An investigation has uncovered some irregularities in how permits were granted to developers on Nuns’ Island – actions that could have cost the borough of Verdun millions.
Close to downtown, Nuns’ Island is a developer’s dream, and condo high rises have sprouted up in the last decade to meet the market demand. The prime real estate advertises luxury living.
According to a 2012 investigation by Montreal's controller general, however, they were vastly undervalued by the developer.
In the permit stage, real-estate developer Proment declared it would cost $30 million per skyscraper.
The final cost was much higher -- and so was the building, which ended up growing to three storeys more than regulations allow.
Other irregularities unearthed by the report found that general contracting company Canvar Inc. built an underground garage above ground, saving the developer hundreds of thousands of dollars in permit costs.
According to the report, these irregularities were aided and abetted by a cozy relationship with the borough.
The file was handed over to the province's anti-corruption squad UPAC over a year ago. In February, three officials were suspended with pay, though no charges were laid.
Now the borough’s priority is recouping lost revenues, said Verdun Mayor Francois Parenteau.
“Every dollar counts,” said Parenteau, adding that three developers owe at least $1.5 million to the borough.
Parenteau said these activities occurred between 2004 and 2011, before he was elected borough mayor.
“It was really close, the relationship between some people in the [borough council] and some promoters. That's why,” he said.
Though he wouldn't name names he says he's cleaned house.
UPAC can't comment on the report or investigation but Proment's president Samuel Gewurz said they were shocked by the revelations.
“There's never been any impropriety in any of our dealings with the city of Verdun. Over the last 30 years, we've dealt with four different mayors, four different city councilors, and civil servants, and the relationship has always been a dynamic one,” he said in a phone interview with CTV Montreal.
The company later issued a release saying they haven't been contacted by UPAC or the controller general.
In the meantime, Parenteau said the borough made some changes to ensure developers pay.
”We have a gate between (us). It's not buddy-buddy any more. It's professional,” he said.
UPAC's investigation into the administrative irregularities continues.
