Caledon mayor accused of conflict of interest over $600,000 loan

Caledon Mayor Allan Thompson voted in matters at Caledon and Peel regional council “where he had a direct or indirect pecuniary interest,” according to new allegations.

Thestar.com
Jan. 20, 2016
By San Grewal

New allegations in an ongoing conflict of interest case against Caledon Mayor Allan Thompson claim he received a $600,000 loan from two developers, and then voted in council to help them secure major residential projects.

The allegations are laid out in an amended conflict of interest application filed Friday with the Ontario Superior Court by the applicant in the case, Caledon resident Kelly Darnley.

Thompson voted in matters at Caledon and Peel regional council “where he had a direct or indirect pecuniary interest,” according to the allegations.

“The respondent borrowed money from a company owned and controlled by two prominent developers, Fieldgate and Greenpark. He proceeded to vote on matters before council on their projects and development levies that were brought forward to council without disclosure of these loans,” the document reads.

The latest allegations against Thompson came forward as a result of his own pretrial cross-examination, during which he was asked to produce the real estate history for his property in Caledon.

The allegations have not been proven in court.

Thompson has previously told the Star that “any allegations of municipal conflict of interest against me would be baseless and without merit.” In an email this week the mayor said the case “is before the courts.” He did not respond to questions about the latest allegations.

He hasn’t yet filed a response with the court to the conflict of interest application.

The application seeks to remove Thompson from office for allegedly violating the Municipal Conflict of Interest Act, which states elected officials are to declare a conflict and remove themselves from voting on matters in which they have a direct or indirect pecuniary interest.

New material filed with the court includes a copy of a promissory note signed by Thompson in September 2007, when he was a Caledon councillor, that states he will pay back $600,000 to Rupee Manor Developments Inc. by April 1, 2019. Another document filed with the court appears to be a mortgage registration in November 2007 that suggests Rupee Manor gave $600,000 to Thompson as a mortgage on land owned by him.

The documents also include a “direction” from Thompson in 2015, when he sold his land. It’s alleged that the direction shows he used the proceeds to pay off the $600,000 loan and the accrued interest, and that Thompson had not been paying the five per cent annual interest charge to that point.

Documents filed with the court include mortgage discharge records for Thompson’s property that, according to the allegations, indicate Rupee Manor’s part owner was Jack Eisenberger, the principal of Fieldgate, and a “Corporate Profile Report” that shows Greenpark president and CEO, Carlo Baldassarra, was also a part owner of Rupee Manor.

Also included are the minutes of council meetings where Thompson voted in favour of development projects proposed by Fieldgate and Greenpark, including a July 2013 meeting at which Thompson voted to approve the Lotus Pointe Subdivision in western Caledon. According to printouts from Fieldgate’s and Greenpark’s websites filed in court, they appear to be two of the developers for this subdivision. Both companies operate a sales centre at the development site.

There are no allegations of any wrongdoing by Greenpark or Fieldgate in the conflict application before the court. They did not respond to requests for comment.

The court application states it was brought forward because of a Star article in June that reported on property documents showing Thompson sold land to developer Primont Homes in April last year for $9.4 million.

The new documents allege Thompson paid off the $600,000 loan and the outstanding interest from the proceeds of the sale.

The original conflict application, filed in July, alleges Thompson “has actively pushed development to the west of the town where he or his family members have a direct or indirect interest in substantial land holdings thereby increasing the value of the lands. In fact the respondent has already profited from the conflict.”

Darnley also filed a concurrent conflict application with the Superior Court against Caledon Councillor Gord McClure. She alleges McClure has voted on development proposals involving property that he and his family own.

The new allegations state McClure, “is a business partner” with Fieldgate, “sharing an interest in a sizable farm.” The documents allege that McClure voted for development proposals by Fieldgate.

In June, he stated: “I have conducted myself to the best of my knowledge and understanding in my role as local councillor. In future, when in doubt I will seek a legal opinion.”

As of Tuesday, McClure had not filed a response with the court to the conflict allegations. He did not respond to questions this week.