Trouble piles up for Manitoba grand chief at helm of Bay project Recently reinstated Daniels at centre of legal battle over separate land deal By: Tyler Searle Posted: 4:55 PM CST Wednesday, Jan. 29, 2025

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This article was published 29/01/2025 (621 days ago), so information in it may no longer be current.

A Manitoba grand chief who was recently reinstated after an altercation in Ottawa and is at the helm of the massive downtown Bay store redevelopment is engaged in a legal battle involving a multimillion-dollar land deal in east Winnipeg.

Legal documents, filed in the Court of King’s Bench between November 2023 and August 2024, detail ongoing litigation between Southern Chiefs Economic Development Corp., Grand Chief Jerry Daniels and a private company registered in Manitoba.

The numbered company, which filed a countersuit and statement of defence after being sued, accuses Daniels of defaulting on a personal loan and then saying he could “influence the progress” of the $20-million land deal, if the company demands he repay it.

Court documents say Daniels was acting on behalf of the development corporation during negotiations to purchase five parcels of land on Dugald Road that were owned by the numbered company.

The company received a $100,000 deposit from the development corporation on May 1, 2019. The multi-acre property was to change hands by Dec. 15, 2020, the documents said.

The countersuit claims Daniels approached the company in 2018 after a letter of intent had been executed for the sale. He requested a personal loan in the form of a mortgage for the purchase of a condo unit in Winnipeg.

The company agreed to provide the mortgage through an associated corporation and Daniels purchased the residence, the suit said.

“During the period while development efforts were ongoing, Daniels went into default under the payment terms several times,” it said.

“On numerous occasions, Daniels advised that he could influence the progress of the transaction agreed on if the (numbered company) did not desist in its demands (for payment).”

“Ultimately, Daniels as directing mind of the (purchase negotiations)… advised that this property transaction would not proceed further.”

The countersuit did not indicate the amount of the personal loan. It said Daniels secured other financing to buy out the debt owed.

The land deal died, and SCO’s development corporation sued the numbered company in November 2023, demanding it return the $100,000 deposit.

That legal action sparked the statement of defence and countersuit, which were filed in May 2024.

The countersuit seeks an order for SCO’s development corporation to forfeit the deposit and pay $766,000 in damages.

It claims the numbered company undertook several steps in anticipation of the land deal, including submitting applications to the City of Winnipeg, hiring engineers and technical experts and entering into commercial agreements with neighbouring landowners.

SCO’s development corporation replied to the countersuit with a statement of defence in August 2024.

It admitted Daniels had obtained a personal mortgage for a condo from a corporation related to the numbered company, but said the grand chief was approached first.

It denied Daniels defaulted on the mortgage.

“In any event… the details of grand chief Daniels’ personal mortgage with a non-party to this litigation are wholly irrelevant,” the statement of defence said.

The statement denies Daniels said he could influence the land deal.

The claims haven’t been tested in court.

The SCO website says it formed its development corporation in 2018, shortly after Daniels was elected grand chief. It’s intended to “enhance the economic base” of its 33-member First Nations in southern Manitoba and create employment for their citizens.

Provincial records show the Manitoba Companies Office disbanded the corporation in March 2024, after it failed to file its annual returns two years in a row.

Daniels is listed as the director of the development corporation.

Multiple sources told the Free Press Daniels was involved in an altercation outside a bar in downtown Ottawa on Dec. 3. He later issued a public apology and said he would seek treatment for alcohol use.

Chief Cornell McLean of Lake Manitoba First Nation was temporarily named acting chief, until Daniels was reinstated as leader this month.

SCO welcomed Daniels back in a post on social media on Jan. 23, saying his “commitment to advancing the goals of our SCO Nations, chiefs, and SCO staff remains unwavering.”

The day after his reinstatement, Daniels announced SCO chief executive officer Joy Cramer and chief operating officer Jennifer Rattray had been placed on leave. Ryan Bear was appointed as acting CEO, said an internal memo obtained by the Free Press.

Bear is listed on SCO’s website as chief executive officer of its development arm.

On Wednesday, a spokesperson for SCO declined to comment about Daniels, the litigation and the departure of senior staff members.

SCO is involved in a $200-million development project to transform the former Hudson’s Bay Co. building in downtown Winnipeg.

The Free Press has requested comment from all three levels of government, which have each contributed funding and tax incentives to the project.

At an unrelated news conference, Premier Wab Kinew said he had no personal knowledge about the allegations circling around Daniels and therefore could not comment.

“Southern Chiefs Organization is somebody that’s a valued partner for us,” he said.

Chris Minaker, the director of policy, planning and external relations for Prairies Economic Development Canada’s Manitoba region, said The Bay project is a “transformational development in the heart of Winnipeg’s downtown” and “an example of economic reconciliation.”

He did not comment on Daniels.

The City of Winnipeg similarly declined to comment, but confirmed there have been no changes to its commitment to support the redevelopment.

tyler.searle@freepress.mb.ca