Tory says 'no excuse' for city failing to collect millions from Union Station tenants

Mayor John Tory says there is “no excuse” for the fact that the city appears to have failed to collect close to $10 million owed to it by commercial tenants at Union Station.

Tory made the comment to reporters on Wednesday, one day after the release of a report from the city’s auditor general that revealed that $9.4 million in rent and operating cost recoveries owed by Union Station tenants has not been collected.

The report added that the delayed collection of those funds will cost the city the opportunity to earn an additional $740,000 in interest, even if the money is collected tomorrow.

“I am disappointed in the results of the audit. Whatever the explanation is there can be no excuse for just not collecting rent,” Tory said on Wednesday. “These are scarce dollars that we need to provide childcare, to build more transportation and to provide for the homeless, among many other things we have to do.”

The report says that the city’s real estate division has not properly billed Union Station tenants for their share of operating costs for at least four years.

Furthermore, the report says that staff have been unable to demonstrate that the necessary amount of money was collected from former tenants between 2010 and 2015.

Speaking with reporters following a speech to the Toronto Region Board of Trade, Tory promised to look into why “some people chose not to collect moneys that were due to the city when it was their job” to do so.

“The money should have been collected and I will be looking into that,” he promised.

The report will be debated at a meeting of the city’s audit committee scheduled for Tuesday.