Ex-minister mute on bailout of golf club
Archie Lang, the former Community Services minister who backed the covert bailout of the Mountain View Golf Club in 2011,
By Christopher Reynolds on November 28, 2014
Archie Lang, the former Community Services minister who backed the covert bailout of the Mountain View Golf Club in 2011, refused to answer questions around the agreement when approached by the Star this week.
Meanwhile, the two heads of Whitehorse’s rival golf courses gave opposing views of how the deal was handled.
The controversy ignited in the legislature Wednesday after the NDP revealed the previous Yukon Party government paid $750,000 to quietly buy back its own land, leased by Mountain View in 1997.
“I don’t have anything new on that,” Lang said outside the legislature Thursday afternoon when when the Star asked him to discuss the issue.
“Maybe the next time I get elected.”
Lang repeated the line as he hurried toward the building entrance and disappeared down a flight of stairs.
The government stated in internal documents it had the city’s support for the buyback and wanted the riverside property for future lot development in the Whistle Bend subdivision.
The agreement, which allowed the non-profit golf club to eliminate its sizable debt, went through despite city officials’ express disinterest in expanding Whistle Bend via the Mountain View lands.
A feasibility study also noted much of the 51-hectare parcel was unsuitable for development.
“It was a coverup. There’s no two ways about it,” said Jeff Luehmann, who owns Meadow Lakes Golf and Country Club and uncovered documents and correspondence related to the buyback under access-to-information laws.
“They (Mountain View) didn’t do anything wrong; it’s the government.”
Lang was looking to “help” Mountain View, according to an email chain between several top civil servants.
“I should add that I just had a call from Minister Lang’s office inquiring about ... the issue of how we could help the Golf Course,” wrote now-retired top administrator Ray Hayes to both the deputy minister and assistant deputy minister of sustainable resources at Energy, Mines and Resources (EMR) in June 2010.
“The premise here is to deal with the (Mountain View) debt load,” EMR’s planning and development manager stated in a July 2010 letter to the assistant deputy minister.
That “premise” is not the one that would be presented to the public, however.
An EMR “alert” from Oct. 8, 2013 — approved by the deputy minister and prompted by questions from Luehmann — states that “suggested responses” to “public or media inquiry” read as follows: “this land was a prime location for the future expansion of the Whistle Bend residential project” and the buyback had “support from the City of Whitehorse.”
Both those assertions go against the grain of government correspondence as well as the city’s view that changes to the Whistle Bend subdivision plan seemed to “accommodate the Golf Course at the expense of the development.
“I have heard various reasons but one is clear in that it is coming from the top down,” according to a June 2010 email from a city official to the Community Services deputy minister.
“The whole thing does not make a lot of sense to me. What we have said is if changes are requested then YG should request them through City Council.”
Luehmann pointed to the Mount Sima ski hill, another non-profit that got a cash boost from the government when it found itself in dire financial straits in 2013.
“They got raked over the coals,” he pointed out.
“They had to open up their books. They had to drum up all kinds of support and plead with the government in the open.”
The 20-year-old ski operation was slated to close last year due to financial problems until the Friends of Mount Sima group formed to draw funding from the Yukon government and the city to pay off its debts.
In a flurry of public support, skiers pledged to buy 800 season passes, along with other donations, in late October 2013.
That gave the society’s board fully half the money it needed to run the hill for the entire season, about $500,000 — precisely the same amount Mountain View received from the government behind closed doors to pay off its own debt (the remaining $250,000 it was allowed to keep for itself).
“Even if they were in the right to do what they did, they still circumvented all those steps by the city,” Luehmann said of the government regarding Mountain View.
Tom Amson, president of the Mountain View non-profit society when the lease buyback went through, described the deal as “a great thing” spun as “something ugly.
“It basically saved the golf course. So if people don’t want the golf course, I guess it’s a bad thing. I don’t see anything that was underhanded.”
Amson noted the course costs about $850,000 a year to operate and maintain.
“We were going to go under because we had incurred debt and we were having trouble paying wages and servicing the debt,” he said in an interview Thursday.
He attributed the liability in part to “bad management” — “we had a couple bad managers who stole, basically.”
Mountain View’s annual summer pro-amateur charity event has raised about $300,000 for the Yukon Hospital Foundation’s cancer fund over the past four years, Amson added.
“I put 17 years of my life into that golf course, and for somebody to try to smear it pisses me off, to put it mildly. There’s a lot of people that have volunteered their time and effort, monumental effort.”
