Key Points:

• Properties: Five commercial properties on King Street, Toronto, owned by Claireville Holdings and associates, intended for high-rise mixed-use development.
• Dispute: MPAC assessed the properties based on potential high-rise development value. Claireville appealed, arguing they should be assessed on current use.

Legal Framework:

• Assessment Act: MPAC is responsible for determining the "current value" of properties for taxation.
• Current Value Definition: "The amount of money the fee simple, if unencumbered, would realize if sold at arm's length by a willing seller to a willing buyer."

Proceedings:

• Assessment Review Board Decision: The Board found MPAC did not prove the mixed-use development was the "highest and best use" (HBU) and assessed the properties based on current commercial use.
• Divisional Court Decision: Upheld the Board's decision, stating MPAC failed to meet the burden of proof.

Court of Appeal Decision:

• Jurisdiction: The Court reviews the Divisional Court's application of the law and whether there were legal errors in the Board's decision.
• MPAC's Argument: Claimed the Board erred by presuming current use is the HBU and should have considered recent purchase prices and comparable sales.
• Court’s Analysis: The Board evaluated the evidence and MPAC’s burden of proof correctly. The Board's reliance on current use was due to MPAC's failure to substantiate the proposed HBU.
• Outcome: The appeal was dismissed, affirming the Board's assessment based on current use.

Conclusion:

• Costs: Respondents awarded $15,000 in costs.
• Significance: The case underscores the necessity for MPAC to provide compelling evidence to substantiate HBU claims for property assessments beyond current use.