A Whitehorse non-profit organization is asking city council to write off $68,672 it owes because of a contractual obligation, council heard at its meeting on Monday.

The Options for Independence Society of Yukon (OFI) entered into a contract arrangement with the city in 2012 under the city’s Development Incentives Policy. OFI provides services for 14 adults with Fetal Alcohol Spectrum Disorder.

Under the incentive policy, the city agreed to pay the property taxes for 10 years on a major addition OFI undertook to turn a Fourth Avenue duplex into a 14-room facility for 14 adults with FASD.

The contract stipulates if ownership of the property were to change hands or the services were no longer provided during the 10 years, OFI would have to repay all property tax grants received.

OFI is under financial stress because of the mortgage it has to pay on the development.

It was decided in discussions with the Yukon government in November 2019 that the best approach would be to transfer ownership of the property to the Yukon Housing Corp. But OFI would remain as the service provider.

As a result of a proposed change in ownership, OFI would be obligated to repay the seven years of property tax grants it has received, totalling $68,672.

But the non-profit is asking council to waive the debt because it is already under financial stress.

City administration is recommending that council agree to forgive the debt.

Council will vote on the matter at next Monday’s meeting.

While there were concerns raised at last night’s meeting by members of council regarding setting a precedent under the incentive policy for other non-profits, there was also strong recognition about the important work OFI provides for the community.

There was also emphasis on how OFI will continue to provide and manage the services to persons with FASD, even though Yukon Housing would own the building.

“The only reason OFI has decided to relinquish ownership of the property is due to financial hardship associated with mortgage payments,” says a Nov. 13, 2020 letter from OFI to the city.

“Repaying the grants will only make our already financially precarious position worse.”

In its letter, the non-profit laid out several benefits that have resulted from its services.

The facility has been kept at full capacity, and all clients are stable in their placement, it says.

It notes eight are employed and are productive citizens.

None have been negatively involved with the criminal justice system but rather are contributing to the safety and well-being of Whitehorse residents, says the list of benefits included in the letter.

OFI still provides supportive housing to persons with disabilities since the completion of the development in 2014.

“It is also noteworthy that one of our staff received the Mayor’s Award for Outstanding Service in 2016,” says the letter.

City administration pointed out to council Monday that once the change of ownership occurs, there will be no more grants provided under the incentive policy.

It was also pointed out the city would begin receiving payments from the Yukon government in lieu of taxes assessed against the Fourth Avenue property.

The YG, as a senior government, does not pay property taxes but rather provides annual grants to the city in lieu of property taxes.

“Non-profit organizations rely on government grants to undertake the important work they do in the community,” says the administrative report provided to council at its meeting Monday.

“An intent of the (incentive) policy was to ensure that grants provided for supportive housing would benefit local groups providing the services.

“OFI has provided supportive housing for 14 adults with Fetal Alcohol Spectrum Disorder during the eight-year time frame since the development incentives agreement took effect.”