The Toronto Sun: City Hall
 

JANUARY 21, 2009: THE TORONTO SUN

Council's $980,000 gift

City's biggest cash or real estate giveaway to date hands laneway to Women's College Hospital

                                                   By SUE-ANN LEVY

 

At last week's government management committee, councillors were presented with a report confirming that last year the city spent a shocking five times as much buying up new properties as it did selling off the assets it already owns. 

According to the year-end report, there were 20 sales of vacant land and surplus residential properties valued at $13.5 million. By Dec. 18, $10.3 million of those sales had actually closed. 

In the same year, however, the city purchased 79 parcels -- mostly residential, commercial and agricultural lands -- costing $56.9 million. One parcel of agricultural land purchased in Coun. Raymond Cho's ward cost a whopping $17 million. 

Another eight pieces of land -- worth $10.1 million -- were bought but the sales had not yet closed as of mid-December. 

Joe Casali, the city's director of real estate services, said the purchases are "everything and anything the city needs property for" -- including parkland, land for roadway reasons and old Sheppard subway expropriation claims. 

As for sales, Casali says when a city property is declared surplus, it is circulated to all departments to see if they want to keep it in-house. If a department needs a property, they submit a "business case" to the city's Property Management committee which consists of peers. 

(I suspect, given the fact that like-minded city officials sit on the Property Management committee, this is why few properties are ever handed over for open sale.) 

Nevertheless, the year-end report wasn't the only real estate gem that came out of last week's government management committee (and I use the word "management" very loosely). 

It seems the Millerites are not just in the land acquisition business but have decided it is well within their rights to give away parcels of land to assorted friends and would-be political supporters in need. 

I'm referring to what was supposed to be the sale of a public laneway -- appraised at $980,000 -- directly adjoining Women's College Hospital between Grenville and Grosvenor Sts. 

COUNCILLOR'S PITCH 

A city report suggested the lane be put up for sale. But when Coun. Kyle Rae -- in whose ward the hospital is located -- made a pitch to grant the hospital the $980,000 needed to buy the laneway (from what city fund, I'm not sure), his like-minded colleagues were only too happy to comply. 

Councillors Pam McConnell, Bill Saundercook, Gloria Lindsay Luby and Adrian Heaps jumped at the chance to give until it hurts (with other people's money, of course). 

It didn't matter a bit that health care is a provincial responsibility or that according to Casali this would be the largest cash/real estate asset giveaway to date (although the land would likely fetch far less on the open market). 

The hospital needs the lane as it plans to tear down its existing building and construct a new ambulatory care facility. 

But here I thought Mayor David Miller and his minions were supposed to be divesting some of the city's $18-billion portfolio of assets, or at the very least unlocking the best value from under-utilized assets -- with the specific goal of raising at least $150 million annually to help pay down the city's huge debt. 

This, after all, was one key proposal of Miller's fiscal review panel. 

Coun. Mike Del Grande, who voted against the proposal to give the hospital the $980,000 to buy the laneway, said the city should not be responsible for hospital funding but if they want to be, they should at least discuss the policy before handing over the money carte blanche. 

"We're giving away money for health care when our debt is increasing by (at least) $240 million this year," he said. "I'm having difficulty with this because this is not our core business ... it's nonsense." 

Coun. Doug Holyday, who also voted against the grant last week, agreed there is no city policy that allows politicians to give $1-million grants to hospitals. 

"We can't afford to give $1 million away of anything," he said. "Whether it's $980,000 in property or $980,000 in cash, it's taxpayers assets that should be dealt with responsibly and not simply given away. 

Holyday insists he's not surprised the Millerites are accumulating property (instead of selling it off) because it is the NDP way. They use the property they accumulate to "make political deals," he says. 

The hospital giveaway is but one example, he said. 

"They (the NDPers) like to have as much control over property as they can," he said. "They use it to curry political favours in their wards."