THUNDER BAY -- The city is struggling to find a way to help an organization that helps the community.
Our Kids Count took over a building on McKenzie Street from the Regional Food Distribution Association in 2011. The charity assumed that it wouldn't have to pay property tax as the RFDA’s charitable status made it exempt previously.
But the Municipal Property Assessment Corporation disagreed, claiming the group couldn't prove that it only helps those in need.
Chair John Cosgrove said about 90 per cent of the people who use Our Kids Count are in poverty, a lot of them single-parent families. The organization has seen 300 new families come to the community kitchen in the past year alone and overall usage of its food and nutrition programs is up 53 per cent.
"We don't turn anyone away. We don't discriminate because that's our philosophy we have, being inclusive," Cosgrove said.
It’s that turn-no-one-away philosophy that now has Our Kids Count looking at $17,000 in unpaid taxes.
Appealing MPAC's decision is possible, but would cost a lot in legal fees.
City Council is being given three options for Monday night for the future, but Coun. Iain Angus said it's going to be a challenge to deal with the current amount owing.
The city can't give grants to organizations with deficits. It also can't arbitrarily write off taxes owing.
"That's a real challenge because we're very limited in what we can do in regards to taxes," he said.
"In a lot of ways we're restricted by provincial law in what we can do."
"We have to find a solution because not only are they good citizens, they provide really good work for the community and we need to find a way to help them."
As for MPAC's decision, Angus said the city is just adding it to a number of complaints it has with the organization, including reassessing mills and grain elevators. Angus said this is the latest case of MPAC making decisions without considering the impact it will have on a community.
As for Our Kids Count, Cosgrove said the worst case scenario is that the organization has to fundraise even more to make up the difference.
