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Opening comments:  More at the end.
 

To the main Judicial Inquiry page - to the Hazel McCallion page.

Comments by others to this web-page 
- 5 - to this web-page at time of posting.


Mississauga News - July 27, 2010 - By Torstar Network

Mayor an 'emissary' for son's company: lawyer

Peter McCallion is set to testify publicly this morning, a day after a judicial inquiry learned his mother, desperate to bring a hotel and convention centre to Mississauga, picked a "preferred group" that included her son to facilitate the deal.

Years before Mayor Hazel McCallion asked the OMERS pension fund to sell the land for the project to the preferred group, her son had been in talks with Chinese and Korean "financiers" about the scheme, the inquiry was told ysterday.

The discussions went nowhere. But the mayor essentially became an "emissary" for her son's company, vouching for the financial worth of her son's business associates to the reluctant seller, commission lawyer William McDowell said.

McDowell's statements were part of his opening submissions to Justice Douglas Cunningham, who is leading an inquiry that's probing the background to a failed $14.4 million land deal involving World Class Developments, a company associated with the younger McCallion, and a subsidiary of OMERS, a minority shareholder in Enersource, the City's hydro utility.

McDowell's statements illustrated further the complicated web of relationships in Mississauga politics, revealing that David O'Brien, a former city manager who now sits on the OMERS board, is also a trustee in the mayor's family trust.  An earlier phase of the inquiry implicated O'Brien in the issue of how OMERS was granted a controversial veto power in its shareholder agreement for Enersource without city council's knowledge.

These and other revelations prompted McDowell to ask Cunningham whether "a freewheeling system, in which the mayor and all elected officials were free to promote the interests of their friends and relations, would serve the long-term interests of Mississauga."

The inquiry is now looking at the veteran mayor's behind-the-scenes involvement in the land deal while she was publicly declaring a conflict of interest on most occasions when it came up at city council.

McDowell said Peter McCallion's company, at the time of the deal, included Vaughan businessman Tony DeCicco, who replaced a former owner.

"When (OMERS) learned about the change of ownership, the mayor assured them of Mr. DeCicco's financial means," said McDowell, describing how the mayor used "her considerable persuasive powers" to seek concessions from OMERS.

"It is significant ... that Mr. De-Cicco rarely dealt with Oxford (Properties, the OMERS subsidiary) directly, " said McDowell. "Instead, Mr. DeCicco and World Class enlisted the mayor as an emissary."

McDowell said further that McCallion wasn't above making calls to Michael Nobrega, president of the giant pension fund, asking him to cut DeCicco some slack in relation to issues such as deposits that had to be made as part of the conditional land sale.

Such interventions, McDowell said, raise questions about what exactly a mayor's role should be and whether she was in a position of conflict of interest, "having regard to Peter's various (financial) interests in the project."

"Was the process in which the mayor engaged to find her ‘preferred group' adequate and appropriate, having regard to the public importance of building a hotel in the city centre?" he asked.

"Put another way, where the office of the mayor is to be deployed to see (through) a private project with public dimensions ... should there be some requirement for transparency?"

Yesterday's revelations have begun to shed light on how business has been conducted in Mississauga under McCallion.

Her lawyer, Elizabeth McIntyre, said the mayor takes a hands-on approach and has always gotten involved in the nitty-gritty of development issues, including her long-held desire for a world-class hotel and convention centre to be built downtown.

"She did her best for the city and not World Class Developments, " said McIntyre.  "This is a mayor with a long and successful history of promoting development in Mississauga."

McIntyre said McCallion acknowledges, in hindsight, that her actions may have given the impression she was using her influence for personal or family gain, "although we expect the evidence will fully show that her only motivation was to achieve a hotel convention centre in the city."


Comments by others - 5 - to this web-page at time of posting;


Think About It

Jul 27, 2010 7:47 PM

It’s easy to be anonymous assholes eh Mantis/ Common Residence?

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The Mississauga Muse

Jul 27, 2010 6:18 PM

Yeah, MissyNews is reporting this elsewhere.

