What is the cost of a BIA to local businesses in Willowdale?
To address the second most common question, we would like to provide you with information that may help clarify the levies that businesses will be providing to the BIA, once it is established. It is important to state that a BIA’s levy is not in any way associated with taxes. Rather, the levy of a BIA is based on the assessment carried out by MPAC for each commercial property and is utilized by the BIA Board of Management, made up of local business owners and leaders, to directly support the businesses within the BIA’s boundaries.
We are proposing a levy rate of 0.03 to 0.04 percent per $100 of assessed property value. This will be one the lowest levies by any of the other 83 BIA’s in Toronto. Here are three examples of a levy for businesses of various property values on Yonge Street in the Willowdale area:
Example #1: $400,000 MPAC assessment – Average Office Condo
The average office condo in the area is assessed for $400,000.
Therefore, with a levy of 0.03% to 0.04%, would contribute approximately $120 to $160 per year.
Example #2: $2,000,000 MPAC assessment – Average Yonge St. Storefront
The Average Yonge street store frontage is valued at about $2,000,000 have a few business tenants, among whom the levy will likely be distributed.
A commercial property valued at $2M with a levy of 0.03% to 0.04% would contribute approximately $600 to $800 per year.
Example #3: $50,000,000 MPAC assessment – Lage Highrise Commercial Properties
Among the almost 2,000 businesses in along Yonge Street in Willowdale only a handful of properties are valued at $50M or more. Properties of these size tend to have dozens of business tenants, among whom the levy will likely be shared.
A commercial property valued at $50M with a levy of 0.03% to 0.04% would pay to the BIA approximately $15,000 to $20,000 per year.
There are 13 properties in the proposed BIA area in this category and combined they will contribute over 60% percent to the total budget.