Parker Land Debacle: Winnipeg Taxpayers Face $100 Million Impact

Part 1

The dysfunction within Winnipeg City Hall has always been a growing concern, as a troubling lack of accountability persists across multiple administrations. On Friday, Winnipeg City Councillor for Fort Garry, John Orlikow, announced he has resigned from his Community Services Committee and the Budget Working Group duties.

“Recently, I have been experiencing some physical health issues and after speaking with my doctor, I have decided that it is best that I take a temporary leave from council,” said a statement issued by Orlikow.

However, not all residents in the River Heights area he represents and concerned citizens across Winnipeg are buying Orlikow’s sudden timing to depart from his duties, seeing as the Council is in recess for the summer. They see Orlikow’s leave as more of a direct result of being referred to by name 101 and several other times as the area Councillor in a landmark court judgement against the City of Winnipeg.

According to a decisive ruling by Manitoba King’s Bench Justice Shauna McCarthy on July 6, it came to light that Orlikow had directly instructed two city planners, Braden Smith and Michael Robinson, to deliberately obstruct the progress of the Fulton Grove development, which Gem Equities were undertaking. This blatant interference in the developmental process has raised serious questions about the integrity and transparency of the city council.

“I find there were several instances of bad faith and deliberate conduct which were intended to slow or frustrate the plaintiffs’ applications and that the individuals involved were aware that their conduct was unlawful and likely to cause harm to the plaintiffs,” wrote Justice McCarthy

The judge’s verdict not only shed light on what she perceived as Orlikow’s involvement but also resulted in a substantial penalty, with Gem Equities being awarded $5 million due to the deliberate hindrance. Such alarming incidents underscore the pressing need for comprehensive reforms and robust checks and balances within Winnipeg’s governance to safeguard the interests of its citizens and restore public trust.

City Councillor John Orlikow’s response to the judge’s ruling, claiming he was “shocked,” and feigning ignorance about any alleged wrongdoing, is horrendous and nonsensical. It stands as one of the most absurd and inadequate responses ever given by an elected official in the history of Winnipeg. Considering the plethora of controversial statements made by other city councillors in the past, this response speaks volumes about the lack of accountability among some of Winnipeg’s city council members.

As we reiterate, Councillor Orlikow was explicitly named 101 times in the 92-page ruling, with numerous references to his role as the Councillor for the area in question. It is implausible for him to play naive in the matter. It is also important to note that Orlikow was not named in the lawsuit, maintains his innocence, and states he had no part in the delays that plagued the Fulton Grove Parker Land project.

In light of the judge’s ruling, there is a pressing need for a more substantial and decisive response. City Councillor John Orlikow should seriously consider resigning, as he has lost citizens’ trust in his ward and eroded the trust of many Winnipeggers. His actions, as cited in the detailed ruling by Justice McCarthy, were instrumental in causing delays in the Gem Equities project.

It is essential to prioritize the interests and wellbeing of the city and its residents above all else. By stepping down, Orlikow can signal his acknowledgment of the seriousness of the situation and demonstrate a commitment to upholding the integrity and transparency expected of elected officials. The city deserves leaders who always act in the public’s best interests and ensure responsible governance.

The responsibility to address the concerning situation at Winnipeg City Hall extends beyond City Councillor John Orlikow’s actions. Mayor Scott Gillingham, who campaigned on a platform of accountability and transparency, must also take a decisive stand to address the deliberate interference levels plaguing the institution. The Mayor must investigate Orlikow’s interference, as highlighted in the comprehensive 92-page ruling by Justice McCarthy. However, the Mayor has yet to take such action, raising further questions about the commitment to uphold ethical standards and accountability within City Hall.

Moreover, other Winnipeg City councillors must step forward and demand an investigation into this matter. Unfortunately, a cone of silence prevails among the council members, unwilling to publicly voice their support for probing one of their own. This reluctance may stem from the fact that many of them have been on Council for an extended period and may have been privy to, ruled on, or voted for or against the development by GEM Equities years ago, as the matter dates back a decade. Fear of potential implications for themselves could likely contribute to this inaction, ultimately putting their interests ahead of the citizens they are meant to represent.

Before the commencement of Winnipeg City Council’s summer session, Don Woodstock, a concerned citizen and former mayoral candidate who ran on a campaign of a clean sweep at City Hall, took the initiative to write a letter to the Mayor and the council members, urging them to address a matter of the Magistrates ruling citing Orlikow’s role in slowing the development of Parker Land as it is significant public interest.

