Expropriation hearing missing key players in fire hall scandal

Former Winnipeg Fire Paramedic chief Reid Douglas and property and planning director Barry Thorgrimson both signed a letter of intent in 2012 that launched a now-infamous land swap deal.

But neither were present for a hearing Monday that property developer Shindico hopes will stop the expropriation of land on Taylor Avenue where the city has already built a fire hall.

• City of Winnipeg moves to expropriate fire hall land on Taylor Avenue

• City fire hall land swap, police HQ audits to be reviewed by RCMP​

Thorgrimson retired from the city on Friday; Douglas left the service in September of 2013.

Land swap: then and now

The city built a fire station in 2012 on land they hadn't yet purchased from Shindico.

The property was supposed to be part of a three-for-one land swap deal between Shindico and the city.

But the deal fell apart after CBC News discovered one of the properties in the deal was available for lease on Shindico's website, before it got the necessary approvals.

• Shindico shown favouritism, fire hall report shows

• Questions arise over old fire hall put up for lease

Douglas claimed he had a verbal agreement with Shindico for the land.

• Fire chief says he has verbal agreement on land swap

He negotiated a deal with the developer to exchange two older fire stations and land on Mulvey Avenue for the property at 1780 Taylor Ave. He was later fired, spurring a wave of criticism from councillors about the timing of his dismissal.

The city performed an audit of the land swap transaction on Oct. 7 of 2013 and found a number of city practices and procedures weren't followed.

Shindico hasn't been paid for the land. The city made an offer to buy the land early last year, but Shindico declined the offer.

'We have reached a stalemate': Thorgrimson

Thorgrimson told reporters in February of this year that the city could not reach a deal on purchasing the land with Shindico, and that they would move forward with expropriation.

"I don't believe that they are injuriously affected," Thorgrimson said in February. "That's their [Shindico's] argument ... we as a department disagree with that and that's why ... we have reached a stalemate."

During Monday's hearing, Shindico representatives referred several times to a January 2012 letter of intent to do the land swap deal, signed by Thorgrimson.

Several months after that letter was signed, Thorgrimson told reporters he knew next to nothing about the land swap, claiming he was "left out of the process."

Adjudicator appointed by province

Shindico has ultimately objected to the terms of the expropriation, so the Manitoba government appointed inquiry officer Michael Green to produce a report reviewing the company's concerns. City council will vote on Green's recommendations.

Shindico argued Monday, with Green present, that the city should include a portion of the land Shindico owns next door.

The property the city doesn't want to buy, but Shindico insists should be part of the deal, is a triangular portion of land 323-square-feet in size.

At one point in the hearing, Shindico's lawyer, Antoine Hacault, asked John Zabudney, the city's manager of real estate, about the letter of intent Thorgrimson and Douglas had signed on the land swap deal.

"How would it come to be that the director of [property, planning and development] would come to the conclusion that this is a document he should sign?" asked Hacault.

Zabudney responded by saying that the letter of intent was "not binding us [the city] ... it was allowing us to move forward."

Once Green has written a report on Shindico's request not to have the land expropriated, he will forward it to city council and it will vote on whether to accept his recommendations.

If the land is to be expropriated, the province's Land Value Appraisal Commission would then determine a price in a separate hearing.