Saint John wants owners to pay when they let buildings sit empty

Saint John city staff want to persuade the province to give the city more tools to discourage owners from letting their buildings stand vacant.

It was part of a plan presented to city council Monday night designed to repair more older buildings in priority neighbourhoods, one that was passed unanimously.

Coun. David Hickey applauded the report and said it correctly points out flaws in the enforcement process.

"Countless members of our community and experts as well [say] that the process is too clunky, it's too slow and it's ensuring that properties remain vacant and remain unfixed," Hickey said.

Too late by time of tax sale

Hickey said that once a property reaches the stage of being forced into a tax sale, it has usually deteriorated to the point where it can't be repaired.

City staff want the city to lobby the province for the introduction of a vacancy tax placed on vacant buildings. 

Municipalities in British Columbia and Ontario have used the tax idea to some success, but New Brunswick municipalities don't have the power to tax vacant buildings at a higher rate.

The report also suggests the vacancy tax likely wouldn't be based on assessed property values, because many derelict buildings have such a low assessment.

Instead, it recommends a flat rate.

The other proposed option is a vacant building permit.

Other cities have tried the system, which would "require property owners to apply annually for a permit to register their vacant building with the City," the report reads.

The owner must meet certain standards before the permit is issued.

In some cities, the permit fees increase each year the building remains vacant, according to the report.

It recommends a fee of between $1,000 and $1,500 for the permit.

But the report is careful to point out "that approximately 10 per cent of vacant building owners do not pay their taxes or water bills and in those cases this fee would likely go unpaid as well."

Council also approved the pursuit of a better tax sale system, one that works more quickly to deal with abandoned buildings.

Right now, the province will not hold a tax sale until there has been a minimum of four years of unpaid taxes.

A survey of demolished buildings in Saint John suggested it often took longer.

Up to 10 years worth of unpaid taxes

"In each case, it is estimated that there were anywhere from 5 to 10 years of outstanding taxes on each property prior to demolition moving forward," the report reads.

"Had these properties been sold at a tax sale earlier, it is possible that demolition could have been avoided."

The tax sale itself can add even more time, if the property does not receive a market value bid.

The province takes ownership of the property, and it can take as long as three years for it to eventually sell.

The city says there are currently 40 vacant lots that once contained buildings the city paid to demolish.

It expects it will take between seven to 10 years for the province to dispose of them.

There is good news in the report.

In 2018, the city was monitoring about 220 vacant buildings. That number is now about 145, and the city is processing about 60 cases a year.

About two-thirds of those buildings are repaired and reoccupied. The rest are demolished.

Hickey did take time to refer to the demolition of 111 King St. E, a heritage home owned by J.D. Irving that was demolished on Monday, just hours before the council meeting.

Council reluctantly approved demolition of the house known as the Brown House, after several years of trying to get the company to repair it.

"The more that we can make sure that we are avoiding the 111 King St. East — dare I say it — the more we are avoiding those decisions by this table, the better, because we shouldn't be [making those decisions]," Hickey said.

"We should be ensuring we have processes that are protecting our… buildings."