Scott Kent, the EMR minister, and Brad Cathers, the Community Services minister, said helping out Mountain View was no different than assisting any other non-profit and paved the way to expand Whistle Bend in the future.
“What we’ve seen with this is a case of the government of the day working to meet the express needs of Yukoners at that time,” Kent told the Star Thursday.
He recalled the heavy pressure on governments to stimulate home building in 2010, with the Whitehorse Chamber of Commerce and the Yukon Real Estate Association “clamouring for developable lots around the territory.
“It’s an incredibly important piece of recreational infrastructure to this territory,” he added of the golf club.
Kent cited non-profit societies that have received last-minute financial help in the past like the Fetal Alcohol Syndrome Society Yukon (FASSY), the Mae Bachur Animal Shelter and the Yukon Family Literacy Centre.
Cathers noted that neither he nor Scott were cabinet members when the lease buyback occurred. Cathers had left the caucus to sit as an independent after a fallout with then-premier Dennis Fentie.
“It appears that this was done both for the purposes of installing storm water drainage system and a perimeter trail (around Whistle Bend), as well as ... funding to address (Mountain View’s) mortgage.”
Cathers added he was continuing to talk with officials to get more information on the deal.
Nowhere in the 2010-11 supplementary budget is the $750,000 buyback identifiable, though much smaller capital expenditures — adding up to $54 million and $5.5 million in Community Services and EMR, respectively — are listed.
A feasibility study from December 2010 stated less than 60 per cent of the 51-hectare parcel was suitable for development.
Even within the available 30-hectare area, “limitations” like “site servicing” via well and septic systems, among other obstacles, were noted.
See editorial.
Comments (16)
Up 15 Down 5
MR on Dec 1, 2014 at 5:58 pm
Dear Frozen! Indeed, very nice lots! What is in the question here is government corruption! Not the developed of lots by PRIVATE enterprise that was open and transparent! You sound like a sniveling servant deflecting blame to someone else!
Up 21 Down 7
Jwhite on Dec 1, 2014 at 3:21 pm
My recollection of the meadow lakes situation isn't that of Longtimeyukoner or Deeply Frozen. As I recall, the land was leased, a golf course was constructed, with the intent of another 9 holes. When that intention changed, the lease ended. The property was purchased at market value. My memory is that all of that was transparent. I recall the discussions at public hearings into rezoning, too. That is a very different situation than the government quietly giving 3/4 million $ to a club and somehow trying to connect it to that club giving up a lease that was going to expire anyway, and for which they were paying $125/year.
Up 29 Down 2
Yukoner 3 on Dec 1, 2014 at 1:55 pm
The golf course situation is like that of Mt.Sima.....it should be user pay since only a very small segment of the population uses it. The average joe should not have to fund the Yukon Party Elite Country Club.
Up 20 Down 11
Deeply Frozen on Dec 1, 2014 at 11:17 am
I fully realize that this issue is one that does require looking into as to how that vast sum of money could be so directed at nothing but a whim of the Minister looking at aiding the course (as a golfer, I'm very happy to have the 2 courses available for play). But another question that I have on a similar thread is why has nobody asked the 'impeccably innocent' and 'fact finding crusader' Mr. Leuhmann as to how he has been amazingly able to create his little slice of subdivision heaven? Was there not an original intention when his land was originally leased to him that there would be a back 9 holes constructed? But somehow, once he's granted title to the land under that intent, the struggles and strife of the private sector 'forced' Mr. Leuhmann to sell his lots for a hefty sum... I guess this is an example of Mr. Pot pointing out just how dark Mr. Kettle is...
Up 20 Down 12
longtimeyukoner on Dec 1, 2014 at 8:00 am
I find this situation of the pot calling the kettle black quite interesting. Do we not remember that Mr. Luehmann was the beneficiary of an exclusive deal/zoning of land to build an 18 hole golf course but ony developed 9 holes and selling off the other 9 holes worth of land for a very hefty price and an equally hefty profit?
The government was not transparent, nor necessarily acting in the best interests of the taxpayers and if it came from the "top down" as indicated then ex-Minister Lang should have to face investigation to fit his misappropriation of Yukoners' funds. With a Whistleblower legislation in place the employees who had knowledge of this could have come forward on their own, so let's see how that rolls out.
