With the sad announcement that House Of Lords will be closing its doors permanently this October, it makes one wonder about the future of retail on our beloved Bayview Avenue. House Of Lords hair salon is a Toronto landmark, sitting at the corner of Yonge and Isabella for the last 51 years. Owner, Paul Burford, declared on Facebook that he was closing his hair studio due to increasing property taxes. (See his tax bill, posted below)
A CBC article published in June 2017, documented stories of other business owners who are facing property tax increases of as much as 100%. “Sanjoy Kundu, the owner of costume shop Theatrics Plus, is also thinking about calling it quits after nearly 50 years on the block.” “Anderson owns Morningstar Trading, a furniture store between Isabella Street and Gloucester Street. He says he used to pay $5,600 a month for taxes, maintenance and insurance as a tenant in the building, but that’s expected to go up to as much as $9,000 a month.” The Downtown Yonge BIA says the soaring tax bills could result in more vacant storefronts.
Retail tenants are usually responsible for paying rent, utilities, insurance PLUS the property tax on their portion of the building. So, if the taxes are increasing as much as 100%, year over year, then how can small business owners be expected to survive? High commercial rents stripping Queen Street West of its ‘heart,’ merchants warn, published by the CBC in May 2017, outlines the plight of Queen Street West merchants, blaming high rents and high property taxes for increased vacancies.
Every retail strip in the City has been affected. “Neighbourhoods from Ossington to the Danforth are struggling too, said John Kiru, the executive director of the Toronto Association of Business Improvement Areas. He said 2017 is shaping up to be among the worst for shuttered storefronts.” The Yonge Street Small Business Association met Wednesday night to voice their concerns about property tax increases. What will the solution be? Is it property taxes, ambitious landlords or companies like Amazon creating the retail crisis on our streets?
On a happy note, we’ve heard that the vacant space at 1588 Bayview, formerly home to the Elegant Garage Sale, has been leased. Keep checking back with The Bulldog for more details!
