Wellington North resident Jens Dam is once again requesting answers regarding the handling of a 2011 development charge (DC) bylaw that saw the township lose two Ontario Municipal Board hearings and under-collect charges to the tune of $229,000.
Dam told the Advertiser he is seeking a judicial inquiry into the matter largely as a result of comments made by former Mayor Ray Tout during an all-candidates meeting at Kenilworth Public School in October.
When asked about the recovery of $229,000 worth of deferrals and rebates missing from the development charges reserve fund, Tout made reference to a “gentleman’s agreement” between council and developers.
Errors in the process have been previously explained by the township as a misunderstanding of the Development Charges Act. Council decided in September 2013 not to pursue recovery of the refunds, citing the risk of legal action by developers.
In a 2013 press release the township stated the agreements were made in good faith on the basis of the bylaw that was in place at the time.
“To go back to [developers] now and insist on payment of additional charges would be unfair,” the release stated. “There is no legal precedent that the township is aware of that obligates the township to collect the total amount of development charges it has the ability to collect. The township has discretion and is choosing to use that discretion.”
Dam says past explanations from Tout and the township are insufficient to justify the mismanagement of what he calls “taxpayer dollars” – particularly on the basis of a “gentleman’s agreement.”
On Dec. 10, Dam penned a public letter to council asking them to account for past explanations and conduct a judicial inquiry into the matter.
“None of these explanations constitute an lawful, legal, framework for the $229,000 of taxpayers’ money missing from the development charge reserve fund,” Dam wrote.
“As a taxpayer I request our municipal council call for a judicial inquiry under the Municipal Act into the affairs regarding misappropriation of development charge reserve funds.”
Previously, Dam has filed two Ontario Municipal Board (OMB) appeals against the township, one in 2011 and the second in 2012, concerning its development charge bylaw that lowered the development charge fee of approximately $17,000 to $10,000 as means of boosting growth in the township. Although the bylaw was passed in June 2011, it was written to include all developments since January of that year.
Dam argued such a by-law could not be retroactive and pointed out council did not follow provincial legislation when creating the bylaw, as it failed to conduct a study beforehand.
He won both OMB cases.
The still-unaccounted-for reimbursements given to developers during this retroactive period is the subject of Dam’s latest grievance.
He told the Advertiser $229,000 “cannot just go missing … I don’t know who made the ‘gentleman’s agreements’ but I’d like to see somebody testify on those as to who did what. I basically want to find out who did what in this whole fiasco and I think the rest of the taxpayers also want to know.”
Dam says he intends to pursue the issue until adequate answers are provided.
“This is not something that can just be swept under the rug … there are cheques signed for the money. They know exactly how much money was given away without a proper bylaw in place,” Dam says.
“It has to be resolved … It’s a matter of principle.”
Council has 30 days to address Dam’s letter and if it fails to do so, Dam says he plans to take further action at a higher level.
“If nobody says anything, it will go on and in a democracy, it only works if you have vigilant public,” says Dam.
“There’s a lot of things that go on up there and I think as a taxpayer we need to have answers to that.”
Mayor Andy Lennox told the Advertiser council fully intends to address Dam’s letter during its meeting on Jan. 12, but he cannot really comment on the issue until it is brought before council.
He says seeing the topic brought forward again by Dam was expected.
“I thought the issue was behind us personally, but he’s a concerned citizen and has every right to bring forward the issue and certainly we will deal with it to the best of our ability in January,” Lennox said.
“It’s an issue that has to come before council and council has to make their decision on it and although I have the lead role in that, I shouldn’t speak on behalf of all members of council at this stage.”
Dam has not started any formal legal proceedings on the judicial review, stating he will wait to hear from the township.
