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Opening comments: More at the end.
To the main Judicial Inquiry page - to the Hazel McCallion page.
Mississauga News - Jul. 8, 2010 - By Louie Rosella - lrosella@mississauga.net
Mayor pushed deal, Inquiry told
Memo. This memo includes handwritten notes about a meeting with Mayor Hazel McCallion. It was introduces as an exhibit at the judicial inquiry.
Supplied photo
Mayor Hazel McCallion desperately wanted a hotel in the City Centre and was putting pressure on one of Canada's largest pension fund operators to get the deal done with her son's company to do just that, the Mississauga inquiry was told today.
The startling revelation was made public Thursday afternoon at Mississauga court during the second phase of the much-publicized judicial inquiry, which is looking into conflict of interest allegations against the mayor.
There was also widespread belief among the key players that the mayor's son, Peter McCallion, was using his mother to get the deal done, the inquiry was told.
Bram Costin, a lawyer for the former owner of the property in question, testified the land deal negotiations that eventually sparked the conflict of interest allegations were triggered to satisfy the mayor's desire to build a hotel in the City Centre.
Costin, real estate lawyer for Oxford Properties, a subsidiary of the Ontario Municipal Employees Retirement System (OMERS), said his company entered into negotiations with World Class Developments (WCD) — for whom the mayor's son, Peter McCallion, was a key player — in 2006.
"My understanding was that she (mayor) thought a four-star hotel was needed in the City Centre to enhance the area," Costin told commission counsel William McDowell. "My client wanted to satisfy the City's desire for there to be a hotel in the City Centre area."
The mayor and the City believed a fancy hotel was "important to enhance the City Centre's role as a true, downtown city centre," Costin said.
While being cross-examined by Don Jack, a lawyer representing Alberta Investment Management Corporation (AIMCo), an investment partner with OMERS, Costin said AIMCo executives were leery of the mayor's involvement in negotiations.
"Your clients were concerned about the amount of pressure the mayor was putting on (OMERS and OXFORD) to close the transaction," Costin said.
A conditional deal was in place for OMERS to sell the land to WCD, and in a memo from WCD lawyer Emilio Bisceglia dated Feb. 28, 2008 containing amendments to the agreement of purchase and sale, there are handwritten notes by OMERS president Michael Nobrega stating a "meeting with Hazel" will take place the following month in his office.
The document was part of several filed as exhibits Thursday detailing the intricacies of the proposed deal.
Once WCD owned the land, it would build a four-star hotel run by an international hotel chain, possibly Marriott, and complete with a fitness centre and full-service restaurant, the inquiry heard.
However, the deal fell through when conditions and revisions weren't met.
An Oxford executive sent a letter to OMERS in 2008 as the deal was falling apart, saying, "I don't trust the buyer (WCD) and there is no doubt they are using Hazel in this process," but it would be hard to tell her that given her son is involved, inquiry documents show.
The second phase of the inquiry is also probing the role the mayor's son played in the $14.4-million failed bid by WCD to purchase the 3.5-hectare parcel of City Centre land owned by OMERS.
After the WCD deal was terminated, OMERS subsequently sold the land to the City, which, in turn, leased it to Sheridan College.
McCallion and her son are expected to testify during proceedings, which resume July 26.
Meanwhile, commissioner Douglas Cunningham rejected the mayor's attempt to limit the scope of the inquiry and said he'll use a common sense approach in determing whether she committed misconduct.
"Members of City Council are entrusted by those who elect them to act in the public interest. Members of a municipal council must conduct themselves in such a way as to avoid any reasonable apprehension that their personal interest could in any way influence their elected responsibility," Cunningham said in court. "Suffice it to say that members of Council (and staff) are not to use their office to promote private interests, whether their own or those of relatives or friends. They must be unbiased in the exercise of their duties. That is not only the common law, but the common sense standard by which the conduct of municipal representatives ought to be judged."
This story was inadvertently cut off in some editions of The Mississauga News that were distributed to neighbourhoods in the city's south and east ends today. The full text of the story will be published in next Wednesday's edition. We apologize for any confusion.
Comments by others - 15 - to this web-page at time of posting;
The Mississauga Muse
Jul 11, 2010 1:46 PM
Again, because it's important for citizens to go to the Primary Source
check out the full Rogers telecast of the July 8, 2010 Judicial Inquiry at: http://tinyurl.com/2wul3rf and the transcript of the court hearing at: http://tinyurl.com/2w8w897
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The Mississauga Muse
Jul 11, 2010 12:57 PM
Psst. Anyone notice that Mantis' comments are also gone here?
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ComeOn
Jul 9, 2010 10:27 AM
Hazel McCallion Scandal Continues To Grow
Yesterday gave us a peek at where this is headed. Today the Star, Globe, National Post and Mississauga News all have parts of the story running. I am sure to Mantis/McCallion that they heard incorrectly. Blind loyalty to Mayor Hazel McCallion. None of the cost of her lawyers, the Inquiry, the staff time and the other legal reports and services would have been needed if she knew where Peter McCallion's business started and her office of Mayor ended. Blending the two has cost us millions. Thanks Hazel!
