Details

The Mayor of King Township, Steve Pellegrini, spoke to the Globe and Mail on 1 February 2023 about the key meeting on 1 November 2022 when developer and landowner, Michael Rice, offered Greenbelt land to Southlake hospital for a nominal fee.  (photo Michael Rice right bottom)

Mayor Pellegrini told the Globe and Mail:

I asked Mike Rice, this is the whole thing, I asked him, would you donate land if we could get a hospital? And he said yes… That’s the only time I talked to him.”  (My underlining)

Untrue

That statement about Pellegrini talking only once to Michael Rice is untrue. But I am intrigued. Why would Mayor Pellegrini dissemble? 

I knew the Mayor had a leisurely lunch with Michael Rice and John McGovern (Senior Vice President Policy and Planning at the Rice Group) at the Terra Restaurant in Thornhill on 10 August 2022. And they met again for a “pre-meeting on hospital expansion” at the King Municipal Centre on 17 October 2022.

Pellegrini couldn’t possibly have forgotten about these meetings.

Indignant 

Yet the day after the piece appeared in the Globe and Mail an indignant Mayor Pellegrini issued a statement castigating the new NDP Leader Marit Stiles for allegedly peddling false information and not reaching out to King to check the facts.

So, earlier today, I asked him if he had been misquoted. He dodges the question and simply tells me: 

“I ask Mr. Rice at our lunch if he would be interested in donating land for the proposed 2nd Southlake. The follow-up meeting was to deal with this matter.”

Multiple meetings

So the meeting on 1 November 2022 was not the only time Pellegrini talked to Rice. In fact, contact between King Township and the Rice Group can be traced back to a meeting at the Lake Simcoe Region Conservation Authority annual dinner on 22 June 2022 where King’s Chief Administrative Officer, Daniel Kostopolous, talked to Michael Rice about the Greenbelt lands south of Miller’s Side Road which were, even then, under contract to Rice. The sale didn’t go through until 15 September 2022.

The pieces in this complex jigsaw are slowly being put in place.

But it helps if the key players tell the truth.

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I have filed a Freedom of Information request for sight of records held by the Township – and specifically by the Mayor’s Office – of that pre-meeting on hospital expansion on 17 October 2022.

Details

I see that Dawn “Corn Roast” Gallagher Murphy will be hosting a “Coronation Viewing” at the Royal Canadian Legion in Aurora from 6am – 11am on Saturday 6 May 2023 and that light refreshments will be provided. 

If past practice is any guide, this will be billed to the taxpayers.

The rules do not allow public money to be spent on alcohol. So no celebratory champagne. “Light foods” are permitted such as sandwiches, muffins, doughnuts, cakes and fruit but no suckling pigs or venison. 

Dawn likes her food. 

Dawn claimed over $11,000 of taxpayers’ money for a BBQ and Corn Fest last October. It was advertised as being open to all. She asked for members of the public to register with her office first – presumably to give her some idea how much food to get in. But she will also know who attended. They can expect an invitation to the next one.

Astonishingly, this largesse is within the rules. But when Newmarket Today approached her:

“Gallagher Murphy declined to be interviewed or provide a comment.”

Why the reticence? Dawn has promised to make this an annual event. 

$11,000 BBQ charged to taxpayers

When I expressed concerns to the people at Queen’s Park who deal with these things I was told MPPs could expense events up until the dropping of the writ for an election. This would allow Dawn, if she were so inclined, to host a $11,000 BBQ, at our expense, a month before the next Provincial election. 

Rules unavailable

I ask to see the rules and I am told they are not available. Why not? 

Who decides the rules? When were they last changed? What is the mechanism for changing the rules? Is there a committee that reviews the rules? Can I address it? Who should I contact? 

I am waiting for the answers to these simple questions. This is work-in-progress.

Food Expenses miscategorised

Elsewhere… the auditors who signed off Dawn Gallagher Murphy’s Financial Statement (CR1) for last June’s Provincial election, Impact CPA LLP of Richmond Hill, now admit some food expenses – running into many thousands of dollars - were miscategorised.

So... what's the big deal? Who cares?

It's only an election audit.

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Details

On 1 February 2023 Blair McArthur, the Senior Vice President of Miller Paving Ltd, part of the Miller Group, gave $1,200 to Tom Vegh to help fund his campaign for re-election.  (photo right)

I am left wondering if Vegh asked for a donation – more than three months after the election. Or did McArthur volunteer the money without Vegh asking? I don’t know.

In any event, during the election last year Vegh promised voters he would not take money from people doing business with the Town. He made it perfectly clear:

"... donations from anyone who may do business with the Town will not be accepted."

The Miller Group website tells us they provide products and services through a number of owned and affiliated companies including Brennan Paving & Construction Ltd.

Construction Contract

Brennan Paving & Construction Ltd is currently bidding for a contract to reconstruct and resurface Pony Drive here in Newmarket. 

The law now prohibits corporate and trade union donations so Blair McArthur was donating as a private individual.

However, in Vegh’s financial statement McArthur’s address is given as:

180 Renfrew, Suite 120, Markham, Ontario,L3R 9Z2

This is the business address of White Owl.

Unaware

Vegh told Newmarket Today that he was unaware of the alleged connection McArthur had with White Owl before filing his documents (on Wednesday 29 March 2023). He said White Owl is not doing any business with the Town of Newmarket. 

Blair McArthur also contributed to Vegh’s 2018 election campaign on 11 January 2019, again after the campaign period had officially ended.

Back then McArthur gave his address as:

PO Box 4080, Markham, L3R 9R8

This is the business address – or one of them – of Miller Paving Ltd.

$350M contract with York region

The Miller Group is a vast agglomeration of entities (Click "read more" below).

