A veterans organization in Steveston is $50,000 in tax arrears and has asked Richmond city council for some relief.
Two volunteers from the Army, Navy, Air Force Club 284 on No. 1 Road near Chatham Street approached city council on Monday with their ask, saying tax forgiveness or at least a deferral would help the club after COVID-19 left them without reserve funds.
Walter Cadwallader and Mark Grattan with ANAF 284 noted the club gives out between $30,000 and $50,000 in donations to 30 charities a year.
“We are here to ask council to give us some relief or forgive taxes for the year,” Cadwallader said. “Hopefully, in the worst case, to defer those taxes.”
He noted in Manitoba and Ontario, veterans organizations don’t pay taxes.
“Our motto at the club is ‘shoulder to shoulder,’ and we’d ask the same of you,” Cadwallade said.
Coun. Carol Day questioned whether the club is looking at new management, noting, with the “incredible location” of the club, it seemed they weren’t maximizing it to bring the public in.
The volunteers told city council they have hired a new manager “with a lot of experience and very good reputation,” who starts on Oct. 1 and who they think will turn the business around.
They noted if they could spread the taxes owed over five years, they would be “comfortable.”
The city’s lawyer, Tony Capuccinello Iraci, however, noted non-profits aren’t allowed tax exemptions if they run a commercial business.
“There’s a provision in the community charter which prohibits assistance to business – businesses defined includes activity as well as commercial undertaking and would not be permitted,” Capuccinello Iraci said. “So, when you have non-profits using premises for principal use that is commercial in nature, that’s caught by the prohibition and would not be permitted.”
When asked by Mayor Malcolm Brodie how long they would have to pay off their taxes, Capuccinello Iraci said it’s a maximum period of three years.
During COVID-19, there was provincial legislation that allowed for some tax deferrals, but that no longer applies, Capuccinello Iraci added.
Day suggested city council refer the matter back to city staff to see if there are any other opportunities to help the organization – “a loophole we might have missed.”
She also suggested, given the size of the facility and the need for space in the community, there might be a way the city could use the space as well that might alleviate ANAF’s situation.
“I’m really looking for creative ideas at this point,” Day said.
Coun. Kash Heed echoed Day’s concerns, saying he recognized what ANAF does and how long they’ve been in the community.
“I would really hate to see them have to close their doors – there must be something we can come up with,” he said. “I’m not about to give up on this yet.”
Brodie said, however, if city staff were to work with ANAF to figure out a solution, it would be contingent on their financial books being open to city staff.
Brodie noted the Legion on Bridgeport Road is also asking for help, and things need to be kept “in perspective,” otherwise there could be 50 groups asking for help.
City council voted unanimously to ask city staff to liaise with ANAF to see if they could come up with some other solution to help with their overdue taxes.
