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from Torstar http://www.parentcentral.ca/parent/article/595039
Two Orthodox Jewish schools that rent Toronto school board property owe back rent of nearly $1 million between them, according to documents obtained by the Star.
John Campbell, chair of the Toronto District School Board, said they reached a deal about 10 years ago under which the two groups would pay off the backlog when they bought the buildings.
But twice, he said, the groups have had "cash flow problems" and were unable to complete the purchase.
During that time, Sheila Cary-Meagher, school trustee for Beaches-East York, watched the figures rise. She said "private little schools" tend to be unreliable tenants.
"Three-quarters of a million bucks in back rent. How crazy is that?" she asked.
The unpaid rent highlights the awkward situation faced by the Toronto board, which seeks to gain profit from its properties without evicting private organizations serving those communities. Faced with declining enrolment at schools across the city, the board is currently forced to run about 91 schools that are roughly half empty, which cost money in power and personnel but serve fewer students.
Both organizations are Orthodox Jewish day schools for boys.
Yeshiva Yesodei Hatorah, which rents out Glen Rush Public School near Bathurst St. and Lawrence Ave. W., owes $701,700 in back rent to the board. Yeshiva Bnei Tzion of Bobov owes $251,190 on Champlain Public School, near Bathurst and Wilson Ave.
Campbell said the board prefers not to evict tenants when they are providing a service to a community, but did not rule out evicting non-paying organizations.
"Although we're prepared to be compassionate and fair with our tenants, that does not mean they should feel they are in a position to take advantage of us."
A man at Yeshiva Bnei Tzion, who refused to give his name but identified himself as the director, said the organization has always had trouble making rent. Donors are hesitant to cover operating expenses because they see them as unglamorous, he said. Donors, he added, like plaques.
When asked how an organization that cannot pay its own rent can afford to buy the building that houses it as well as cover more than $250,000 in back rent, he replied: "It's hard to meet the rent but it's not hard to buy a building. ... All donors love giving money to bricks and mortar."
Rabbi Asher Bornstein at Yeshiva Yesodei Hatorah was hesitant to speak in detail about the deal. "There has been a lot of negotiations going on for years ... it's almost over," he said.
The Toronto Lands Corp., a subsidiary of the TDSB that manages the board's property assets across the city, aims to maximize profits from the properties to help fund the board's immense operating costs.
Campbell conceded these two properties are failing to make money when they should, and that property values have decreased almost 15 per cent since the original deal. He said interest lost on the payments is inconsequential.
"Is breaking even on the properties satisfactory? Not really," Campbell said. "If we're not making any profit, if (tenants are) not making money, they're an overall burden on our operating capability, then we might as well turn that land holding into cash."
The board currently rents 48 closed schools to third parties and leases nine to the Catholic school board, according to its 2008-09 annual plan.
Under the agreement, as it was explained to the Star, the two tenants' rent arrears would be added to the actual cost of the buildings in the eventual sale. Campbell, who is also a board member on Toronto Lands Corp., said the schools have given assurances they would be able to fundraise to purchase the buildings outright in the future.
The schools would have to raise money to cover rent they were unable to afford previously and to pay for the buildings' actual costs, which the board would not release, in the middle of an international financial crisis and recession.
Toronto Star
I don't like the idea of selling the land. Surely we can think of more creative ways to take advantage of the buildings/land. Thoughts?
Two Orthodox Jewish schools that rent Toronto school board property owe back rent of nearly $1 million between them, according to documents obtained by the Star.
John Campbell, chair of the Toronto District School Board, said they reached a deal about 10 years ago under which the two groups would pay off the backlog when they bought the buildings.
But twice, he said, the groups have had "cash flow problems" and were unable to complete the purchase.
During that time, Sheila Cary-Meagher, school trustee for Beaches-East York, watched the figures rise. She said "private little schools" tend to be unreliable tenants.
"Three-quarters of a million bucks in back rent. How crazy is that?" she asked.
The unpaid rent highlights the awkward situation faced by the Toronto board, which seeks to gain profit from its properties without evicting private organizations serving those communities. Faced with declining enrolment at schools across the city, the board is currently forced to run about 91 schools that are roughly half empty, which cost money in power and personnel but serve fewer students.
Both organizations are Orthodox Jewish day schools for boys.
Yeshiva Yesodei Hatorah, which rents out Glen Rush Public School near Bathurst St. and Lawrence Ave. W., owes $701,700 in back rent to the board. Yeshiva Bnei Tzion of Bobov owes $251,190 on Champlain Public School, near Bathurst and Wilson Ave.
Campbell said the board prefers not to evict tenants when they are providing a service to a community, but did not rule out evicting non-paying organizations.
"Although we're prepared to be compassionate and fair with our tenants, that does not mean they should feel they are in a position to take advantage of us."
A man at Yeshiva Bnei Tzion, who refused to give his name but identified himself as the director, said the organization has always had trouble making rent. Donors are hesitant to cover operating expenses because they see them as unglamorous, he said. Donors, he added, like plaques.
When asked how an organization that cannot pay its own rent can afford to buy the building that houses it as well as cover more than $250,000 in back rent, he replied: "It's hard to meet the rent but it's not hard to buy a building. ... All donors love giving money to bricks and mortar."
Rabbi Asher Bornstein at Yeshiva Yesodei Hatorah was hesitant to speak in detail about the deal. "There has been a lot of negotiations going on for years ... it's almost over," he said.
The Toronto Lands Corp., a subsidiary of the TDSB that manages the board's property assets across the city, aims to maximize profits from the properties to help fund the board's immense operating costs.
Campbell conceded these two properties are failing to make money when they should, and that property values have decreased almost 15 per cent since the original deal. He said interest lost on the payments is inconsequential.
"Is breaking even on the properties satisfactory? Not really," Campbell said. "If we're not making any profit, if (tenants are) not making money, they're an overall burden on our operating capability, then we might as well turn that land holding into cash."
The board currently rents 48 closed schools to third parties and leases nine to the Catholic school board, according to its 2008-09 annual plan.
Under the agreement, as it was explained to the Star, the two tenants' rent arrears would be added to the actual cost of the buildings in the eventual sale. Campbell, who is also a board member on Toronto Lands Corp., said the schools have given assurances they would be able to fundraise to purchase the buildings outright in the future.
The schools would have to raise money to cover rent they were unable to afford previously and to pay for the buildings' actual costs, which the board would not release, in the middle of an international financial crisis and recession.
Toronto Star
I don't like the idea of selling the land. Surely we can think of more creative ways to take advantage of the buildings/land. Thoughts?
