The city shouldn’t expect to collect any of the nearly $1.4 million a top cultural hub owes in rent and property taxes, says Toronto’s treasurer.

Despite attracting more than three million people a year to the city’s central waterfront, Harbourfront Centre faces rising operating costs, a $16 million repair backlog, no significant increases in support from public funders, declining corporate sponsorships and a lack of charitable donations, according to a staff report to be discussed at Tuesday’s government management committee meeting.

Treasurer Mike St. Amant is recommending council approve writing off Harbourfront’s outstanding $964,335 in rent for the city-owned Queens Quay West property and providing a $427,286 grant to go toward unpaid property taxes, the report said.

If approved, Harbourfront will be required at the end of 2018 to submit a business plan“demonstrating long term financial viability including an ability to pay all current year and future property taxes and debts to the city,” the report said.

The one-time relief will ensure Harbourfront can continue its programming — hosting 4,000 events and 30,000 school visits a year, said Councillor Joe Cressy (Trinity-Spadina), who sits on the board of directors.

“Harbourfront is a completely financially secure and strong organization,” Cressy said.

Part of the reason it is currently struggling to pay its property taxes is because it faced significant and unanticipated increases in recent tax reassessments for its underground parking lot, Cressy said. It is also applying for a charitable rebate, which will reduce its property tax by 40 per cent in future years.

Harbourfront’s annual budget is $34 million, with the city contributing $750,000 and the federal government $5 million, according to a 2017 staff report. About 60 per cent is earned from revenues, primarily from its three parking lots, and the rest comes from foundations, private sponsorship and fundraising.

It is currently working with the city and federal government to come up with a long-term strategic plan, Cressy said.

Harbourfront is anticipating loss of revenue when one of its parking lots (at 318 Queens Quay W.) is converted into parkland later this year, said the report. The parking lot generates about $800,000 a year.

The report notes another pressure is the increased provincial minimum wage, adding $800,000 in labour costs in 2018.

Harborfront centre said it will continue to provide educational, artistic, cultural and recreational programming for Toronto.

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“Under today’s leadership, Harbourfront Centre is focused on the future, and on strengthening an important Toronto organization,” said spokesperson Mary Landreth.

“Together with the city and the federal government, we are working for a sustainable future that benefits all of Toronto’s residents and visitors.”