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Dennis Fentie and Diane McLeod-McKay

Yukon Party regime tried to keep bailout a secret

The Yukon Party government fought the release of documents related to the buyback of its own land from Mountain View Golf Club,

By Christopher Reynolds on December 1, 2014

The Yukon Party government fought the release of documents related to the buyback of its own land from Mountain View Golf Club, resulting in an independent inquiry and a months-long battle for records that eventually saw the light of day.

One of those documents suggests former premier Dennis Fentie was aware of the deal.

The arrangement saw the government quietly hand over $750,000 to Mountain View to discharge its sizable debt, provide an additional cash boost and put a 51-hectare parcel of land — leased by the course in 1997 — back in government hands.

The agreement went through on the premise Whitehorse could use the “prime location” to expand the Whistle Bend subdivision, despite the city’s stated disinterest in the lands and a feasibility study that found them largely unfit for development.

On Christmas Eve of 2013, Diane McLeod-McKay, the information and privacy commissioner, launched a review of the Community Services department over its refusal to grant access to dozens of documents requested by Jeff Luehmann, who runs Meadow Lakes Golf and Country Club — the privately owned rival to the non-profit Mountain View.

Luehmann had requested copies of “all records and information regarding land transactions ... between Government of Yukon and (Mountain View) from 1998 to present.”

Community Services extended the 30-day deadline by another month to Dec. 10, and then failed to get back to Luehmann by that date.

Territorial legislation states a failure to respond in time “is to be treated as a decision to refuse access to the record.”

McLeod-McKay’s 36-page report, released in August, found that Community Services “had no authority ... to refuse access to the records or part thereof.”

The report, released last August, noted Community Services “questioned my authority to proceed on the review.”

Copies of 52 separate records relating to the deal were eventually handed over to Luehmann.

The government had argued that the documents contained both confidential business information and personal information, like the emails of non-government employees. Releasing them would be tantamount to “an unreasonable invasion of personal privacy,” Community Services stated.

Four of the records were “letters written to Yukon Government employees and the Premier by Third Party representatives,” McLeod-McKay wrote.

Archie Lang, then minister of Community Services 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.”

Scott Kent, the EMR minister, and Brad Cathers, the Community Services minister, told the Star last week 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 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.

Comments (22)

Up 15 Down 2

MR on Dec 5, 2014 at 6:01 am

TO Sawmill ---- your right, it's not a secret ---- anymore! The "coming down from the top" mentality involved a lot of grunts within the government, one of these grunts apparently has morals, values and ethics and decided to let JL know where to look! The hospital bail you mention is a whole different story ----- but I will add the hospital benefits the entire Yukon! The golf course is used by a handful of affluent citizens and as a non-profit society should not be in direct competition with private enterprise ----- this is the reason the Yukon party golf team decided to hide it !

Up 29 Down 1

north_of_60 on Dec 4, 2014 at 3:40 pm

Politicians and diapers should be changed frequently, for all the same reasons -- Mark Twain

Up 5 Down 8

Wilf Carter on Dec 4, 2014 at 1:01 pm

Hi Lost in the Yukon, can you email me at wilf_carter27@hotmail.com

Up 19 Down 3

Canadian Criminal Code on Dec 4, 2014 at 12:44 pm

I just spend a week in a adjudication that broke the mold on such areas as natural justice, procedural fairness. From my last five years experience with the Government; I ask myself why do we have laws in Canada and who is going to enforce them? Top of that list is violence, harassment, threats, fraudulent statements just to name a few. People of the Yukon if you really knew what is going on in government I think you'd get sick because I am sick because of government actions.

Up 22 Down 3

Lost in Yukon on Dec 4, 2014 at 9:06 am

You decide, from the Canadian Criminal Code:

Breach of trust by public officer
122. Every official who, in connection with the duties of his office, commits fraud or a breach of trust is guilty of an indictable offence and liable to imprisonment for a term not exceeding five years, whether or not the fraud or breach of trust would be an offence if it were committed in relation to a private person.
R.S., c. C-34, s. 111.

Elements of Offence
The Crown should prove the following:[1]

1.The accused is an official;
2.The accused was acting in connection with the duties of his or her office;
3.The accused breached the standard of responsibility and conduct demanded of him or her by the nature of the office;
4.The conduct of the accused represented a serious and marked departure from the standards expected of an individual in the accused position of public trust; and
5.The accused acted with the intention to use his or her public office for a purpose other than the public good, for example, for a dishonest, partial, corrupt, or oppressive purpose.

R v Boulanger 2006 SCC 32 at para. 58

Up 21 Down 3

north_of_60 on Dec 3, 2014 at 7:05 pm

No money available for affordable housing or sustainable recycling, but 3/4 of a million for your golfing buddies, no problem.
This regime is a travesty of government, long past it's best-before-date.

The opposition should force an election.

Up 9 Down 6

NDP Bailout of Sawmill on Dec 3, 2014 at 5:03 pm

I think the difference here is that it was not secret, no one tried to hide it. May have been a really bad decision but it wasn't hidden and may in fact been debated during the budget that year. Just like Doug Graham giving the Hospital $27,000,000 to pay down their debt.

Up 18 Down 2

Community Services on Dec 3, 2014 at 4:54 pm

Community service would not provide the information, typical YTG administration hide and try to cover up the truth from voters. This is one of many cover up by patches of YTG administration to cover up wrongdoing, that is why there is a new wrongdoing act coming that will have no teeth like all the other acts in the YTG.
All YTG acts are written by the employer for the employer. Time for a new gov't and new policies that support the people of the Yukon.

