any enactment, including in relation to the use or subdivision of the Property, and without limitation shall not confer directly or indirectly any exemption or right of set-off from development cost charges, connection charges, application fees, user fees or other rates, levies or charges payable under any bylaw of the City.

18. Reference – Every reference to each party is deemed to include the heirs, executors, administrators, personal representatives, successors, assigns, servants, employees, agents, contractors, officers, licensees and invitees of such party, wherever the context so requires or allows.

19. Enurement – This agreement shall enure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written.

Executed by the CITY OF LANGFORD by its authorized signatories:

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Mayor:

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Corporate Officer:

Executed by LANGFORD CLIMBING INC. by its authorized signatories:

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Name:

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Name: