Caledon mayor and councillor involved in $24M worth of land deals

Separate conflict of interest complaints allege Allan Thompson and Gord McClure pushed for development in areas where they owned land.

Thestar.com
Aug. 23, 2015
By San Grewal

Property records obtained by the Star show that Caledon Mayor Allan Thompson and Councillor Gord McClure were involved in separate land transactions worth at least $24 million in the southwest part of the municipality, where they are alleged to have pushed development.

The allegations are raised in conflict of interest complaints filed to the Ontario Superior Court in July. The complaints, made by longtime Caledon resident Kelly Darnley under the Municipal Conflict of Interest Act, allege that in two separate but similar applications Thompson and McClure voted on development decisions at council without declaring a conflict, despite having a pecuniary interest in the matters. The case is set to go before a judge for a first hearing Oct. 13 in Orangeville.

The lands in question are in rural areas, some still in use for farming. If they are approved for development, their value will increase dramatically.

It’s permissible for politicians to buy or sell land in the municipalities where they live, but it is illegal under the act for them to take votes that could result in a financial benefit for themselves or members of their family.

In the case of McClure, property records reviewed by the Star show that he and his family own five parcels of land in the southwest area of Caledon. The purchase or sale of those lands totalled $14,620,000. Four of those parcels are within a proposed 2,000-acre development known as the Alloa lands. These Alloa properties have been proposed as the sites of future housing and commercial developments in Caledon.

With one of the parcels, in 2014, McClure and a company owned by Jack Eisenberger, who owns development company Fieldgate Homes, agreed to share ownership of the land, which is located within the proposed Alloa development, the records show. McClure was paid $7 million.

The issue of the development of the Alloa lands has been before Caledon council.

At an April 14 meeting, councillors voted to fast-track development in an area that includes the Alloa land. Council minutes from the meeting do not make clear whether McClure voted or not.

McClure did not respond to questions sent to him last week.

When asked in June if he voted or should have declared a conflict of interest, McClure 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.”

In the case of Thompson, documents show that he and his family have been involved with land transactions in southwest Caledon.

In an emailed response to questions about where in Caledon he and his family own land, and whether he had declared a conflict when appropriate, Thompson said: “I'm confident that I am not and have not been in a conflict of interest at the Town of Caledon or at the Region of Peel.”

According to documents dated April 20, Thompson sold a parcel of property just west of the Alloa lands to developer Primont Homes for $9.4 million.

In June, Thompson told the Star he participated in votes April 14 at a Town of Caledon council meeting at which councillors directed staff to ask the province to “expedite” release of lands along a proposed transportation corridor where his land was situated. Releasing the lands would open them up to development.

“The bottom line is, in my opinion, I’ve done nothing wrong because it is a provincial initiative and they’re representing my municipality and the other areas that it involves,” Thompson said in June.

Thompson said the land deal with Primont was settled many months before the April meeting.

“Theoretically, I didn’t own the land at that point. Basically everything was firmed in November of last year. The closing was in this April. But the bottom line is, under the Municipal Act, I’ve done nothing wrong. I’m perfectly up and up.”

By “firmed,” he meant a verbal commitment, Thompson said.