Land deal 'doesn't look good,' councillor says

The recently releasedfire hall audit report included damning information about how the city gave preferential treatment to local land developer Shindico.

For example, it noted a private conversation between former fire chief Reid Douglas and former CAO PhilSheeglon April 20, 2009, in whichSheeglapparently said, "I wantShindicoto build these fire halls."

Douglas was said to have replied, "Then lets [sic] hope they're the low bidder then," according to the report.

On Jan. 26, 2012, Douglas outlined the land swap in an email toSheeglandDeepakJoshi, the city's chief operating officer:

"My proposal to Bob for the Taylor site is as follows: We give them Mulvey, Berry andGrosvenorincluding a100Kforgive on the monies owing onGrosvenorresidual. They give us the Taylor property in its entirety. In my estimations it is1Msaw off," he wrote.

"Get it done,"Sheeglreplied just over an hour later.

Then on March 29, 2012, the city's real estate manager sent an email to BarryThorgrimson, the city's director of planning, property and development, seeking some "coaching."

"I need some coaching Boss," the manager was quoted to have said. "How are we doing to justify this land exchange[?] This deal favoursShindicoby about $1.03M."

The manager also wrote, "We did advise Reid [Douglas] early on not to include theMulveysite and rather just include the other two fire halls and pay the balance in cash. Also, there are complications withMulvey(ie. lane widening required, variances, subdivide out Harbour Master)."

According to the report,Thorgrimson"apparently advised" the real estate manager to meet withSheegl.

'It doesn't look good,' says councillor

Mayor Sam KatzandSheeglhave long been known to be friends, whileKatzandShindicopresident SandyShindlemanwere co-owners of the WinnipegGoldeyesbaseball club for about a decade.

Katzsaid on Monday that he is no longer a business partner ofShindleman, but Coun. PaulaHavixbecksaid the controversy doesn't bode well for the mayor.

"It doesn't look good. He is so closely tied," she said ofKatz. "We know PhilSheeglis his friend. When we went through this hiring process, he asked most of us to support him for theCAO.

"Look at where we've come. City hall has never looked worse."

Coun. John OrlikowsaidKatzshould explain why he allowedSheeglto resign and walk away with a severance package last week.

"I would not have accepted his resignation,"Orlikowsaid. "Personally, if I was there I would have said, 'No, I'm not accepting your resignation. We'll wait until after.' He can choose to resign as well, but then you're not getting the package."

Orlikowsaid it's frustrating that council cannot question eitherSheeglor Douglas since they are no longer city employees.

The councillor added that he thinks the Manitoba government should intervene in the matter.

"It's pretty hard for us as a city hall now, when you have the mayor being such a close friend with theCAO, when all these people [are] involved, and all these other questions that keep laying out,"Orlikowsaid.

"We're hiding behind the confidentiality veil, that a third party, such as the province, may need to get involved."