Several high-profile business failures are forcing the Halifax Regional Municipality to write off nearly $400,000 in uncollectable taxes.
Staff with the municipality recommended the step in a report to the city's Audit and Finance Standing Committee.
The city is still owed:
- $139,112 from the Halifax Seaport Farmers' Market.
- $61,453 from Nova Scotia Crystal.
- $198,983 from Marener Industries.
The Halifax Seaport Farmers' Market was leasing their premises from the federal Halifax Port Authority, as was Marener Industries. Nova Scotia Crystal was leasing from the Waterfront Development Corporation, a provincial Crown corporation.
The December 2012 failure of the Nova Scotia Farmers Market Co-operative will cost the Halifax Regional Municipality a total of $139,112. The Seaport Market went under owing $10 million. Staff said they were able to secure $200,000 in taxes before the failure. The market has since reorganized and is in operation.
The Halifax Regional Municipality will receive commercial taxes on the facility through the port's payment in lieu of taxes grant.
Nova Scotia Crystal filed for bankruptcy in the spring, owing creditors $1.7 million.
Staff collected $42,000 from the company before the filing. Halifax Glass Works is currently operating Nova Scotia Crystal in the same location on the Halifax waterfront, through a lease with the Waterfront Development Corporation.
According to the staff report, it will be taxed directly by the Halifax Regional Municipality for commercial property taxes.
Marener Industries at Richmond Terminals was placed in receivership, owing creditors $10 million.
"As an unsecured creditor, HRM did not receive any of the realized proceeds of the Marener windup," the staff report states.
The city managed to collect $20,000 before the bankruptcy, but is still owed $198,983.