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- Written by Gordon Prentice
In 2021 the Glernway West developer, Marianneville, made a charitable donation of 16 acres of land to the Town of Newmarket. In return, the Town gave the developer a tax receipt (or tax certificate) which could be used to offset tax otherwise owing to the Canada Revenue Agency.
The valuation by Bottero & Associates made the "extraordinary assumption" that the two stormwater ponds on the donated land could be filled in and the land used for a town house development. I cannot believe this assumption was ever presented to the Town's engineers or planners for their comments. They would have immediately raised objections.
The Town of Newmarket's Comprehensive Stormwater Management Master Plan (2017) gives figures for the original design protection levels for the two storm water ponds on the donated land together with the catchment area and pond storage capacities. The ponds are being reconfigured and I do not immediately know the capacity of the new ponds and how they will compare with the old ones. But the plain fact is they are staying and not being filled in. They have a continuing practical function, going beyond the aesthetic of having a nice water feature on your doorstep.
"Definitely required"
Last night (6 May 2025) the Town consulted residents on its early thinking on how the donated land could be enhanced and turned into an attractive open space, designed to benefit the neighbourhood and the local environment. Residents who tuned into the Zoom presentation were told the storm water ponds were "definitely required" to prevent flooding downstream.
The cost of this project will, I suppose, fall on Town residents and on the Lake Simcoe Region Conservation Authority. We wait for further details. Years ago, as part of the original deal, the wily developer, Marianneville, offered to pay for the trails provided signs were posted at intervals along the paths reminding the public of the developer's generosity.
Clearly, we need to revisit the Bottero valuation. If its central premise - filling in the storm water ponds and using the land for a town house development - is invalid then we should say so.
It was inaccurate in 2021 and it is proved to be inaccurate today.
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Update on 7 May 2025: The YouTube clip was shot on 25 April 2025 and sets out the position on that date as I understood it to be. The information from the Zoom meeting on 6 May 2025 has moved things on.
Update on 9 May 2025: This morning I received this from the Town’s engineers concerning the storm water ponds:
"The two ponds provide stormwater storage and some quality treatment for the neighbouring subdivision. Filling in these ponds would increase damage and the risk of floods downstream during storms and snow melts events by removing upstream stormwater storage capacity.”
- Details
- Written by Gordon Prentice
The former Glenway golf course lands in Newmarket were purchased by the developer Marianneville in 2010 for less than $10M. Since then, the old fairways are being progressively replaced by housing. It was the deal of the century which generated a huge profit for the developer who (successfully) gambled on being able to change the land use designation from open space to housing. The Town passed over the chance to buy in 2008 when the then Chief Executive, Bob Shelton, advised councillors that the Town was not in the business of running a golf course. (It should be in the business of preserving and protecting open space.)
Phoney valuation
A phoney valuation allowed the developer to claim a “tax receipt” from the Town of Newmarket, allowing it to offset the donation against tax otherwise owing to the Canada Revenue Agency. The developer would get a proportion of the purported value of the donated land, assessed at $14.2M. This is how charitable donations work in the tax system. Charitable donations of land which are claimed against tax, as described, require a valuation.
Marianneville said it would only donate the land to the Town if it got a tax receipt in return. The gift was conditional. The Town was happy to oblige:
“In consideration of the conveyance of the Lands and Stormwater Management Lands to the Town, (i.e. the donated lands) The Town agrees to provide a tax receipt to the Owner, as permitted under guidelines by the Canada Revenue Agency, reflecting the fair market value (FMV) of the (donated lands) and to place a recognition plaque within the (donated lands) acknowledging the donation of these lands to the Town.”
“The FMV will be determined by an appraisal of the Lands jointly commissioned by the Town and the Owner…”
Extraordinary assumptions
In arriving at their April 2021 valuation, Bottereo & Associates, make a series of “extraordinary assumptions” based on an analysis which
“relies upon written and verbal information obtained from primary and hearsay sources. Client supplied information was assumed to be correct and was verified where possible.”
