Debra Sheets is stunned the province is banning short-term rentals years after she bought four units in the Janion building in downtown Victoria to provide what she thought would be a solid foundation for a secure retirement.
The retired UVic nursing instructor said she invested all her money in buying the units and now owes just over $1 million in mortgages.
She sees an uncertain future following the province’s decision to prohibit short-term rentals unless the unit is a principal residence, which is not the case for Sheets.
The planned new rules are among several initiatives the province is bringing forward to help alleviate the ongoing housing shortage.
B.C. is striving to open up thousands of short-term rental units to the long-term market by bringing in new legislation in larger communities by restricting owners holding a number of units from renting them for the short-term unless it is a principal residence.
It is removing a grandfathering clause in the Local Government Act which allowed short-term units to continue operating under a legal non-conforming status because that was their previous use. The province said there are about 1,600 such grandfathered units in Victoria.
Sheets said, similar to many other owners in the Janion, she is not a large corporation. “Most of us are small owners. We are not big organizations.”
She rents a home elsewhere in Greater Victoria and rents out her microloft units via Airbnb.
It is hard work running a short-term rental and is not as lucrative as some think, said Sheets. She’s struggled to make mortgage payments. “It’s not the money-grab that people think it is.”
Apart from looking after her rentals, Sheets spends much of her time volunteering to set up programs and help people dealing with dementia.
“If the goal is to return single-family residences and condo units suitable for long-term housing to the market, why not exempt micro-units like the Janion microlofts from the regulations?” Most of the units are less than 400 square feet.
Size could be used to distinguish condos more suited to short-term stays, she said.
Sheets is reluctant to offer long-term rentals after hearing about difficult tenants and is wondering about selling. She estimates that of the 121 units in her building, about 90 are used as short-term rentals.
Owners make a significant economic investment in the city through fees to the municipality and hiring services, she said.
“Most us live here in Victoria. We’re not absentee landlords.”
Victoria lawyer John Alexander, whose specializes in areas such as land-use law, local government and land title, said his phone is ringing non-stop from owners of short-term rentals, most of them Victoria residents.
The legislation will take away land-use rights from owners who have invested in this province and are not receiving compensation, he said. It takes away certainty about an individual’s economic rights.
“It begs the question, ‘What’s next?’ ”
Alexander wonders if other buildings, possibly detached garages or small office buildings, might be designated for housing to create more residential units.
The most significant and serious change will be to take away a legal non-conforming status, which applies to all other changes in land use, he said.
When a municipality downzones a property that is being used, the owner is allowed to continue that use which is grandfathered (as legal-non-conforming). “That’s the flip side of the sections in the municipal act that says there’s no compensation for downzoning.”
At the municipal level, there’s no compensation because an owner already using the property is permitted to continue that use, allowing for some fairness in the zoning change, Alexander said.
But now the province is saying if someone bought a unit for short-term rental, it can’t be used for that anymore and that owner is not going to get any compensation, he said.
“That’s a first in this province, at least since the mid-1900s.”
A potential court challenge might come because the grandfathering rights are being taken away without compensation, he said.
Owners are telling Alexander they bought short-term rental units specifically for that purpose and have been using them to service rising mortgage payments. They project their income will drop by about 40 per cent.
“They are not going to be able to make their mortgage payments. The mortgage companies are going to be left holding the bag here.”
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
