Creative Co-Location Facilities Property Tax Subclass Designation: Tenant-Based Operating Model

Who can apply

Properties must be designated as a Creative Co-Location Facility by the City of Toronto to be included under the property tax subclass.

Creative enterprises are entities that produce cultural goods or services as defined by the Canadian Framework for Cultural Statistics.

Tenant-based Operating Model

A qualifying property must have creative enterprises as tenants that are charged a below average market rent, that produce cultural goods and/or provide cultural services. Eligible creative enterprises can be either not-for-profit or for-profit entities, depending on which category they belong to, as listed below.

Eligible Creative Enterprises for Tenant-based Operating Model

Either Not-For-Profit or For-profit

1. Heritage and libraries

• Archives
• Libraries
• Cultural heritage
• Natural heritage

2. Live performance

• Performing arts
• Festivals and celebrations

3. Visual and applied arts

• Original visual art
• Art reproductions
• Photography
• Crafts

Not-for-Profit Only

1. Written and published works

• Books
• Periodicals
• Newspapers
• Other published works

2. Audio-visual and interactive media

• Film and video
• Broadcasting
• Interactive media

3. Sound recording

• Sound recording
• Music publishing

Qualifying Property Criteria for Tenant-based Operating Model

A qualifying property is a property in which all the following criteria are met:

Minimum scale/physical space

The property must consist of a physical building (i.e. not a virtual network) with a minimum net rentable area of 10,000 square feet, or minimum net rentable area of 5,000 square feet where the property is owned by the City of Toronto or notwithstanding, houses more than 40 separate tenants that meet the definition of ‘Creative Enterprises’.

Multiple tenants

The property must have a minimum of five distinct, full-time tenants that meet the definition of ‘Creative Enterprises’.

Below average market rent

The qualifying property must have creative enterprises as tenants that produce cultural goods or provide cultural services that are charged below average market rent. Below average market rent is at least 30 per cent lower than the average market net rent for a similar space in the same classification of property as defined by Building Owners and Managers Association (BOMA) standards and in the same neighbourhood.

heritage • Crafts works Lead Leasee: the lead leasee is in charge of operation of the property and oversees all other tenants in the property. They must have a minimum tenure in the property of five years; having existed for at least five years at time of application or continuing for at least five years in the future. If the lead leasee submits the application, the application must have the authorization and support of the property owner, as demonstrated by a letter of support specific to this application.

I. Qualifying Property Checklist

The property must meet ALL the following criteria to be eligible under the Creative Co-Location Facilities Property Tax Subclass. Creative Enterprise tenants are defined by the Canadian Framework for Cultural Statistics, see Guideline section above.

A. Minimum Scale / Physical Space Does the property consist of a physical building (i.e. not a virtual/online network) and one of the following? (Please select the most applicable description).

1. Minimum net rentable area of 10,000 square feet with a minimum of 5 full time

Creative Enterprise tenants.

1. Minimum net rentable area of 5,000 square feet with a minimum of 5 full time

Creative Enterprise tenants, if property owned by the City of Toronto.

1. Minimum net rentable area of 5,000 square feet with a minimum of

40 separate full time Creative Enterprise tenants.

B. Multiple Tenants The property must have a minimum number of tenants that occupy a minimum amount of space.

All must be selected to be eligible.

1. Minimum of 51 per cent of the tenants of the property must be Creative Enterprise

tenants.

1. Creative Enterprise tenants must occupy at least 51% of the property’s net rentable

Area.

A. Criteria for Leased Space (all must be checked to be eligible)

1. The lease holder is a Creative Enterprise.
2. A Creative Enterprise lease holder has/will occupy the space for a minimum of five

years, either up to and/or beyond the point of application.

1. The rent charged for the eligible space within the qualifying property is Below

Average Market Rent (BAMR) (see the Guidelines section for definition).

Leasing this space must also provide Creative Enterprise tenants with benefits that arise from co- location (provided by or through the property owner or landlord, or by groups of tenants as enabled by the landlord).

A minimum of two of the following must be offered to Creative Enterprise tenants for the space they lease to count as “leased space.” Please select all that apply.

1. Free access/use of meeting or conference space
2. Free or subsidized use of photocopier, telephones, fax machines and other office

equipment and technology

1. Demonstrated consolidated buying power for office and other supplies
2. Access to free, tailored, professional development and training
3. Access to subsidized accredited professional services, such as accounting or legal

services

1. Coordinated support for public programming
2. Coordinated marketing initiatives or shared services related to the property's security

systems, cleaning, reception, courier, mail and catering Total net rentable area (square feet):