However, to the dismay of many, on the final date of the session, not a single city Councillor or the Mayor took up the matter or put it to a vote. This apparent lack of action speaks volumes about the council’s will to address essential issues that matter to the public. The failure to consider such concerns raises questions about the council’s commitment to transparent and accountable governance, leaving citizens questioning their elected representatives’ dedication to their best interests.

One city Councillor, Ross Eadie, responded to Mr. Woodstock’s letter, requesting a vote to address the issue. However, Eadie’s response left much to be desired. He seemingly dismissed the gravity of the matter.

“Give it up Mr. Woodstock. Councillor John Orlikow was simply doing his job not unlike most of us councillors when it comes to the development of our urban Winnipeg whether it is infill or green field.

Mr. Marquess just wants what he wants and anything else is unfair to him. Thank goodness all developers are not like that – they compromise for a better Winnipeg.” Wrote Councillor Ross Eadie,

This mindset only further reinforces the dismissive attitudes at City Hall. It makes citizens feel their opinions and concerns about matters affecting them are unimportant. Ross Eadie is not a rookie Councillor and should know better. As a result, his response is seen by many as needing to take the situation seriously and appreciate the importance of a thorough investigation to ensure the city council’s integrity.

The citizens of Winnipeg deserve better than a lack of accountability and a reluctance to investigate serious allegations of interference and corruption within City Hall. Mayor Scott Gillingham and the city council are responsible for taking decisive action and demonstrating a commitment to transparency, ethical conduct, and accountable governance.

The lack of willingness of Winnipeg’s Mayor and City Councillors to promptly address the Orlikow situation head-on, based on Justice McCarthy’s 92-page ruling lead, prompted Woodstock to file an official complaint with Winnipeg’s Integrity Commissioner Sherri Walsh, who had to recuse herself due to a conflict of interest and referred the matter out of province to Edmonton.

Walsh’s decision to recuse herself from the Orlikow situation due to a conflict of interest and refer the matter to another jurisdiction is prudent. By stepping back, she allows fresh eyes to examine the case independently, unburdened by any potential biases or preconceptions. This move brings a sense of anticipation as the new jurisdiction takes charge of the investigation, raising hopes for a fair and impartial resolution to the Orlikow situation, eagerly awaited by many.

As the report from the out-of-jurisdiction ethics commissioner awaits completion, the City of Winnipeg faces a looming financial crisis due to the recent ruling citing Councillor Orlikow’s interference with Gem Equities’ project. Due to the stalled development, the order puts the city on the hook for a staggering amount, ranging from 92 to 100 million dollars in lost revenues by Gem Equities.

Furthermore, another significant matter requiring attention is the expropriation of 20 to 25 acres from Gem Equities in 2016 for a retention pond. The city’s failure to adequately compensate for the land taken and the subsequent years of interest have led Gem Equities’ owner, Andrew Marquess, to signal his intent to seek recovery of these substantial losses in a court of law.

The situation, if not addressed promptly and responsibly, could lead to one of Winnipeg’s most devastating self-inflicted financial disasters, which has potentially deprived the city of an estimated $1.3 billion in economic activity, $650 million in net GDP contribution, over 7,000 new jobs, and $178 million in tax revenues generated at all levels of government, as indicated in the 2017-2018 Parker Land’s Executive Summary.

The role of a Winnipeg City Councillor is one of utmost responsibility – to act as good stewards of their position, advocate fiercely for their citizens, and pursue economic projects that benefit the best interest of all residents. They must avoid self-serving interests and refrain from engaging in actions detrimental to the city’s welfare. However, across multiple administrations, Winnipeg City Council has been marred by controversies and scandals, leading to officials being charged or found guilty of fraud and bribery, all at the expense of hardworking taxpayers who foot the bill for legal fees, often amounting to millions, if not tens of millions. This incompetence and mismanagement cannot be the course Winnipeg continues to tread.

The citizens of Winnipeg deserve better, and it is high time for a change. Regardless of past administrations and their mistakes, the current Councillors and Mayor Gillingham must move forward with integrity and transparency. Regrettably, Mayor Gillingham has dropped the ball by failing to issue a decisive statement demanding the highest level of integrity from all City Councillors. His association with previous administrations during the Parker Land issues only exacerbates the crisis of trust.

The road ahead is uncertain, and only the courts and time will reveal the outcomes of these ongoing issues. However, one thing is evident – the Winnipeg taxpayers will again bear the brunt of the consequences due to the incompetence and indulgent nature of the Winnipeg City Council. It is time for a change, a reckoning, and a renewed commitment to serving the people’s best interests. The citizens of Winnipeg deserve nothing less than a council that acts with integrity, transparency, and a steadfast dedication to the wellbeing of the city and its residents.