REAL PROPERTY REPORTS Fourth Series/Quatri`Eme S´Erie Recueil De Jurisprudence En Droit Immobilier
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REAL PROPERTY REPORTS Fourth Series/Quatri`eme s´erie Recueil de jurisprudence en droit immobilier VOLUME 99 (Cited 99 R.P.R. (4th)) EDITORS-IN-CHIEF/REDACTEURS´ EN CHEF Jeffrey W. Lem, B.COMM., LL.B., John Mascarin, M.A., LL.B. LL.M. Aird & Berlis LLP Davies Ward Phillips & Toronto, Ontario Vineberg LLP Toronto, Ontario QUEBEC EDITOR/REDACTEUR´ POUR LE QUEBEC´ Michael I. Krauss, B.A., LL.L., LL.M. School of Law, George Mason University Arlington, Virginia ASSOCIATE EDITORS/REDACTEURS´ ADJOINTS Reuben M. Rosenblatt, Q.C. Bruce Ziff, B.A., LL.B., M.LITT. Minden Gross LLP Faculty of Law, University of Alberta Toronto, Ontario Edmonton, Alberta Paul De Francesca, B.A.A., LL.B. Craig R. Carter, B.SC., LL.B., LL.M. De Francesca Law Office Fasken Martineau DuMoulin LLP Toronto, Ontario Toronto, Ontario CARSWELL EDITORIAL STAFF/REDACTION´ DE CARSWELL Jeffrey D. Mitchell, B.A., M.A. Director, Editorial Production and Manufacturing Sarah Bourne, B.A., LL.B. Product Development Manager Sharon Yale, LL.B., M.A. Julia Fischer, B.A.(HON.), LL.B. Supervisor, Legal Writing Acting Supervisor, Legal Writing Peter Bondy, B.A.(HON.), LL.B. Jocelyn Cleary, B.A.(HON.), LL.B. Lead Legal Writer Senior Legal Writer Lisa Rao, B.SC., LL.B. Anne Simpson, B.A., M.L.S., LL.B. Senior Legal Writer Senior Legal Writer Bridget Mak, B.A.(HON.), LL.B. Eden Nameri, B.A., LL.B. Legal Writer Legal Writer Martin-Fran¸cois Parent, LL.B., Jackie Bowman LL.M., DEA (PARIS II) Content Editor Bilingual Legal Writer REAL PROPERTY REPORTS, a national series of annotated topical law re- Recueil de jurisprudence en droit immobiller, une s´erie nationale de ports, is published 12 times per year. Subscription rate $361.00 per bound recueils de jurisprudence sp´ecialis´ee et annot´ee, est publi´e 12 fois par ann´ee. volume including parts. Indexed: Carswell’s Index to Canadian Legal L’abonnement est de 361 $ par volume reli´e incluant les fascicules. 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Les analyses The analysis contained herein should in no way be construed as being either comprises dans les pr´esentes ne doivent etreˆ interpr´et´ees d’aucune fa¸con official or unofficial policy of any governmental body. comme etant´ des politiques officielles ou non officielles de quelque organ- isme gouvernemental que ce soit. 8 The paper used in this publication meets the minimum requirements of 8 Le papier utilis´e dans cette publication satisfait aux exigences minimales American National Standard for Information Sciences — Permanence of Pa- de l’American National Standard for Information Sciences — Permanence of per for Printed Library Materials, ANSI Z39.48-1984. Paper for Printed Library Materials, ANSI Z39.48-1984. ISSN 0703-4687 ISBN 978-0-7798-1083-3 Printed in Canada by Thomson Reuters CARSWELL, A DIVISION OF THOMSON REUTERS CANADA LIMITED One Corporate Plaza Customer Relations 2075 Kennedy Road Toronto 1-416-609-3800 Toronto, Ontario Elsewhere in Canada/U.S. 1-800-387-5164 M1T 3V4 Fax 1-416-298-5082 www.carswell.com E-mail www.carswell.com/email REAL PROPERTY REPORTS Fourth Series/Quatri`eme s´erie Recueil de jurisprudence en droit immobilier [Indexed as: BCE Place Ltd. v. Municipal Property Assessment Corp., Region No. 9] BCE Place Limited, 1225209 Ontario Limited, National Trust Company, Scotia Realty Limited, First Place Tower Inc., Toronto Dominion Centre, 200 Bay Holding Inc. (Appellants) and Municipal Property Assessment Corporation and City of Toronto (Respondents) and Atikokan, Brank, Ear Falls, Goderich, Lambton, Lincoln, Ottawa, Quinte West, Red Lake, Sarnia, South Bruce Peninsula and Windsor (Intervenors) Ontario Court of Appeal M. Rosenberg, Robert P. Armstrong, R.G. Juriansz JJ.A. Heard: June 7, 2010 Judgment: October 15, 2010* Docket: CA C51420, 2010 ONCA 672 Richard Poole, David G. Fleet for Appellants, BCE Place Limited, 1225209 On- tario Limited, National Trust Company, Scotia Realty Limited, First Place Tower Inc. Jeff G. Cowan for Appellant, Toronto Dominion Centre Phillip L. Sanford, Tara L. Piurko for Appellant, 200 Bay Holding Inc. Susan L. Ungar, Terry Denison, Rodney Gill for Respondent, City of Toronto Carl B. Davis, Donald G. Mitchell for Respondent, Municipal Property Assess- ment Corporation John L. O’Kane for Intervenor Municipalities Municipal law –––– Municipal tax assessment — Valuation — Method of assess- ment — Market value — Income capitalization –––– Building owners brought applica- tion before assessment review board to determine current value assessments for taxation years 2001 and 2002 for six office tower complexes — Application was granted — Mu- nicipal Property Assessment Corp.’s appeal was allowed — Divisional court found board’s interpretation of current value and fee simple was wrong in law — Divisional court found board’s interpretation was predicated on valuing interest of owner when it was value of land that was to be assessed — Divisional court sent matter to be re-heard *A corrigendum issued by the court on November 9, 2010 has been incorporated herein. 2 REAL PROPERTY REPORTS 99 R.P.R. (4th) by differently constituted panel — Building owners appealed — Appeal dismissed — Di- visional court correctly held that “fee simple, if unencumbered”, in definition of “current value” in s. 1(1) of Assessment Act meant whole value of land, including value of market value leases, was to be assessed — Standard of review was correctness — Matter should be returned to same panel of board, which had already heard evidence and submissions over 62-day period — Office towers should be assessed in accordance with income ap- proach using market rents and allowing for 7 per cent vacancy rate.