John Tory wants full review of Section 37 contributions
CBC News investigation prompts questions into developer donations to
councillors
CBC News
15 January 2015
A report on Section 37 contributions has prompted Toronto Mayor John
Tory to call for a review of the practice.
Section 37 benefits are donated by developers when new construction is
approved, often money to be used at the local councillor's discretion
for neighbourhood upgrades. Only, as CBC's John Lancaster and Sarah
Bridge discovered, there is little oversight of what happens to the
money.
In one case in Mimico, $250,000 promised by a developer was reduced by
$100,000 according to the community.
"I think we need much more transparency and I think we need to have a
good, hard look at the Section 37 regime," said Tory after a speech on
Thursday.
Tory added he thinks some of the money should go to public housing
repairs and new builds.
This is not the first time Tory has questioned the Section 37. Tory
said in the municipal election he wanted transparency and
accountability around the deals councillors make with developers for
their wards in exchange for the right to build taller buildings.
Reference
Here is an earlier CBC News story on concerns about Section 37 money.
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Integrity Commissioner finds Coun. Mark Grimes had 'improper' relationship with developers
CBC News
By John Lancaster
07 July 2016
Toronto's integrity commissioner has issued a warning to all city
councillors after finding Coun. Mark Grimes breached the city's code of
conduct and improperly used his influence in his dealings with two
developers building condominium projects in his ward.
The integrity commissioner's 17-month-long investigation was launched
when a citizen filed a formal complaint after a series of CBC News
reports last year. It looked into Grimes' relationship with several
developers, and examined how one developer was allowed to forego paying
$100,000 in community benefits after Grimes urged council to reduce the
developer's so-called Section 37 contribution.
Section 37 money is paid by developers building projects that are
larger than the city would normally allow. The monies are supposed to
go towards community projects, to offset the increased traffic and
strain on infrastructure a larger development brings.
In her report, Integrity Commissioner Valerie Jepson found that condo
builder Davies Smith Developments had originally reached an agreement
with city staff to pay $250,000 in Section 37 money, in exchange for
permission to construct 130 suites in a development at the corner of
Lake Shore Blvd. W. and Superior Ave.
But less than 24 hours before the agreement was scheduled to be voted
on by city council, Jepson found Grimes and the developer had worked
out a deal to reduce the payment by $100,000.
Jepson found Grimes did not gain personally from the $100,000
reduction, but said he tried to work out a "verbal agreement" with the
developer to make improvements to a nearby park in lieu of the full
$250,000. Councillors are prohibited from trying to negotiate legally
non-binding agreements.
Jepson found Grimes' actions constituted a breach of the councillor's
code of conduct that could shake the public's trust in the development
process.
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