Up 18 Down 7

Talk about Bail outs on Dec 3, 2014 at 4:48 pm

Look at the $15 million dollars bail out of the saw mill in Watson Lake under the NDP. Government does what they think is right at the time and other parties try to make political miles on it. Nothing changes other than the people. People get the same old crap and the senior administration just continues on collecting their pay chegue. What is old is new.

Up 10 Down 2

woodcutter on Dec 2, 2014 at 6:15 pm

bahahaha, at least the Yukon party didn't sell it to themselves, like the socialist sold the water front to themselves. Wait tho, perhaps the neo conservatives will sell this storm drainage and perimeter trail to themselves, on their way out. Wait Josey, you got it right, I can feel a future awkward walk for all us shortly

Up 32 Down 5

MR on Dec 2, 2014 at 2:04 pm

@ Steve G .... You are totally missing the story, the Government bought land they already owned, so NO! It's not a good deal! This cost taxpayers $6000 an acre that should of been used for FASSY, Animal shelter,low cost housing, Salvation Army, you pick the cause! Not MVGC! Who should be raising golfing fees and memberships in order to meet there deficits, it's called user pays !

Up 28 Down 3

MR on Dec 2, 2014 at 12:05 pm

Kent "sited non-profit societies that needed last minute financial" blah blah blah! MVGC was so far from last minute I almost fell off my golf cart I was laughing so hard! Last minute is a week a month or a day! This is premeditated over years! Kent and Cathers, are guilty by association, they're worms crawling around in the dirt trying to protect the other worms! And has anyone clarified what is A Perimeter Trail and Storm water drainage system? This somehow justifies a $750,000 bail out for a non profit! Who benefits from this non profit, other than the members who receive under valued golf memberships 310 members as per Tony Hill president of MVGC and Civil Servant! And we laugh at the Fords gong show!

Up 11 Down 10

Golf Lover on Dec 2, 2014 at 10:33 am

It's too bad that this is all coming out the way it is. I love golfing and I enjoy both courses, so it's sad to see when the golfing community is tarnished like this. Each course is different from the other. Mountain View has the longer holes and 18 of them, and also has great practice facilities. Meadow Lakes is an aesthetically pretty little course with nice big greens and a neat log cabin club house. I give both places as much business as I can. I would love to see both facilities be viable well into the future. Who really suffers from the mismanagement and secret deals is going to be the users of these facilities. These courses should be complimenting each other, not be portrayed as rivals (like what is being said in these articles). It is not fair to compare them, as both courses offer a totally different product and experience. I think the only golf course that hasn't received any "favours" over the years is Annie Lake. I would love to see the Government put some money into developing Annie Lake into a proper golf course....but that's just the pipe dream of a passionate golfer.

Up 7 Down 31

Steve G on Dec 2, 2014 at 9:53 am

$6000 an acre seems like a pretty good deal to me.
Watch, next week the NDP is going to complain that the big mean Yukon Party took advantage of a cash strapped non profit.

Hey Whiners, you can't complain in 2009 about lack of land for housing, then in 2014 complain that the government tried to do something about it, especially when:
1. The taxpayers got the land for way under market value.
2. This 'scandal' was brought up by Mountain View's competitor (whose history with land deals and land usage isn't so black and white)

Steve G

Up 13 Down 1

Josey Wales on Dec 2, 2014 at 9:16 am

YP...Liberals...National Destruction Party, folks they are all the same personalities.
What they have in common?
They lie, elude, spin....man do they spin, self serving, think only in 3-4 years blocks of time and many many more disparaging "ol' Josey" thoughts....

Another similarity folks...they will all do fine, kinda like 15th century nobles in England....whilst we struggle to get dinner on our plates and keep a roof over our heads.
In all reality not much has changed since those times, look at our bloated and insatiable "civic government/blowholes"...they TRULY do feel we work for them via their hands in every pocket, every nook and cranny, vacuuming every nickle out.
IMHO Canada AAAAND the Yukon are in a race to the bottom as a direct result of this set of political ideals, and our passive tolerance for the sodomizing we get.

Up 27 Down 1

Yukoner on Dec 2, 2014 at 6:48 am

You know, if they had just bailed them out, as others have been bailed out (Sima etc), this would have all blown over, but the idiocy on this contrived bail out scheme really is sad. Who came up with this?

Up 0 Down 7

Anon on Dec 1, 2014 at 9:53 pm

If that's not fiscally responsible, I don't know what is.

Up 35 Down 5

Yukon party has to go on Dec 1, 2014 at 6:49 pm

They have no morals, no ethics, and no longer have the support of the vast majority of Yukoners to govern. It is amateur hour ... demand they call an election.

Up 27 Down 2

MR on Dec 1, 2014 at 5:44 pm

Open and transparent, what a load of crap. If it was open and transparent MVGC would not have received the $$$$. That's the old boys club for you. Government employees on the board of MVGC, government employees spending taxpayers money for the benefit of their own agendas! How can this not be investigated by the auditor general! Where there is smoke, there's fire! Nothing to hide, eh?! Well open the books then .

Up 16 Down 5

Brian on Dec 1, 2014 at 5:28 pm

Who friggin cares, the Fente crew were slippery, we all know that.

Up 34 Down 2

Mike Smyth on Dec 1, 2014 at 5:19 pm

Lets get this into perspective.
It was a previous Minister and government which created this deal and funding for the golf course.

But the current Yukon Party government fought the release of documents related to the buyback of its own land from Mountain View Golf Club.
This does not represent the actions of an open and transparent government.

Up 41 Down 2

Cathers and Kent have to resign on Dec 1, 2014 at 5:11 pm

Given the new information of how the Pazlowski government tried to suppress this only 1 year ago the only conclusion you can reach is that Kent and Cathers have been deliberately misleading in the House.

Their resignation should be demanded or whatever credibility this government has left is gone.

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