Community Racket Court at Risk After $500K Property Tax Increase
TORONTO, March 19, 2026 /CNW/ - The future of the Fairgrounds Racket Club at 8 Rosehill Avenue is at risk due to a property tax reclassification that dramatically increased taxes on the site after it was temporarily activated as a community recreation space.
The site, located at Yonge and Rosehill, currently serves as a temporary outdoor racket court on land awaiting redevelopment. Instead of remaining vacant or boarded up, the site has been transformed into a public recreational amenity offering pickleball and padel courts, creating a space for physical activity, social connection, and neighbourhood programming.
However, because the courts charge booking fees, the Municipal Property Assessment Corporation (MPAC) reclassified the property from residential to commercial. In Toronto, commercial property taxes are approximately 2.3 times higher than residential rates, resulting in an estimated $500,000 annual increase in property taxes for the site.
As a result, the temporary racket courts cannot continue operating unless a solution is found. Without intervention, the courts will likely need to be removed, and the property will remain vacant until redevelopment proceeds.
"Our goal with Fairgrounds is simple: take sites that might otherwise sit empty and turn them into places where people can play, socialize, and spend time in their neighbourhood," said Drummond Munro, co-founder of Fairgrounds. "Our model focuses on removing the barriers that often come with traditional sports clubs and making racket sports more accessible to the community."
"This site was intentionally activated so it wouldn't sit empty while the development process moves forward," shared Adam Sheffer, Co-Founder of Originate Developments. "Instead of a boarded-up lot, the community gained a place to play, gather, and stay active. Unfortunately, the current property tax system unintentionally penalizes these kinds of temporary uses."
Local business leaders say spaces like the Rosehill courts play an important role in bringing people into neighbourhood commercial districts.
"Activating underused spaces helps create energy and foot traffic that benefits surrounding businesses," said John Kiru, CEO of the Toronto Association of Business Improvement Areas (TABIA). "These kinds of interim uses bring people into neighbourhoods, support local restaurants and shops, and make communities feel more vibrant."
The Yonge + St. Clair BIA says the courts have already had a positive impact on the local area. "Having activity on this site has been a real benefit for the neighbourhood," said Jason Glionna of the Yonge + St. Clair BIA. "People come to play, and then they visit local cafes, restaurants, and shops. It's exactly the kind of activation that strengthens and supports small businesses."
The situation highlights a broader policy issue affecting development sites across Toronto. Under the current property tax framework, vacant development land can retain its residential classification and pay lower taxes. However, activating those same sites with temporary community uses can trigger commercial tax classification and significantly higher taxes.
This creates a perverse incentive: leaving sites vacant is financially easier than activating them for community benefit.
With the condominium market slowing and development timelines lengthening across the city, many properties may remain in transition for extended periods. Without policy adjustments, interim uses that bring life and activity to neighbourhoods may become increasingly difficult to sustain.
Several potential solutions could address the issue, including:
- Creation of an Interim Use Property Tax Sub-Class for lands in transition hosting temporary public or community uses.
- A Community Improvement Plan (CIP) that would allow the City to provide grants to offset property tax increases associated with interim activations.
- Municipal Capital Facility designation, which has been used in Toronto to support certain sports and recreation facilities.
The Fairgrounds Racket Club at Rosehill demonstrates how temporary activations can transform underutilized spaces into vibrant community amenities. Supporters say resolving the property tax issue would allow the site to continue operating while longer-term redevelopment plans move forward.
About Fairgrounds Racket Club
Fairgrounds is a public racket club concept designed to make racket sports more accessible and social, offering pickleball and padel courts in an approachable environment open to players of all ages and skill levels. The Rosehill location functions as a temporary outdoor activation, demonstrating how recreational amenities can animate underutilized urban sites.
More information: https://www.visitfairgrounds.com/
About the Yonge & Rosehill Development
The site at Yonge and Rosehill is planned for a future mixed-use residential development by Originate Developments, contributing new housing supply along the Yonge Street corridor while supporting transit-oriented growth and urban intensification.
More information: https://originate.ca/project/yonge-rosehill/
SOURCE Fairgrounds
Media Contacts: Adam Sheffer, Originate Developments, Phone - 647-222-3116, Email - [email protected]; Drummond Munro, Co-Founder, Phone - 647-627-1977, Email - [email protected]
Share this article