Iqaluit ordered to issue clear tax certificate for CBC building sale

The CBC can now finalize the sale of its real estate property in Iqaluit, thanks to a court order forcing the City of Iqaluit to issue a clear tax certificate.Justice Sue Cooper signed the order Monday.

According to court documents, the problem dates back to 2005 when the CBC's maintenance contractor, SNC Lavalin, concluded the CBC had been overcharged for water, to the tune of $88,200 between 2001 and 2004.

According to email exchanges between the City of Iqaluit and the CBC, marked as evidence in an affidavit by CBC's real estate director Sylvie Boileau, the city refused to issue a refund, soCBC informed city officials in 2007 it would deduct the $88,200 from grants it gives the city in lieu of taxes (the public broadcaster doesn't actually pay taxes because it's a Crown corporation).

City officials informed the CBC in January 2011 that its records showed those grants which the city applies for were not paid in 2005, 2006 and 2007, to which the CBC reiterated its position that it had been overbilled and deducted the amount from those grants.

According to evidence in Boileau's affidavit, the city applied for its grants between 2012 and 2014, with no mention of outstanding arrears. That was until this year, when a lawyer representing the city demanded payment.

Justice Cooper's ruling doesn't negate the City of Iqaluit's claim for tax arrears. The city may pursue them in another forum, Cooper wrote.

NeitherIqaluit city officials, nor the CBC's real estate and legal departmentswould comment on the matter, both citing legal reasons.

CBC Nunavut moving

The sale of CBC's Iqaluit property is part of the public broadcaster's real estate strategy. The goal is to reduce its real estate footprintby half by 2020, either by selling property, or by moving to a smaller space.

CBC Nunavut's Iqaluit bureau has been in its currentbuilding since 1985. It will be moving to a new buildingacross from Arctic Venturesin about a year.