Although the Meadow Lakes property sale may no longer be centre stage, and Mr. Luehmann may take this opportunity seize the limelight as the "concerned citizen" to expose this shady deal, his own lack of transparency is still fresh enough in the mind of this long time Yukoner to suspect it is all an act motivated by sour grapes, and deserving of rotten tomatoes.
Up 26 Down 19
The NDP not believable spin machine on Nov 30, 2014 at 3:46 pm
The NDP will not support the Yukon little people who try to support services to all Yukon people. NDP are putting out misnomers to the facts and are just playing politics for the purpose of trying to gain voters. People of the Yukon do not be influenced by facts of the NDP that are not true. But look at what is good for all Yukoner's not what the NDP lack of the real understanding of government!
Up 32 Down 5
Mike Smyth on Nov 29, 2014 at 2:32 pm
I have spend my adult life paying tax. That counts for something and many people say the same thing!
This process was not transparent and it needs to be officially investigated (i.e. RCMP) to clear the air. Who cares if it was the previous government and a retired minister, we have to get to the bottom of what took place.
When elected officials misrepresent what they have done it undermines democracy and our confidence in our elected officials. How many other examples are there like this and are there some which involve more deception and dishonesty?
Up 29 Down 23
MR on Nov 29, 2014 at 12:51 pm
To mr Kent and Mr Cathers, FASSY, Animal Shelter and Family Literacy Program are NOT in competition with private enterprise. THE handout to MVGC is! Check the mandate for Non Profit Organizations and how it pertains to private business competing with government, other than fact Private is run more efficient
Up 41 Down 27
Hard for Gov't to make decisions in smaller community on Nov 29, 2014 at 11:42 am
Lots of non profit organizations are getting some type of Gov't support over the years, museums, ski hill, golf course and all the other listed in the piece. In a close knit community it is difficult for any gov't, be it City or Yukon, not to do something to help those that have been there for a long time. There is no right or wrong decision in this case but just a decision. What is wrong here is trying to make this subject political because all that is doing is making other organizations like FASSY harder for any gov't to support. NDP this is not right period and I am saddened of why the NDP would ever make this type of statement which is left wing lending which would be their normal approach to help non-profit groups.
Up 43 Down 36
Micheal Robinson on Nov 29, 2014 at 11:18 am
Archie Lang is an arrogant piece of work, where is the conflict of interest here, Politicians, past Presidents of MVGC, current President of MVGC ( Tony Hill ), current premiere of Yukon are all members of MVGC and hold government jobs ! It's a joke !
Up 31 Down 3
Micheal Robinson on Nov 29, 2014 at 7:55 am
It appears that the government employees involved insist the transaction was above board and transparent and all you had to do was ask! It also appears that those Us/taxpayers insist it was not above board or transparent but underhanded, fraudulent, and basically theft! As taxpayers do we not have the right to demand an RCMP investigation into the transaction and as many say on here "follow the paper".
Up 39 Down 3
north on Nov 29, 2014 at 7:00 am
Why doesn't someone ask Lang why he ordered community services to pay the contractor for work that was not completed for the Old Crow River Bank protection project. I'm sure a freedom for information request would relieve some interesting or lack of information on this item.
Up 25 Down 2
June jackson on Nov 28, 2014 at 11:33 pm
Of course he isn't going to say anything..why do all our governments seem to be so underhanded?
Up 31 Down 2
melba on Nov 28, 2014 at 10:45 pm
They did not need to buy the land, the lease was about to expire. So let's drop that bull right now.
The only one of the pack of them who I trust is Tom Amson. Straight talking, honest, and not keeping secrets. I'm listening to what he has to say about the golf course being bailed out, the volunteering, and what the association has given to the community over the years. And the honest assessment that there were crooks running the place into the ground for a period of time. Therefore assuming they are gone, the problems should not repeat themselves.
As for Archie scurrying down the stairs and pretending he'll ever be elected again - who cares what he has to say. Like he said, he's out of the game. He never gave a straight story then and he's not about to now.
Up 31 Down 4
Michael Robertson on Nov 28, 2014 at 6:43 pm
Further to Mr Amson's comment that he justifies the $750,000.00 by saying the pro am raised $300,000 over 4 years for the hospital foundation, wouldn't that money be better spent by giving it to the hospital foundation? A lot more Yukoners would benefit more from that than approximately 300 MVGC members .
Up 39 Down 32
Michael Robertson on Nov 28, 2014 at 6:21 pm
What pisses me off Mr Amson is the government stole money from the taxpayer ! And an RCMP investigation should be conducted . Period !