It was all smoke and mirrors.
Bottero assumed that if the donated land was
“not to be required for park related purposes it would… support medium density residential development similar to that for the remainder of the Parent Property” (ie the Town House block at Bathurst and Sykes).
One third of the donated land on the western side next to Bathurst would be preserved as open space. There really wasn’t an alternative as this land in the Oak Ridges Moraine is a significant water recharge area.
Stormwater ponds to be filled in
They also assumed the two stormwater ponds in the remaining two thirds could be filled in and developed:
“These are being considered, consistent with the industry norm, on the basis of being otherwise developable.”
This "extraordinary assumption" is a complete fantasy. I have not seen a single document from the Town suggesting the donated land could be used for any other purpose than parkland and open space. But even if the Town were, at some point in the future, to change its use from open space to housing – as predicated by Bottero - then where would the water run-off go if the ponds were filled in? The valuers say they consulted the Town’s Planning Department. Was that question ever put to them or to the Town’s engineers? If not why not?
Ponds to be upgraded
Next week the Town will be consulting Glenway West residents on plans to “upgrade and retrofit the ponds at 320 Alex Doner Drive”. (Pond 13 also known as 3 shown right).
The work is being done by the Town and the Lake Simcoe Region Conservation Authority presumably in recognition that the ponds are still needed. Public money is being spent to enhance the ponds, not get rid of them. I am authoritatively told that at no stage has the Town ever considered filling them in. Successive reports from engineers and hydrologists never said the ponds were surplus to requirements.
The valuers say town houses could be built on the filled in ponds. But this would clash with the Town’s compatibility policies where new developments are supposed to fit in with adjacent housing forms. Concerns about compatibility were voiced by the Mayor and ward councillor, Christina Bisanz, when the Glenway West development was formally approved by the Town on 2 May 2022.
Open Space purposes
As early as May 2017 the Town was celebrating the promised gift of 16 acres of land
“for park/open space purposes as well as land supporting the existing stormwater management facilities”.
Councillors welcomed the gift of open space.
On 3 February 2020 - over a year before Bottero did their report - the Statutory Public Meeting on the Glenway West development was held.
When the details were finalised in December 2021, Newmarket Today reported the views of Marianneville's Vice-President Joanne Barnett:
The donated lands are around the former 16th hole of the golf course. Barnett said that portion of the property was less suitable for development for houses, but worked for a trail system.
“They supported two stormwater ponds and segued nicely into the woodlot there,” Barnett said. “It was a nice fit.”
Marianneville and the Town jointly commissioned Bottero & Associates to do the valuation but it was the developer’s recommendation and the Town went along with it.
The resulting valuation was completed on 14 April 2021 and the Town issued the tax receipt for $14.2M on 14 December 2021. The Town’s then Treasurer said the tax receipt didn’t cost the Town anything. Just the cost of a sheet of paper. The Town marked the official handover in a news release on 16 December 2021.
Later that month Newmarket Today reported that the Glenway West development was nearing the planning finish line after the land donation.
Deaf Ears
Over the years I’ve raised concerns about the extraordinary assumptions made by Bottero & Associates but these have largely fallen on deaf ears. So far as I know the valuers never asked the Town's planners and engineers if their extraordinary assumptions about filling in the stormwater ponds and building townhouses on the land were even remotely realistic.
I gave detailed reasons for believing the whole valuation process was flawed in a letter to the Canada Revenue Agency but, other than an acknowledgement, it has disappeared into a big black hole in Ottawa.
I asked the Town’s (then) newly appointed Chief Executive, Ian McDougall, if he would commission a new valuation but he said he would only do so if directed by the CRA.
So there the matter stands.
The developer offloads undevelopable land to the municipality and is allowed to set its charitable donation against tax otherwise owed to the Canada Revenue Agency.
The Town gets much needed open space for free.
And we, the public, bear the cost of upgrading the stormwater ponds that, fancifully, could be filled-in and the land developed for housing if the Town decided in a moment of madness it no longer needed the park and open space..
