Sarah Rennie – LJI reporter

An investigation by the Direction des Enquêtes et des Pursuits en Intégrité Municipale (DEPIM) of the Commission Municipale du Québec has concluded the town of Huntingdon committed wrongdoings in its allocation of tax credits and financial assistance to businesses.

The report, issued by the commission’s municipal integrity investigations and prosecutions branch on October 31, reveals that the town granted a tax credit over ten years to Greenvest Enterprises Inc., the developer behind the restoration of the O’Connor Building, without having first passed a bylaw authorizing it to do so. The report also alleges that financial assistance offered to businesses exceeded the limits imposed by the Municipal Aid Prohibition Act and required citizens’ approval.

Huntingdon’s director general, Johanne Hebert, acknowledges that the town committed an error regarding the awarding of a tax credit to those restoring the O’Connor Building.

Hébert concurs that the resolution authorizing an agreement between Greenvest Enterprises Inc. and the town was passed by the municipal council on March 13, and that during the same meeting a notice of motion for bylaw 973-2024 was presented. The bylaw established a financial assistance program for the restoration of buildings of special or historic interest in the downtown sector. “The bylaw did not come into force until publication of the public notice to that effect on April 19,” she says. As such, the resolution to authorize the agreement should only have been passed once the bylaw was in force.

“There was no ill intent on our part,” says Hebert. “I think we were just so happy to have succeeded in saving the O’Connor Building,” she adds.

Huntingdon mayor André Brunette agrees, noting it was important to the council that the town’s historical landmarks be saved. The bylaw, regardless of the procedural error, allows the town to offer financial assistance to those willing to help revitalize the town and its older buildings.

Hebert confirms the DEPIM’s report will be deposited during the regular council meeting on December 2, at which time the town will move to repeal the March 13 resolution before passing a new resolution authorizing the agreement with Greenvest Enterprises Inc. in compliance with bylaw 973-2024. This will meet two of the three recommendations issued by the DEPIM as part of its report.

Investigation to be reopened

Hebert says that while she concurs with the DEPIM’s findings concerning the O’Connor Building, she believes the investigators interpretation of article 92.1 of the Municipal Powers Act concerning the town’s financial assistance to businesses is flawed. She disagrees with the report’s conclusions and says she wrote to the investigators with her concerns before the report was published.

Both Hebert and Brunette say they are disappointed that the results of the investigation were made public before discussions could take place to address the town’s concerns. The mayor says the council is now considering hiring a lawyer to respond to the municipal commission and the contents of its report.

Hebert confirms she has been in contact with both the Ministère des Affaires Municipales et de l’Habitation and the commission. She says the investigation will be reopened and that a meeting with the DEPIM’s investigators is already scheduled and will take place shortly.