MLHU goes to court Monday over proposed Citi Plaza site
Paula Duhatschek | CBC News | Posted: May 4, 2018 11:49 PM | Last Updated: May 4, 2018
The Middlesex-London Health Unit (MLHU) is heading to court Monday in an application that could decide the status of its proposed new headquarters at Citi Plaza.
At issue is whether or not the health unit needs consent from its two municipalities, the City of London and the County of Middlesex, to lease the space.
MLHU says it does not; Middlesex County says it does.
Health Unit
According to the province's Health Promotion and Protection Act, a board of health does need consent from a majority of its municipal boards to 'acquire and hold real property.'
"The issue here is whether the words 'acquire and hold real property' include a lease interest" such as the one being proposed at Citi Plaza, said John McNair, the lawyer representing the health unit.
Also in question is whether the County should be allowed to withhold consent for the proposed new lease, given that the health unit's current headquarters are in a Middlesex County building.
As a landlord, the county collects 'in excess of $600,000 annually' from rent at 50 King St., and has a direct, conflicting interest in keeping the health unit on as a tenant, according to McNair's factum.
McNair says time is running out. The health unit's letter of intent with Citi Plaza owner I. F. Propco Holdings expires May 14.
"The owners of Citi Plaza simply can't wait forever to decide who's going into those premises," said McNair. "There are practical and economic reasons why we need to get this resolved."
Middlesex County
County lawyer Wayne Meagher said the idea that the county is worried about losing revenue is 'completely false.'
"They own real estate in a prime location in the city of London," said Meagher. "They're not concerned about renters."
Instead, Meagher said the county's main concerns are:
- That the health unit didn't do a good job of answering county members' questions about the cost of the move and the impact on services.
- That the health unit signed a letter of intent with Propco before getting consent from the county.
"Essentially that's signing first and not studying the county," said Meagher.
County council says the court application is unnecessary, and that the lease issue could have been easily resolved through discussion, Meagher said.
"The health unit's using the courts to disenfranchise an entire council," he said.
Farhi Holdings Corporation
Although the application won't go before a judge until Monday, one London real estate developer is already betting big on the assumption that the health unit will lose.
Farhi Holdings Corporation (FHC) issued a press release Friday afternoon announcing a proposal for a 'London Wellness Hub.'
In it, FHC offers up London's Market Tower as a possible location for both the health unit's headquarters and a supervised consumption site.
Although FHC owner Shmuel Farhi has 'conducted outreach' to the board of health, spokesperson Patrick Sackville told CBC that 'so far there has been no response from the board.'
"We are aware that they are having an ongoing conversation that looks to conclude likely at the beginning of next week with the county," said Sackville.
"The anticipation is that the board of health is going to lose that decision."
When CBC asked the MLHU about Monday's court proceedings, chief medical officer of health Chris Mackie said, "It would be highly inappropriate for us to comment on a proposal to move MLHU offices to Market Tower when we are in the midst of both an RFP process and a related legal case."