What is to be done?
If I were a member of Newmarket Council I'd be pressing the Town get in touch with the Appraisal Institute of Canada asking them to look again at their “industry norms” which allow valuers to make “extraordinary assumptions” on matters such as storm water ponds without checking with the municipality first to see if their assumptions are credible and supportable.
So far as the CRA is concerned, I guess Marianneville has now cashed in its tax receipt and, for them, it’s all water under the bridge.
That's the way the system works.
Money for old rope.
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My letter to CRA is here.
Work continues elsewhere in Glenway West:
- Details
- Written by Gordon Prentice
We are very fortunate to live in Canada.
Our elections are free and fair. We all accept the results.
Candidates can sleep in their beds at night safe in the knowledge they are not going to disappear in the early hours. As happens in some countries.
If they lose, they pick themselves up, dust themselves down and live to fight another day.
Regular Maintenance
That said, our system is not perfect and it requires regular maintenance if it is to stay in tip-top condition, just like the car in the garage.
Churchill is often quoted as saying:
“Democracy is the worst form of government, except for all the others.”
This is an an elliptical version of his statement in the House of Commons in 1947:
“It has been said that democracy is the worst form of Government except for all those other forms that have been tried from time to time.…”
Either way, the meaning is clear.
Kept in the dark
Voters will never have perfect information when they cast their ballot. But sometimes they are kept completely in the dark or, worst still, deliberately misinformed.
When people in Newmarket-Aurora voted in the Federal Election on 28 April 2025, only a tiny handful (maybe not even that) knew that the Liberal candidate was carrying a mountain of debt arising from a failed business venture. If the voters had known about this would it have shifted a few votes? Probably.
In the 2016 referendum on Brexit, many voters were swayed by Boris Johnson’s bogus claim that
“We send the EU £350m a week: let’s fund our NHS instead”
Britain narrowly voted to leave the European Union committing the greatest self-inflicted economic harm to the country in a generation.
Many UK voters who voted to leave now have buyer’s remorse.
Deformed democracy
So, elections – and referendums – have consequences. We need look no further than the deformed democracy that is reshaping Trump’s America.
Not long after I posted my blog (on election day) about the Liberal candidate here in Newmarket-Aurora I got this email from one of my readers:
“Too bad you needed to release this today.”
To which I replied:
“Too bad she didn’t tell us before when she could have woven it into her story."
But, to reassure you, my post won’t make a blind bit of difference. Tiny readership.”
We are lucky to have Newmarket Today with its splendid young journalist Joseph Quigley reporting on the issues that matter.
And, thankfully, we have the CBC, authoritatively sifting the wheat from the chaff, allowing voters to make an informed decision. Imagine the furore if the CBC withheld information from the public because it had unearthed an inconvenient truth.
Unavailable
Sometimes the information voters need is simply unavailable.
Scandalously, all three Party Platforms were published after the start in voting in the advance polls.
And election debates involving local candidates are going the way of the Dodo.
When I ran for election as the Town’s Deputy Mayor in 2022 (and was comprehensively defeated) my opponent resolutely refused to debate with me.
And now he says of Monday’s result:
“The people have spoken, and in a democracy, the people are never wrong. Congratulations to Sandra Cobena on her decisive win in Newmarket-Aurora.”
Next year, if he has the nerve to run again for Deputy Mayor I hope he will tell people he has historically been bankrolled by developers. He is their friend.
Shallow pool
The people can be wrong if they are not given the information they need to make an informed choice. I don’t blame the voters. I blame the system.
Not enough people are engaged in our politics. They have other things to do with their time. So the candidate pool for the Federal and Provincial Parliaments is incredibly shallow.
On the Liberal side in Newmarket-Aurora, Jennifer McLachlan was acclaimed. Before her Tony Van Bynen was acclaimed. Before him Kyle Peterson was acclaimed. And this for a job with a base salary of $210,000.
