Should the Town of Newmarket be in the residential landlord business?

Town confirms one employee is currently living in a town-owned house, previously one other employee was a tenant

Yorkregion.com
July 24, 2018
Teresa Latchford

The Town of Newmarket has confirmed one of its employees is living in a town-owned residence.

The employee is living at a Millard Avenue house, which is owned by the town, development and infrastructure commissioner Peter Noehammer confirmed. Previously, a manager with the town resided in the farmhouse on the Stickwood Walker property, also owned by the town.

“(Being a landlord) isn’t something the town is actively seeking,” Noehammer said. “We are not going out and purchasing property for this purpose.”

The question of the town being a landlord came to light when the Newmarket Taxpayers Advocacy Group took to social media to ask the public if they think the town should be in the residential landlord business. The group had filed a Freedom of Information request to confirm there were employees being housed in town-owned homes.

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The property on Millard Avenue was purchased from York Region three years ago to complement the town-owned museum land, which houses the Elman W. Campbell Museum and the old fire hall property adjacent to it, said Noehammer.

Instead of having town staff visit the site every day to ensure the property is maintained and secure, a lease agreement was signed between the town and the employee, then an intern, who was looking for accommodation.

The lease agreement is executed by the chief administrative officer as the authority has been granted by council and does not require council review, he said.

The house was assessed by a third party real estate agent to determine market value rent and any improvements to the property before being occupied would have had to be completed whether someone would live in it or not.

“The tenant is paying rent and is responsible for everyday upkeep like cutting the grass and maintaining the gardens,” Noehammer added. “It was the same with the tenant at the Stickwood property.”

The trade-off is the employee has somewhere to live and the town-owned asset is protected, maintained and generating revenue while the town determines how the property will be used in the future.

Newmarket isn’t the only municipality that uses this practice to provide security on a town-owned property, Toronto has used it often as well, Noehammer explained.

However, NTAG isn’t convinced replacing appliances and collecting rent is in the best interest of the taxpayers as a whole.

Noehammer responded by stating it isn’t a long-term agreement and wording in the lease agreement allows the town to break the agreement when a future use, for example the possibility of a public space on Millard, is determined.

“This really is a case-by-case situation,” he said. “What the town provides is typical of any tenant-landlord agreement.”

When asked why the town is renting the house to an employee rather than using it as transitional housing to help those in need get back on their feet or for newcomers, Noehammer said the town hasn’t explored that option but it could be something to look into in the future.