Parks Canada commercial rent relief program
Last updated: 12:00 PM EDT on June 22, 2020
The Government of Canada is taking action to protect Canadians and the economy from the impacts of the global COVID-19 pandemic. On June 1, 2020, the Minister of Environment and Climate Change Canada, the Honourable Jonathan Wilkinson, announced a program of rent relief for Parks Canada’s commercial lessees and licensees.
This relief comes in the form of a waiver of 75% of rents for the months of April, May and June, 2020 (or an equivalent amount for annual rents) for eligible commercial lessees and licensees. These relief measures are aligned in principle with the Canadian Emergency Commercial Rent Assistance (CECRA) program.
In order to be eligible, commercial leases and licences of occupation must meet the following specific criteria:
- The lessee/licensee pays gross monthly rent not exceeding $50,000 per property, or gross annual rent not exceeding $600,000 per property, or an equivalent pro rated amount for agreements with terms/periods less than one year;
- The lessee/licensee generates no more than $20M in consolidated gross annual revenues calculated on a consolidated basis (at the ultimate parent level);
- The commercial operation was closed due to provincial or Parks Canada restrictions and/or is experiencing a 70% drop in pre-COVID revenues;
- The lessee/license is still valid (i.e. the agreement was not surrendered/relinquished; and
- The lessee/licensee has availed itself of any insurance proceeds and rental support programs (amounts claimed may be adjusted accordingly).
The following are ineligible for Parks Canada’s Commercial Rent Relief Program:
- Individuals, or entities owned by individuals, holding political office; or
- An individual or entity under criminal prosecution as of March 1, 2020; or
- An individual or entity that has a going concern or solvency issue as of March 1, 2020 and has made any filing for relief or protection under the Companies’ Creditors Arrangement Act (Canada) or any other bankruptcy or insolvency legislation of any jurisdiction; or
- Leases or licences that commence on or after July 1, 2020; or
- Lessees or licensees that are in material breach of their agreement and have been notified by Parks Canada of the material breach on or before April 1, 2020.
If you are a commercial lessee or licensee at a Parks Canada place, you will soon receive documentation outlining the eligibility requirements and application process. This program is accepting applications until August 31, 2020.
For additional information, please contact your usual real property contacts for your business or send an email to email@example.com for assistance.