Guest Column Thepec.com
After reading the Spectator article, “Brow lands saga takes another twist,” I was convinced to write an already developing argument about the lack of transparency in this process.
The article explained that Deanlee Management Inc. (owner of the Chedoke brow lands property) was in talks with another business and there was uncertainty if Deanlee was still a part of the process.
A report by the Niagara Escarpment Commission regarding the brow lands, dated March 10, 2009, suggests that “Once the City has made a decision on the applications, and assuming the applications are approved, this applicant will likely sell the property to others for development.”
For a highly credible organization to say this, carries weight. These exact characteristics of Deanlee as mentioned by the NEC, are that of a likely speculator. And the good news for the speculator in this case, the $5 million, 24-acre brow lands deal, has been all reward without risk.
The property was supposedly acquired four years ago, yet Deanlee did not take possession until December 2010. Hospitals such as Hamilton Health Sciences/ Chedoke (former owner of the property) do not pay property taxes; therefore, Deanlee paid no taxes on the property through most of the approval process.
After Hamilton Council approved 450 units in May 2011, Deanlee acquired a “partner” or a potential buyer/developer and their arbitrage gamble paid off.
Does Deanlee still own the property? The actions of “buy, sell and run” are characteristics of a land speculator.
A speculator, as we all know, is in it to make a quick buck and then move on. Historically, speculators are looked upon with a jaundiced eye. Throughout history speculators have caused enormous damage because of their activities and most recently caused the near collapse of our global economic system. This recent damage is not yet fixed, and worse may be yet to come.
Those old enough will remember and have a frame of reference for what happened in the 1970s. Speculators drove up prices and inflation that culminated in interest rates as high as 26 per cent and ensuing global economic crises.
Developers buy land, determine design, building and marketing, obtain the necessary public approvals and financing, build, and lease, manage, and or sell. In other words, developers have skin in the game for the entire process.
But does land speculation (and nontransparency in the brow lands process) fit the Ontario Government’s vision in their Strong Communities Planning Act which “puts the public interest first … (and) give(s) the public a stronger voice?”
The seller and buyer of the brow lands made many promises to the community, which have not (yet) been kept. Chedoke promised that the development project would not happen unless they had the backing of the neighbours, and refused to allow speculation, while Deanlee promised to respect the community’s desire to maintain the character of the community.
Residents never backed this project, speculation has apparently occurred, and Deanlee management has proposed a development ridiculously out of character with the existing community.
The community could have hoped to rely on the Niagara Escarpment Commission, which stated that buildings on the brow could be no larger than “3-4 storeys in height” according to their guidelines. Yet the NEC signed off on Deanlee’s plan for the highest building to be 10 storeys.
Many residents I have spoken to believe the property has been or will be “flipped” and feel defeated and frustrated with this entire process.
But can you blame them? Not only do they feel what they say isn’t credible, but they have been labelled by some (who are not in touch with this community) as NIMBY (not-in-my-back-yard) complainers
This is more than just “not in my back yard.” It’s about the value of this beautiful land to the community and how the community is treated in this process.
When does the community’s input become legitimate?
After four years of this, I ask that this matter be referred back to the community for consultation.
Andrew Knowles lives in Hamilton.
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