The head of Victoria University says he can make peace with the City of Toronto over millions of dollars in forgone property taxes on commercial property in Bloor St.’s “Mink Mile.”

“We are confident that we will able to come up with a resolution that is acceptable to both sides by the September deadline,” William Robins, the English and medieval studies professor who heads the federated college at University of Toronto, told a city committee that Tuesday extended the deadline for negotiations.

Victoria college owns several swaths of extremely valuable land near the university, including property under The Colonnade upscale mall in Yorkville and a luxury condo tower being built on Saint Thomas St.

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Thanks to 1951 provincial legislation that exempts the college’s land from property taxes, even if it is being used for commercial rather than educational purposes, the city receives no revenue for the prime real estate.

City staff estimate the Victoria exemption cost taxpayers $12.2 million between 2009 and 2015. While the city cannot tax the land, it does get revenue for leased commercial buildings atop that land.

The loophole, allowing land under luxury shops including Cartier, Chanel and Escada to go untaxed, has infuriated city councillors facing a widening gap between the city’s revenues and its needs and ambitions.

“On the face of it, it looks like some of the most successful and lucrative retailers are potentially getting a break while we are struggling with our revenues here at the city,” Councillor Janet Davis told Robins.

He did not say if the college or the tenants reap the benefits of tax-free status, but emphasized “we understand and respect the fiscal pressures that the city of Toronto is facing.”

He also added that any solution cannot have an “adverse impact” on the college’s mission or students.

The government management committee voted unanimously to give Victoria and city staff until September to reach a compromise.

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However, if no deal is found, city staff will ask the province to amend the Victoria University Act so that the college pays property tax on its non-educational properties, just as most other Ontario universities do.

The rest of U of T has a legislated exemption similar to Victoria’s but voluntarily pays the city about $240,000 per year in lieu of taxes on its few small commercial properties.