Peter McCallion sunk in over $100,000 into World Class Developments and then another $50,000 that he had to borrow. MissyNews writes, "Cross-examined by Commission counsel William McDowell, McCallion said he stood to earn between $10-$12 million selling condominium units had his venture been successful." Payout? BIG MONEY and a Big Shot at the same time. I don't know about you but I suspect there'd be plenty of people happy to invest (even borrow) $150,000 for a possible $10-12 million payout if their mom were their emissary-mayor of Hazel's stature. But imagine the desperation when the deal sours and you fear you'll lose your last cent AND what you borrowed and still owe. Like I said, I feel sorry for him.

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The Mississauga Muse

Jul 27, 2010 6:04 PM

@ Suzan

You're absolutely right. Testimony today revealed that David O'Brien approached Peter McCallion to help him with the hotel deal to see what he could do. O'Brien was former City Manager but I still don't know if he was also the McCallion family trustee back then or it happened later. But I now understand why Hazel McCallion (and her four Councillors) did not invite O'Brien to face the music at that Enersource public information meeting. And now we see O'Brien's fingers are also in this hotel thing. So much in way of revelations. To the credit of AIM, they raised concerns about conflict of interest waaaaay before hand. So the developers/investors were hugely wary, but the McCallions seemed oblivious. He stood to make millions on this had it been successful.

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The Mississauga Muse

Jul 27, 2010 5:58 PM

@ Canadians and Suzan HOLY JUMPIN' WOW!

I just got back from my all-day observation at today's hearing. I can summarize it thus. Have said in the past that what I've learned through Freedom of Information about the unethical evil City of Mississauga municipal landscape is just not possible to make up. Well, what I heard in testimony today I would just never believe if someone just wrote it. I mean I'm sitting there, hearing it, seeing the documents and I STILL don't believe it. Including after-hearing fireworks that made my stint at Bay/King for G20 TAME. And get this and please don't go dancing on my head but I feel sorry for Peter McCallion.

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Suzan

Jul 27, 2010 11:24 AM

"David O'Brien, a former city manager who now sits on the OMERS board, is also a trustee in the mayor's family trust."

This is a fairly troubling claim - that the person who was the general manager of the city may have been receiving compensation on a private basis as a trustee from the mayor's family trust - wouldn't that limit his independence?

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Canadians

Jul 27, 2010 10:48 AM

To the Parrish bashers...............

the Mayor is being ID as an 'EMISSARY' for her son's company. How's that for branding? Beats Parrish labels hands down, along with the other FOUR MILLION REASONS why the Mayor is history.

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Canadians

Jul 27, 2010 10:34 AM

What no Mantis or Concerned Resident.... post?

Is the word 'emissary' giving them a little trouble? No rants? Geesh..... it's not the same without having them to rattle!!! A journey of a thousand steps begins with the first one (Chinese proverb) and the journey is now underway............. powerful words such as 'emissary' signage the direction of things to come.

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ComeOn

Jul 27, 2010 10:13 AM

Hazel McCallion Scandal warrants further legal action

The revelations coming out of this Inquiry are far more troubling than the original affadavits ever suggested. I doubt that there is anyone left in the Friends of Hazel land so blind as to look past these startling facts -- except the opportunists desparately running for MPP or Council or king.... whatever.

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The Mississauga Muse

Jul 27, 2010 9:10 AM

For those interested, Peter McCallion's testimony today is on ROGERS at: http://tinyurl.com/33s5c32

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The Mississauga Muse

Jul 27, 2010 8:47 AM

@ Tony, Spudder, Uatu et al

What do you think would've been better for the downtown core? This hotel or Sheridan College?

The Mississauga Muse

Jul 27, 2010 8:46 AM

REPEAT! Lawyers should be required to swear on a Bible too!

[QUOTE] "McIntyre said McCallion acknowledges, in hindsight, that her actions may have given the impression she was using her influence for personal or family gain, "although we expect the evidence will fully show that her only motivation was to achieve a hotel convention centre in the city." [END QUOTE]

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