DIDSBURY - A sitting town councillor says he will not resign from council after a local developer whose land is the subject of a legal dispute with the town said resigning "was the honourable thing to do."
At the regular council meeting on March 27 developer James Carpenter spoke during question period, stating that he had been told by several individuals that Coun. Mel Crothers had discussed in-camera information outside of council.
Carpenter said Crothers' words were slander and defamation of character and "have and continue to negatively affect my business in Didsbury. Mr. Crothers has put this town in a liable position and has grossly misrepresented taxpayers in his position of trust."
Carpenter then asked Crothers to do the "honourable thing and resign immediately and the Town of Didsbury issue an apology."
Crothers said in an interview after the meeting that he has never spoken about in-camera information publicly.
"Absolutely not," said Crothers. "I did not share in-camera conversations."
Crothers added that he has no plans to step down from council.
Industrial land that Carpenter owns is currently the subject of a legal dispute.
Town CAO Harold Northcott says the town “is involved in a legal dispute in relation to the industrial lots (Plan 0714629 Lots 2 - 7)” but would not further clarify the nature of the dispute.
While Carpenter owned all six lots at one time, Carpenter said he currently owns lots 4,5,6 and 7, while AltaMix Concrete owns 2 and 3.
A tax notification for tax arrears was registered on April 24, 2017 on the title of at least one of the lots that Carpenter still owns. It has not been confirmed if that notification has been removed from the title.
Residents have repeatedly asked council for financial disclosure on the town’s 2010 sale of the six lots to a now defunct company, questioning the appropriateness of some of its concessions and its implications on financial statements today.
The deal included an “unusual” way the lots would be assessed for property taxes, according to the CAO of the town at the time. The Town of Didsbury also issued a mortgage to the developer to buy the properties. As of last fall, the Town of Didsbury was still listed as a mortgagee on at least one of the lots now owned by Carpenter, if not more.
The land was registered as being transferred to Carpenter’s company, 852016 Alberta Ltd., on Sept. 19, 2014, according to a Historical Land Title Certificate for one of the lots.
Carpenter says his issue with the town stems from his inability to sell certain lots because of an “undisclosed” sewage pipe that, without further approval, prohibits building on top of it.
He said he discovered the sewer pipe running through the property in March of 2016 when excavating. He said that there was nothing on any maps prior to that. Around the same time he said he discovered that lots 6 and 7 were not serviced by water and sewer although he claims he was told that all the lots were serviced.
During the March 27 council meeting Carpenter also talked about a meeting on March 8 between himself, investor Gordie Reimer –– whose company Marco Contracting was awarded the six lots in a bankruptcy settlement five years ago –– Mayor Rhonda Hunter and Crothers in which they discussed trying to resolve the issues around the lots.
“This off the record meeting was to tell the town that I had basically given up and would do whatever the town wanted but to get the letter from the engineers saying we could build over the sewage line so I could sell the land,” he said.
Carpenter said during the meeting that he has been waiting for two years and 16 days for a resolution to the issue surrounding the sewer pipe as well as what he calls missing water and sewer services to lots 6 and 7.
Reimer also spoke to council and said he was indeed at the meeting with Carpenter, Hunter and Crothers.
“After a good discussion we agreed that just doing the right thing would be the best way to go forward and there would be no legal fight in this,” Reimer told council. “The mayor agreed that she would honour what was done before her time in selling the lots and they would be serviced and there would be a letter forthcoming (regarding the sewage line).”
Carpenter said in an interview after the council meeting that he has retained legal counsel but is hoping the town will "do the right thing" before he pursues legal action.
"I'm waiting and giving the town an opportunity to do what's right," said Carpenter. "The first thing would be for that councillor (Crothers) to resign and for them to provide the letter that says I can build over the land and facilitate a sale on lot 7. If I have to pursue them for legal action then I will be pursuing them for lost sales in excess of $860,000 plus damages plus defamation plus lost business opportunity plus plus plus."
The mayor said she would not comment on the land or the sewer pipe due to "legal issues."
Hunter did say that she and Crothers met with Carpenter and Reimer at their request. Northcott was not present at the meeting.
"It is not unusual that members of council would meet with a resident/developer to listen to what they have to say," said Hunter of the meeting. "Councillor Crothers and I were able to meet with Mr. Carpenter and Mr. Reimer to hear their information."
Hunter said council is supportive of Crothers and stands behind him.
"Councillor Crothers is a highly respected and well-liked resident and businessman in Didsbury and a valued and respected member of council," she said. "I have every confidence that Councillor Crothers represents our residents and business people, the Town of Didsbury, himself, and this council with utmost professionalism and in the best interests of Didsbury at all times and in all situations. Anyone who knows him knows this is true."
