The political party of the mayor of the Town of Mount Royal was housed at an advantageous price in the offices of a major real estate developer during the last election campaign, learned our Bureau of investigation.
Three hundred dollars is the sum paid in the fall of 2021 by the Peter Malouf Team (EPM) to rent its electoral premises, owned by the company SAJO.
This contract between the promoter and the party in power outrages certain citizens, especially since SAJO is currently trying to obtain the green light from the City to build a complex of around fifty condominiums, despite strong opposition (see other text ).
Alerted by one of them, Elections Quebec opened an investigation last week to determine if all the rules regarding election financing were respected.
Ten weeks rather than four
The rental lease ran from October 10 to November 7, 2021, according to the lease sent to us by the promoter.
However, documents obtained by our Bureau of Inquiry show that the electoral premises would have been used longer by the EPM than what was declared to Élections Québec.
The party itself invited its militants to go there at the end of August.
The premises would therefore have been lent for at least 10 weeks, rather than the four declared, giving the equivalent of a monthly rental price per square foot below the $0.70 mark.
By way of comparison, the average price currently paid for the monthly rental of offices in the central ring of Montreal, which includes the Town of Mount Royal, is double, or $1.35 per square foot, according to the latest report from CBRE real estate agency.
The electoral law prohibits candidates and parties from benefiting from services at a lower than market price during the electoral campaign.
If proven, such a practice could be considered a fraudulent electoral maneuver and could lead to the loss of electoral rights (see other text).
Misrepresentations?
Mayor Peter Malouf is also the direct tenant of SAJO. The professional office of his holding company has been housed for years at the same address as his party’s electoral office.
Mayor Malouf refused to answer our questions on the subject. He also refused to direct us to an EPM spokesperson, claiming that his party was “inactive”.
SAJO representative Jonathan Goldbloom maintains that the rental lasted less than a month. “The price was reasonable given the short-term nature of the lease, and it was a vacant, unrenovated and unfurnished space,” he said by email.
– With the collaboration of Marie-Christine Trottier
ONLY A MONTH, REALLY?
Our Bureau of Investigation has obtained documents which show that Mayor Malouf’s party would have benefited from its electoral premises for longer than was declared to Élections Québec (October 10 to November 7). For example, an email sent by the party’s campaign organizer announces the opening of the electoral office on August 29. An advertisement from the EPM invites citizens to go to this same room, in case of rain during an activity, on September 25th.
What the law says
- The Law on Elections and Referendums in Municipalities stipulates that “in the event that a good or a service is provided to a party or a candidate, for political purposes, for a price lower than its value, the difference constitutes a contribution “.
- However, only an elector of the municipality is authorized to make a contribution. A company cannot therefore offer a service at a discount.
- This offense may constitute electoral fraud, which would result in the loss of electoral rights for a period of five years. A fine of up to $50,000 may also be imposed.
- Transmitting “a report, statement, invoice, receipt or other supporting document that is incomplete or that contains a statement or false information” also constitutes electoral fraud.
Source: Elections Quebec
A controversial project
Photo from 1000lucernevmr.ca
The promoter SAJO wishes to build a complex of about fifty condominiums at 1000 Lucerne, a site left vacant since the closure of the synagogue.
The developer SAJO, who has rented electoral premises to the mayor’s party, wants elected officials to grant him a zoning change in order to be able to build a controversial condominium project.
During the last city council, on January 24, the mayor expressed his support for the site of the former synagogue at 1000 Lucerne being developed.
“This project is a huge frustration for the developer, and I can understand that. Nobody came up with another alternative. There were only criticisms, ”said Mayor Malouf, in response to a citizen.
“I’ll be honest: I think a residential development is a good idea and a good use of this property. Right now it’s a real horror in our community. It has become dangerous, and it bothers me from a security point of view,” the mayor continued.
Zoning change
SAJO wants to build about fifty condominiums in a four-storey complex (see image opposite) on the site of a former synagogue.
But an information session, two petitions and several council meetings later, the green light has not yet been given by the City given the opposition of several citizens, who would like the land to be used instead for the construction of a school or a park.
The project was first presented under the previous administration of former mayor Philippe Roy.
The developer’s representative explained to us by email that SAJO acquired the land in 2019 “after receiving a strong indication from the City that (sic) the zoning of the site would be changed, so that 1000 Lucerne Road could be used for residential purposes”.
A request to modify the zoning of the site, currently zoned institutional, would also have been filed in 2021, alleges the promoter. The urban plan must also be modified.
Citizens of Mount Royal cry out for conflict of interest
Screenshot, Town of Mount Royal
Mayor Peter Malouf was taken to task by a citizen regarding his links with the company SAJO during the municipal council of July 19, 2022.
Disgruntled citizens have been denouncing for months the close ties between the mayor of Mount Royal and the promoter SAJO.
In July, a citizen, presenting himself as a former judge of the Superior Court, notably reminded a council meeting that an elected official must declare any conflict of interest and then refrain from participating in discussions on this subject.
“Considering, Mr. Mayor, that you have contractual ties with SAJO, (….) did you denounce to the council this appearance of conflict of interest, namely that you had and still have today relations contracts with SAJO? declared Luc Lefebvre, in reference to the professional office that the mayor currently has in a building belonging to the promoter.
A citizen squarely filed a complaint with Elections Quebec, which considered the case serious enough to open an investigation.
“I note an irregularity in the financial contribution to the electoral campaign linking SAJO to Peter Malouf (…) it seems obvious that this rental price is a preferential price and does not correspond to the market price”, can we read in the letter of which we obtained a copy.
An open letter was also written in the local newspaper to raise the “contractual ties uniting Mayor Malouf to Sajo” in early January.
They defend themselves
In the next edition of Mount Royal Post Office, the promoter SAJO defended itself by asserting that the mayor’s company lease was the only contractual link between the two. He did not speak of the electoral premises rented to the mayor’s party.
“Peter Malouf was a tenant at 1320 Graham Boulevard when we acquired this building more than 20 years ago. This is the only contractual relationship between him and our company. It is irresponsible and provocative to suggest that renting an office to him is a reprehensible practice,” wrote Mario Guerrera, leader of SAJO.
The mayor also denied having a conflict of interest during the town council meeting last July.
“I have no specific contract other than a lease. […] I have no personal interest (…) so I have nothing to denounce, absolutely nothing. »
He must not vote
Mayor Peter Malouf will not have to vote if the City comes to a zoning change in this file, or any other modification of its urban plan, to avoid the conflict of interest, believes the professor from the University of Quebec in Montreal (UQAM) and municipal management specialist Danielle Pilette.
“He will have to be very careful (…) and not even discuss the file, since he already has a contractual relationship (a lease) with the developer in question,” she said.
According to her, Mayor Malouf “lacks sensitivity” in this matter, “compared to the critical spirit of his citizens”. “It’s a lack of transparency. It gives rise to perceptions. In the past, we didn’t care about municipal perceptions. Now you have to wash white. »