Renters allege council conflict of interest
Lori Coolican, The StarPhoenix
Published: Saturday, April 19, 2008
A handful of Saskatoon city councillors have personal interests in the local market for rental accommodations, prompting some condo conversion opponents to question the motives behind their recent decisions.
"I call that a big conflict of interest," said Martin Been, a tenant of the downtown Milroy Apartments who has taken the city to court over council's approval of a developer's plan to renovate and sell most of the building as high-end condos.
"If you own rental property and you allow conversions, you're securing tenants for the rest of your life. Your place will never be empty."
When rental units are scarce, landlords can also demand higher monthly rents from their tenants, Been said.
At an executive committee meeting earlier this week, a small majority of councillors voted to support a new civic policy that would put a freeze on conversions when the vacancy rate is less than 1.5 per cent. Most cities freeze conversions when their vacancy rate is below three or four per cent.
Council is scheduled to vote on the proposed new policy at its regular meeting Monday, but sources have told The StarPhoenix that some councillors intend to propose an alternative -- a policy that would allow conversions to continue as long as the buildings are small and the vacancy rate is above 0.5 per cent. The current vacancy rate -- 0.6 per cent -- is the lowest on record for Saskatoon.
"We all now know why they have been so happy to convert condos from the start," said homeowner Shannon Christensen, who has been pressing the city to end the ongoing wave of conversions.
"This is indeed a conflict of interest -- they should not be allowed to vote on any condo conversion," she said.
More than 1,000 local apartments have been turned into condos since last year, while new rental construction has been non-existent and rents have skyrocketed.
"As far as I'm concerned, no matter how low the vacancy rate goes and how many people are suffering, this council will never turn down a condo conversion," a visibly frustrated Coun. Bob Pringle said during Monday's meeting.
Among people who are most affected by the issue, city council is increasingly seen as insensitive to their plight, Pringle said. He's been told record numbers of people are using the Food Bank, "and it's all shelter related," he said.
Sharon Baldock, an apartment-dweller who wrote council to express her opposition to conversions, expressed outrage that councillors with condo investments have been voting on the issue.
"I demand that any and all members of council, including the mayor, be prohibited from any further votes pertaining to condo conversions if they have any direct or indirect investments regarding condos," Baldock wrote.
At the time they're elected, city councillors must sign a public document disclosing the pecuniary interests of themselves and their immediate families, including all properties they own in Saskatoon and area. During their terms in office, they must report any changes to those interests within 30 days.
Provincial law requires council members to declare a conflict and excuse themselves from voting on issues that could directly affect their interests.
In an interview Friday, city solicitor Theresa Dust noted only a judge can declare a city councillor to be in a conflict of interest under those provisions -- which could only happen if someone successfully sued the individual councillor.
If the judge heard all the circumstances and concluded the councillor had voted while in a conflict of interest, he or she would be removed from office, but council's original decision would still stand, Dust said.
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COUNCILLORS' RENTAL PROPERTIES:
- In addition to their home, Coun. Myles Heidt and his wife own two single-family rental houses in the city: one on Avenue Q North and one on McDougall Crescent.
"My spouse and me have not sold any property or bought any residential or rental property since January 2007," Heidt said in response to an inquiry from The StarPhoenix this week. "However I should have."
- Coun. Darren Hill has owned a single condominium unit in River Heights for the last nine years. He told The StarPhoenix it's currently occupied by his mother, who had to move out of her last apartment because of a condo conversion and could not find a suitable alternative in the tight market. He charges just enough rent to cover the mortgage and condo fees, he said.
- Coun. Gord Wyant's wife owns two rented condo units in the Hallmark Place Apartments downtown on Sixth Avenue North. He told The StarPhoenix they also own a house on 11th Street which was a rental property for a time, but it's currently in poor condition. The house is vacant and they may demolish it soon, Wyant said. They also sold a condo unit last year and invested the money in a vacation home, he said.
- In addition to her home, Coun. Tiffany Paulsen is part-owner of two condo units in Lakeshore Estates on Stillwater Drive.
- Mayor Don Atchison and Councillors Bob Pringle, Maurice Neault, Pat Lorje, Charlie Clark, Glen Penner and Bev Dubois say they do not own any rental properties.
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