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The Mississauga Muse
Jul 9, 2010 9:25 AM
@ Tony Jackson Speaking of Ignored
I like to present both sides of any issue. I've shared articles relating to the Judicial Inquiry written by the Toronto Star, National Post and the Globe. I just want it here for the record that the Toronto Sun hasn't said a peep since 25 Jun 2010 the column, "Jumping from the S.S. Mississauga: Ted Woloshyn". The only reference was "As Mississauga makes its way through this muddle that is the judicial inquiry, en route to what certainly could be its most consequential election ever, one of its longest serving councillors — and strongest allies of Mayor Hazel McCallion — is calling it quits." and then three references against the inquiry. Odd that. Can anyone confirm? I mean about the SunVoid?
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Tony Jackson
Jul 9, 2010 8:43 AM
Ignore Mantis..
t’s obvious that Mantis thrives in the filthy drain of power/evil emanating from “McCallion-Autocracy” in the City Hall. His cheap propaganda bluffs must be ignored.
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pacroust
Jul 8, 2010 10:34 PM
@Muse
Something wrong here. Mantis assured us that only ONE witness implicated the Mayor and that there was NO supporting evidence. Do you think the Star just made this up?
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pacroust
Jul 8, 2010 10:30 PM
Another coincidence?
Both Snap and ConcernedResident are completely confused in exactly the same way about what a homophobe is. I'm sure that's coincidence. They're such an adorable pair. I love them so much.
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The Mississauga Muse
Jul 8, 2010 10:13 PM
@ pacroust
Toronto Star article, "McCallion ‘used’ by son’s company on land deal, inquiry document suggests" Interesting wording, what? http://tinyurl.com/3xnwzfy Stated somewhat in the passive. ;-)
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pacroust
Jul 8, 2010 9:26 PM
Oh snap
Gee, how cute. When Snap gets all flustered he can't type properly. Just like my yummybuns ConcernedResident! A coincidence I'm sure. Give me a kiss Snappy-poo *smooch*
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pacroust
Jul 8, 2010 7:44 PM
Funny fiends
They're so cute. They run around yapping like little puppy dogs that the "Barberites" will start crying any day now when the Mayor is vindicated. We get ONE day of testimony that makes the Mayor look extremely bad, and suddenly it's yap yap yap "one uncorroborated witness" yip yap. Whatever will the Commissioner do now? Yes, the Inquiry took its best shot on the first day of the second phase, before even the Hazel and Peter show. They've got nothing else. It's all good for the Mayor here on in, apparently. I'll be crying any minute now. Boo hoo. Oh, and by the way Mantis *smooch*
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The Mississauga Muse
Jul 8, 2010 6:28 PM
Sorry cut off.
But all it takes is for a lawyer to counter with "It was all just misperception", no?
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The Mississauga Muse
Jul 8, 2010 6:26 PM
@ ComeOn and Tony, now I admit I didn't see today's testimony
But what the news articles are telling isn't what I call "explosive". Okay there's "Mayor Hazel McCallion desperately wanted a hotel in the City Centre and was putting pressure on one of Canada's largest pension fund operators to get the deal done with her son's company to do just that, the Mississauga inquiry was told today." and "There was also widespread belief among the key players that the mayor's son, Peter McCallion, was using his mother to get the deal done, the inquiry was told." So? And documents or emails suggesting pressure. So? People say and write a lot of things. That's not evidence. As for "There was also widespread belief among the key players that the mayor's son, Peter McCallion, was using his mother to get the deal done, the inquiry was told." "widespread belief" isn't evidence either. I admit a regular joe who only earned $60000 as a real estate agent wouldn't get a foot in the door let alone become a "key player" in a $14.4-million high profile land deal. And sure it stinks. But all it
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Tony Jackson
Jul 8, 2010 6:01 PM
The Hazel Loop
Power => Corruption => Money => Power => Corruption => Money =>Power
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ComeOn
Jul 8, 2010 5:46 PM
Hazel McCallion Scandal -- Its Official
Like it needed today to be official but today is explosive. You get that she is calling here there and everywhere on this land deal directing how it is going to be. We need to pick up some smelling salts for the Friends of Hazel. You get that this is not just adding in paragraphs in minutes hoping no one will catch it? This is beyond did I mention hanging out with my sons partners? This trumps politicians receiving money in hotel rooms. This is a multi million dollar scandal that is growing by the hour of testimony. This involves land worth $14.4 million, $20 million in utility ownership, a never built hotel worth a couple hundred million or far far more. Do you get that if they got away with it they would have an asset today worth between $200 and $500 million dollars? This was not a small time deal but a big deal.
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The Mississauga Muse
Jul 8, 2010 5:29 PM
Um. I don't get it.
Quote. "Mayor Hazel McCallion desperately wanted a hotel in the City Centre and was putting pressure on one of Canada's largest pension fund operators to get the deal done with her son's company to do just that, the Mississauga inquiry was told today." And then from the article, "Mayor cries foul at inquiry" [begin] "It doesn't, however, prevent the mayor from attending business meetings and giving advice regarding the City's desires and recommendations, McIntyre said, noting the City hired an outside lawyer to review the case — prior to the calling of the inquiry — who determined the mayor wasn't in a conflict." Did the City's original outside lawyer know about this "startling revelation" and still declared the mayor wasn't in conflict?
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