Pelham will consider audit, but not developer’s money
Pelham Mayor David Augustyn will ask his town councillors next week to approve conducting an audit of the financing of its east Fonthill development.
But no money from developers will be used to pay for the study of the town’s plan to finance the recreational facilities, including a twin-pad arena, that have been under scrutiny by regional council for months.
“I’m recommending to council that we do an audit, and I’ve received favourable response from the community about that, but that we don’t accept the money,” Augustyn said referring to a $50,000 cheque Niagara-on-the-Lake developer Rainer Hummel pulled out of his pocket at last week’s Niagara Region audit committee meeting.
Although committee members supported a motion by Port Colborne Coun. David Barrick to endorse Hummel’s offer to pay for the audit, Augustyn said no one endorsed the actual cheque by signing the back of it.
“No one wanted to touch the cheque,” Augustyn said.
“There’s obviously a concern when you stop and think about it. Why would you take money to do this kind of thing — especially something that’s supposed to be independent, thirdparty, above reproach.”
Although Pelham councillors previously approved a motion to refuse to provide the Region with any further information about the development, saying the Region has no jurisdiction in the issue, Augustyn said there is lingering concern within the community that “the only way to kind of clear our name is to do an audit.”
“I think we should do the audit,” he said, adding the probe will focus on the aspects of the project “that Mr. Hummel has honed in on, and some members of the community don’t understand.”
The potential of hiring a third-party consultant to conduct the audit will be discussed at Monday’s Pelham council meeting.
“I’m hopeful that by doing this, a thirdparty will show that what we’ve done is fine, above board and appropriate, and all those things,” he said.
Meanwhile, Augustyn pointed out similarities between the community centre development underway in Pelham and a $20-million debenture approved this week by Niagara’s corporate services committee to finance a similar project in West Lincoln.
“It’s a little bit ironic, and I commend West Lincoln for what they’re doing,” Augustyn said, listing many amenities it will have in common with Pelham’s facility.
“It meets the criteria just like Pelham’s debt did,” he said, adding a recent debenture by Port Colborne was approved “without a peep,” too.
“Some days I feel like people are picking on me,” Augustyn said. “Maybe they’re doing that because I’ve been vocal on some issues, including the NPCA (Niagara Peninsula Conservation Authority). I guess that’s my nature.”
Despite the scrutiny Pelham has received regarding its project, West Lincoln Mayor Doug Joyner said the recreation centre planned for his community “is not in that boat whatsoever.”
“Our business plan was based on the same development charges bylaw that we’ve had for the past four or five years. It’s very conservative,” Joyner said. “We are building upwards of 135 houses in Smithville every year. (The business plan) is based on 15 housing starts.”
And unlike Pelham, which spent about $3 million to purchase property for its facility, Joyner said West Lincoln already owned the land where its facility will be located.
Augustyn said he plans to discuss his concerns about the audit committee motion at next Thursday’s regional council meeting.
“I’m going to certainly vote against it and speak against the idea of taking this money,” he said.
He said the committee’s motion to endorse Hummel’s funding offer calls into question the validity of the political process.
“It grants wealth a greater influence and privilege in deliberations. That’s not how it should be. We should look at things on their own merit as opposed to someone waiving money under somebody’s nose,” he said.
Calls to Hummel were not returned Thursday.
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