Parks Canada Rent Relief Extended

Summary#

The Order Amending the Remission Order in Respect of Non-residential Leases and Licences of Occupation Under the Administration of the Parks Canada Agency extends temporary rent relief for businesses that lease land or property from Parks Canada Agency. It increases the covered period to April 1, 2020 through August 31, 2020 and pushes the application deadline to September 14, 2020.

What it does#

• Extends the original rent-remission so that 75% of rent and licence fees paid or payable for the period April 1, 2020 to August 31, 2020 can be remitted for eligible tenants.
• Requires eligible tenants to provide a signed attestation to the Parks Canada Agency no later than September 14, 2020.
• Says tenants who already applied for the April–June period are automatically eligible for the July–August extension; tenants who have not yet applied have until September 14, 2020 to do so.
• The order came into force on the day it was made (made on August 23, 2020).

Who's affected#

• Commercial tenants of Parks Canada Agency sites. That includes 766 commercial agreements and 2 municipal agreements (the Town of Banff and the Municipality of Jasper).
• Mostly small and regional tourism businesses: convenience stores, grocery stores, professional services, golf courses, small and medium hotels, restaurants and similar visitor-facing businesses.
• Fewer than 20 tenants are large corporations (for example major hotel chains and large attractions).
• If it is unclear whether a specific tenant is eligible, the tenant should check with Parks Canada Agency (contact details are in the official notice).

Why it matters#

• It gives short-term financial relief to businesses in parks and historic sites that lost much of their summer revenue because of COVID-19.
• The measure fills a gap left by the federal Canada Emergency Commercial Rent Assistance (CECRA) program, which did not cover tenants who pay rent directly to Parks Canada Agency.
• The government estimates up to $3.8 million could be remitted under this extension.
• For affected businesses this can help cover fixed costs and improve chances of staying open, which also matters to local jobs and tourism in rural and remote communities.