Miller Paving has a huge $350M contract with York Region to extend the Yonge Street Rapidway north to Green Lane. 

I don’t know if Miller Group companies have done business with the Town of Newmarket but I am in the process of finding out. 

The question that continues to intrigue me is this. Why would a full-time politician like Vegh take money from people who may be doing business with the Town without checking it out beforehand? When he took money from McArthur in 2019 he must have realised then that McArthur was one of the big names in paving and construction. 

In so many ways, Tom Vegh is a man of mystery. A politician who is happiest when keeping his thoughts to himself, saying very little to shape events.

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Update on 16 April 2023: On 12 April 2023 the Town of Newmarket confirmed that neither the Miller Goup nor White Owl had contracted with the Town throughout the last Council Term:

I asked for sight of all Requests for Proposals issued from 23 October 2018 to 31 March 2023 showing the bid price as well as the name and address of the successful bidder for each where the address of the successful bidder included: 

505 Miller Avenue, Markham, L6G 1B2 or 

P.O. Box 4080, Markham, L3R 9R8 or 

180 Renfrew Drive, Markham, L3R 9Z2 

I am told:

"The Procurement Department has conducted a search of their records and found nothing responsive to your request." 

Details

I was too hasty in giving Tom Vegh a clean bill of health. 

On 1 February 2023, more than three months after the election, Vegh took $1,200 from Blair McArthur, the Chairman of White Owl. Vegh had also taken money from McArthur in 2018.

Real Estate

The Markham based investment company describes itself as focussing on real estate. It has a property arm.

White Owl is one of the companies who wish to develop land in the Greenbelt. They have asked for 160 acres of land in Richmond Hill, currently designated Countryside Area in the Oak Ridges Moraine Conservation Plan (ORMCP), to be redesignated as a Settlement Area.

Building on the Greenbelt

On 21 February 2023 Narwhal reported:

At least four landowners have asked to build on the Greenbelt since the province opened up 7,400 acres of the protected area for development last year, according to postings on Ontario’s environmental registry. Municipal Affairs and Housing Minister Steve Clark is staying mum on whether he will grant these requests.

Three of those landowners are developers — Marshall Homes, White Owl Properties and 1628755 Ontario Limited, which is run by the Durham-based Lysyk family — while the fourth is a church in Markham.

Wedding Reception

White Owl’s lobbyist, Nico Fidani-Diker, was a guest at Doug Ford’s daughter’s wedding reception.

In the light of this I am calling on Vegh to return the $1,200 to Blair McArthur without delay or prevarication.

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Update on 1 April 2023: Note that Blair McArthur contributed $1,200 on 1 February 2023 as an individual. Nevertheless he gave his White Owl business address: 180 Renfrew, Suite 120, Markham, On L3R 9Z2. Corporations and trade unions are not permitted to make contributions to candidates.

Update on 1 April 2023: From Newmarket Today: What candidates spent on their election campaigns

Details

Tom Vegh, Newmarket’s Deputy Mayor and Regional Councillor, who was convincingly re-elected last October, is no longer bankrolled by people in the development industry. 

Vegh’s election return which sets out his election income and expenses was filed with the Town yesterday, just ahead of Friday’s deadline. 

His initial and supplementary filings show: 

None of the development industry big names who bailed out Vegh in 2018 and saved him from disqualification for overspending appear in the latest list of contributors. The only name which appears twice is Blair McArthur who is Chairman of White Owl, an investment company in Markham focussing on real estate.

As in 2018, Vegh borrowed from the banks to pump-prime his re-election campaign. He got loans totalling $26,500 from CIBC and Scotia Bank. He paid $958 in interest to service these loans.

Extending the campaign to clear debts

Vegh told the Town Clerk he needed to extend his election campaign beyond the 3 January 2023 deadline (which is allowed) to allow him to raise the cash to clear his campaign debts. 

His initial filing covering the period from the election to 3 January 2023 shows Vegh and his spouse contributing $12,171 of their own money to the election campaign. Another $3,995 came from them in the way of goods and services. 

Three donors

At that stage just three other people had contributed to his campaign donating $2,000 in total. Two of them had given to his 2018 campaign and live in Ward 1 which Vegh represented as a ward councillor before being elected Deputy Mayor in 2018.

His final (or supplementary) filing shows Vegh and his spouse contributed $12,310 in money and $3,995 in goods and services to his campaign - $16,305. This is $936 below the $17,241 limit on self-financing.

A Family Affair

Vegh received 10 donations from 3 January 2023 to 27 March 2023. Only one of those has a Newmarket address – Bianca Vegh who is Tom Vegh’s daughter. 

Other family members who donated include Alexander Vegh ($1,200); Vincenza Polizzi ($1,200) who is the mother of Tom Vegh’s wife, Angela Vegh, and Antonia Bambina ($1,200) who is the sister of Angela Vegh.

No small donors

The filing shows that no-one gave Vegh any donations under $100. The smallest donation was $500.

As I say, Vegh carried over $3,995 in inventory from his 2018 election. In 2022 he spent $3,716 on advertising ($8,590 in 2018); $16,852 on brochures and flyers ($25,358 in 2018) and $2,250 on signs ($11,472 in 2018).

No meetings

As in 2018 Vegh held no public meetings.

Conclusion

Vegh spent $27,312 on his campaign for re-election and could not self-fund as this would breach the $17,241 limit. He could not raise enough money to close the gap within the election campaign period. After 3 January 2023 he relied on people living outside Newmarket (except one) and family members.

I do not know if any of his donors have done business with the Town in the past but I assume not. During the campaign he vowed not to take money from anyone who may do business with the Town.

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Update on 30 March 2023: Give the money back

Update on 1 April 2023: From Newmarket Today: What candidates spent on their election campaigns

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