Hamilton makes 'honesty and integrity' a criteria for downtown development loans

Developers looking for downtown development funds from city hall will now have to convince council they will act with "integrity and honesty."

A Hamilton city committee has approved an amendment to a downtown grant and loan program for developers, allowing councillors to deny cash to applicants with criminal records that raise red flags.

A staff report was presented to the general issues committee Monday morning and was approved by councillors with little discussion. The vote means the city can deny applicants to the Downtown and Community Renewal Loan and Grants program if the applicant's criminal record raises concerns about "honesty and integrity."

"This motion came from a situation that [a developer] was given a grant and applicant actually owed about $300,000 to a young lady who was sexually assaulted in his business," said Coun. Brad Clark during Monday's discussion.

Clark was referencing Denis Vranich, who received a $333,000 grant under the program. The city later found out, Clark said, that Vranich was convicted of sex assault offences and owed close to that amount in damages to a former female employee at a Hess Village club he owned.

Vranich pleaded guilty to the assault in 2007, according to a report from the Hamilton Spectator.

The city "may reject any application received from an applicant where the applicant's criminal conviction record raises concerns that the applicant, in undertaking the activity, operation or business for which the loan/grant is sought, will not conduct himself with honesty and integrity."

The amendment must be ratified at a city council meeting Friday morning.