October 17, 2003
Property tax debtor promises to pay
City may not have to
sell houses to collect arrears
GREG YOUNGER-LEWIS
There's a chance that the City of Iqaluit may get at least some of the almost
$350,000 in unpaid property tax it is owed by a handful of residents without
having to sell their houses.
The Nunavut Court of Justice heard on Oct. 9 that the homeowner who defaulted
on the largest amount of property tax has decided to pursue a bank loan. The
hearing was the first since the city announced it would take its battle to collect
back taxes to court.
The city brought the cases to court after it hit a roadblock last month when
it tried to auction off the houses, two in Iqaluit and one in Apex, but found
it lacked the legal right to do so. Now, the city wants the court to grant the
sheriff the authority to follow through with the sale.
At least one sale may not be necessary, as one long-time homeowner promised
to pursue a loan from the Royal Bank. Celebrated Inuit broadcaster Jonah Kelly
told the court through an affidavit that he was seeking financial backing from
the bank to cover his and his wife's debts to the city, totalling more than
$170,000, according to court documents from mid-September.
The city's lawyer, Charles Thompson, said he agreed "with some reservation"
to accept the request.
"Obviously, the city is concerned about the delay," Thompson said
from Yellowknife. "Having said that, the city would like to resolve this
through payment.
"Obviously, it's a last resort to [go to] a sale."
The court granted the adjournment, based on two conditions from the city. Kelly
must provide proof and status of his loan application, and authorize the bank
to speak with the city about his application.
Justice Robert Kilpatrick adjourned Kelly's case until Nov. 6, with the additional
request that Kelly find a lawyer.
"The city is hoping to resolve this without having to sell your property,"
Kilpatrick said. "[But] the city quite rightly expects to see you do something
about this soon."
Kelly, a long-time journalist for CBC, also asked that the judge order a publication
ban on the proceedings. The request was denied, although the personal financial
information in Kelly's affidavit was protected from public viewing.
A twist also came in the property tax cases of Jetaloo Kakee, and elders Akeeshoo
and Alicee Joamie, when each showed up in court without a lawyer.
Rather than proceed, the court adjourned their cases until Dec. 4 at the request
of Nunavut Tunngavik Inc. The Inuit organization had intervened with a letter
to Justice Kilpatrick, dated the day before the court proceeding.
In the letter, NTI said it was to meet with the representatives of the city
and territorial government "to develop other options, so that these elderly
land claim beneficiaries are not removed from their homes." The letter
said the Joamies and Kakee were served their court notices only in English.
The letter states it was only two days before the court date that the residents
received an Inuktitut translation.
NTI's lawyer, Steven Foulds, wrote that the organization hoped to find lawyers
for the Joamies and Kakee by their next court appearance.
According to court documents from mid-September, the Joamies owe the city almost
$50,000 in backtaxes. Jetaloo Kakee is believed to owe upwards of $140,000.
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