The Town of Ajax has clarified that it had entered into a lease agreement with Durham Distillery to support the establishment of a fully operational, end-to-end distillery (see use and operation excerpt from the lease below).
“… [25 Mill Street] shall be used and occupied only for the purpose of distilling and sale of spirits which includes without limitation the distillation, preparation for sale, bottling and labelling, packing and shipping, the sale (import and export) and marketing of spirits, the barrel aging (and otherwise) and storage of spirits…”
The objective was to support a startup and help grow a local business to strengthen the vitality of Pickering Village, it said.
This partnership was intended to bring long-term economic activity to the area – not simply retail sales, but a fully functioning production facility contributing to local growth, it added.
Here is Durham Distillery’s statement.
Here are some of the town’s answers:
What was the term of the initial lease?
The initial lease term was three years, running from January 1, 2022 to December 31, 2024.
Why did the town move to a month-to-month tenancy in January 2025 rather than renewing for another three years?
The town did not renew the lease due to serious and ongoing non-compliance with the lease agreement.
Specifically:
- The tenant did not meet the core requirement of operating a fully functional distillery as outlined in the lease.
- The facility was primarily used for retail sales, which did not align with the agreed-upon end-to-end distillery operation.
- The tenant’s operations were not in compliance with the Ontario Building Code and the Ontario Fire Code.
- The tenant continued to bring in its product from another small batch distillery location outside of Durham Region.
- Rent and tax payments were inconsistent.
- As of the end of 2025, $30,000 in unpaid rent and taxes is owed to the town.
Throughout the initial term and the month-to-month tenancy in 2025, town staff — including Fire and Building officials —worked with the tenant extensively to support the startup of a small batch distillery, including plans for specialized infrastructure and safety requirements necessary to operate the distillery properly. Despite these efforts, the distillery never materialized.
Given these factors, the town acted responsibly and in the public interest by declining to renew a long-term lease.
Why did the town formally provide legal notice to vacate the premises?
The town issued formal legal notice to the tenant on January 5, 2026, providing the tenant with thirty days to vacate the premises and allow the town to regain possession of the property. This step allows the Town to:
- Protect public assets and taxpayer interests.
- Reassess the facility’s condition and operational readiness.
- Evaluate future opportunities that align with the Town’s economic development objectives.
Did the town confiscate the tenant’s possessions?
No. The town advised the tenant that it may still access the property to retrieve all its possessions, including equipment and products, by making mutually agreeable arrangements to do so.
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