Chief takes heat for land swap

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Fire Chief Reid Douglas brokered a deal to swap two old fire stations and another property for land owned by Shindico. (KEN GIGLIOTTI / WINNIPEG FREE PRESS ARCHIVES) Photo Store

The usual late-summer somnolence at city hall has been disrupted by a heated debate over a plan to swap two old fire halls and a plot of riverfront land for a single piece of private property.

In 2010, city council approved a plan to use the proceeds from the sale of two old fire halls on Grosvenor Avenue and Berry Street to offset some of the $15.3-million cost of building four new fire-paramedic stations in Sage Creek, River Heights, Charleswood and St. James.

Unbeknownst to a majority of councillors, Winnipeg Fire-Paramedic Service Chief Reid Douglas, then deputy chief, followed through on that plan. He brokered a deal to swap the Grosvenor and Berry fire stations -- as well as land along Mulvey Avenue East in Fort Rouge -- for a Taylor Avenue property owned by executives with the Winnipeg real estate firm Shindico.

The new Fire-Paramedic Station No. 12 opened earlier this year at the Taylor Avenue property, which remains in Shindico's hands. No transfer of ownership can occur before city council scrutinizes a forthcoming report that includes details of the land swap.

But the post-facto nature of the approval -- in addition to apparent confusion about the deal within the public service -- has councillors of various ideological stripes raising questions about the process behind the land swap as well as the deal itself.

"I need to see all the details of this deal," said council's finance chairman Scott Fielding (St. James-Brooklands), who has backed a plan that would see the Assiniboia Chamber of Commerce and St. James BIZ move into the soon-to-be-decommissioned Fire Station No. 11 on Berry Street.

"This deal might have made sense and I'm not necessarily opposed to swapping land, but this needs to come through the regular process and the proper channels."

The deal first surfaced publicly last week, when Shindico listed the old Fire Station No. 12 on Grosvenor Avenue for lease even though council had yet to declare it surplus. Initially, there was confusion among city officials about the property's status.

Winnipeg property director Barry Thorgrimson then said he had no knowledge about the deal, though city officials subsequently made it clear the real estate division assisted the fire-paramedic chief.

Douglas went on to raise more eyebrows on Monday when he told CBC Manitoba he did not follow standard city procedure when it comes to disposing of city property, and suggested he was trying to avoid bureaucracy. The chief also said he has a verbal agreement with Shindico that values the Taylor Avenue land at about $1 million.

Council property chairman Jeff Browaty (North Kildonan) said he found the chief's comments troubling, but has been assured the property department oversaw the deal.

As early as next month, council will consider a report with a recommendation to either proceed with the land swap or pay Shindico outright for the Taylor Avenue property.

"We're going to have to take a look at it," Browaty said. "We have the deputy fire chief going out and making deals. But locations are important, in terms of fire-paramedic response times."

Other members of council were less charitable. Fort Rouge Coun. Jenny Gerbasi said she has lost confidence in the city's ability to dispose of land. She repeated her call for an audit of the real estate division.

"We need to look at how real estate transactions have been done over the last few years," she said, noting Shindico's premature listing of the Winnipeg Square Parkade in 2009. "We've had major properties prematurely listed for sale more than once."

River Heights Coun. John Orlikow, whose ward includes both the old and new No. 12 fire stations, said he did not believe the fire-paramedic chief had the authority to broker land deals and certainly does not have the expertise.

Mayor Sam Katz, however, said the criticism of the deal is premature, insisting the real estate division has yet to crunch the financial numbers.

"What will happen is the department will determine the value of one piece of property and then the value of other pieces of property," the mayor said. "If they decide not to swap the land, then they just buy the land."

On paper, the city properties have a combined assessed value of $1.57 million, while the Shindico property is assessed at $461,000. But it's possible some chunks of the city properties will not be in play, city spokesman Steve West said.

Property valuations look at the best possible use, not assessed values, said Shindico president Sandy Shindleman, who described the proposed deal as a good one for the city.

"The facts of the sites were valued and a deal done," Shindleman said via email. "The chief is an honest man and drove a hard bargain to get the needs of his department looked after."

Requests to speak to Douglas, acting chief administrative officer Mike Ruta and officials from the real estate division were denied. West said it would be premature for city staff to comment on a report that has yet to go to council.

bartley.kives@freepress.mb.ca

HOLD YOUR FIRE?

IN July 2010, city council approved a plan to use the proceeds from the sale of old fire halls to help pay for new fire-paramedic stations.

This fall, city council will vote on a plan to swap three city-owned properties for one Shindico-owned Taylor Avenue property that's already home to a new fire-paramedic station. Some members of council have complained this deal was put together without their knowledge. Mayor Sam Katz says council can either approve the swap or a deal to purchase the Taylor property at fair market value.

WHAT THE CITY PROPOSES TO SWAP:

1710 Grosvenor Ave.

Currently: Vacant former fire station No. 12

Size: 11,000 square feet

Assessed value: $302,000

Owner: City of Winnipeg

200 Berry St.

Currently: Active fire station, to be replaced by a new hall under construction at Portage Avenue and Route 90

Size: 15,340 square feet

Assessed value: $213,000

Owner: City of Winnipeg

409 Mulvey Ave. East

Currently: Vacant property along the Red River, zoned for warehouse use, close to the Southwest Transitway's Osborne Station

Size: 4.2 acres

Assessed value: $1.054 million

Owner: City of Winnipeg

WHAT THE CITY WOULD GET IN RETURN:

1780 Taylor Ave.

Currently: New fire-paramedic station No. 12

Size: 2.1 acres

Assessed value: $461,000

Owner: A numbered company owned by Shindico executives Sandy and Robert Shindleman.

-- source: City of Winnipeg

Republished from the Winnipeg Free Press print edition August 29, 2012 A3