On the Conservative side, Dawn Gallagher Murphy was appointed as candidate by the Party leader. Before her, Christine Elliott was shoehorned in to replace a candidate found cheating.
Soft underbelly
The report on Foreign Interference by the Honourable Marie-Josée Hogue, shows us that nominations – totally unregulated by Elections Canada – are the soft underbelly of Canadian democracy. The new Parliament has got to tighten things up.
Politics is a rough old trade and it is not for the faint-hearted.
But it should be clean.
Is that asking too much?
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- Details
- Written by Gordon Prentice
Voter turnout in Newmarket-Aurora was 70.66% compared with 60.58% (2021); 67.3% (2019); 68.25% (2015) and 64.01% (2011). It was above the national turnout figure of 68.63%. Previous results are here.
- Details
- Written by Gordon Prentice
Monday 28 April 2025 at 1.30pm
The Liberal Party candidate in today’s Federal Election in Newmarket-Aurora, Jennifer McLauchlan, is deep in debt to the Royal Bank of Canada as the result of the collapse of the Cachet restaurant she ran at 500 Water Street in downtown Newmarket.
I learned yesterday about the proceedings in the Superior Court of Justice in Newmarket on 24 January 2024 which resulted in an Order to repay the bank sums totalling $296,831.
I have spent the morning examining the Court files and wading through reams of legal documents.
Default
But the issue seems clear enough. The Royal Bank loaned Jennifer McLaughlan a very substantial sum of money which wasn’t repaid as planned. She defaulted.
She admits most of the allegations made by the Bank in their Statement of Claim.
McLaughlan says in her Statement of Defence filed with the Superior Court of Justice in Newmarket on 11 September 2023:
“(Cachet Restaurant) ceased operation as of May 29, 2023.This was after a notice had been issued to the defendant (her) by the Landlord, the Town of Newmarket, with their intent to RFP (ie Request for Proposal) the business location in 2024. Therefore, the termination of an active Purchase and Sale Agreement for the business which was to be realised March 31, 2024. Should the (Town of Newmarket) not have taken this direction, the terms of the loan dated March 24, 2017 would have been satisfied…
She goes on:
“The Defendant Jennifer McLauchlan, did provide a personal guarantee for the agreement March 24, 2017. However, due to the financial crisis caused by the Covid 19 Pandemic, Ms McLachlan did sell her property and invested her personal financial portfolio to remain compliant with the obligations of the agreement and maintain the operation of the business. As a result, the business was placed on the market for sale in June 2022.”
In financial crisis and with no fixed address
She challenges paragraph 4 of the Bank’s Statement of Claim which states that Jennifer McLaughlan “is an individual residing in Newmarket, Ontario and at all material times… was a guarantor of the obligations” she had made with the RBC.
She hits back:
“In relation to paragraph 4… Jennifer McLachlan… is an individual NOT residing in Newmarket, Ontario. The Defendant is currently in financial crisis with no fixed address and has been residing through out the province of British Columbia,”
I have no idea what that means.
Sympathetic
In her judgement in favour of the bank on 24 January 2024, the Hon Madam Justice Fraser was clearly sympathetic to the situation McLachlan found herself in:
“The Defendants (McLachlan and her Ontario numbered company 2560451) had a restaurant in Newmarket which did not survive the COVID-19 pandemic. The Court has sympathy for the Defendants’ position and Ms. McLachlan’s desire and attempts to meet her financial obligations as reflected in her statement of defence. However, it is plain and obvious that the statement of defence does not disclose a reasonable defence, that it should be struck, and that judgment should issue. The claim for interest is substantiated on the material before me. The fees claimed are fair and reasonable. Order to go in accordance with the draft filed as signed by me.”
Voters were completely unaware of all this – as was I until moments ago after wading through the documentation and trying to make sense of it as best I could.
As I tap this out people are in the very process of voting on who should represent them in the new Parliament.
How do I feel as I stop typing?
Sad and disappointed probably sums it up best.
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