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The ongoing battle regarding Development Charges in Halton Region has been an up and down battle with a lot of input from all sides.  With all the different input, it can get confusing on just what happened in the end.  For some, especially those who bought homes in Halton, it seems they got good news in regards to not having to pay the increase.

In my last blog, I was wondering  just who was going to pay the freight on the development charges.  Fortunately, I have received some clarification on just what is happening.  The following is from Oakville Mayor Rob Burton, who wants to make sure there is full understanding of the issue.  I invite you to visit the link and see the answers yourself.

I appreciate the Mayor taking the time to bring this clarification forward.

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My attention was drawn to a Toronto Star article concerning Mississauga Mayor Hazel McCallion and her son Peter, a local real estate entrepreneur.  This article goes over “the decision by Mississauga council to launch a judicial inquiry into a controversial $14.4 million land deal he initiated – which will also probe conflict-of-interest allegations involving the mayor.”

We have seen in Oakville where decisions were being made concerning allegations of illegal wiring putting children’s lives at risk and former Mayor Ann Mulvale, whose mentor is Hazel McCalliion, was in negotiations for a Mattamy donation.  Was that a conflict of interest?  I will let you decide.

But the bigger picture to us all, is something brought forward to me by another reader.  Without the facts, I can’t make a specific allegation but, we should be monitoring our councillors in preparation to make our voting decisions come November 2010.

This just isn’t an Oakville problem (as seen my an earlier blog that gave donation statistics for Toronto politicians and the Vaughan problem) but, we should be aware that politicians will be making decisions now to ensure their power base (money) is consolidated for the next election.

Look at the Edgemere decision.  Even though the developer was legally obligated to hand over the shorefront strip, he argued and got some density concessions.  Why even bother when he had to dedicate the land?

Another interesting area was up in Milton – or Mattamy-Ville,  as other reader has aptly named it.  Big argument over Development Charges and Mattamy led the Complaint Brigade – with a plethora of Voluntolds in support.  After new homeowners were threatened with an almost $8000 increase due to the levy, it seems now that they don’t have to pay. 

But who will?  I stand to be corrected on this but it seems that Halton will get a loan from the developers to build the necessary infrastructure and then will give future concessions of some sort. 

WHO WILL PAY THIS LOAN BACK???   THE TAXPAYER? 

We are already paying for the water pipeline that allowed Peter Gilgan et al to make their fortunes developing the Milton area.  And who voted to make these changes and why?  At first Halton was strong on the new development paying for itself, even saying so in an online report- since removed.  It will be interesting to see who gets the developer’s support the next election.

Appears that, as someone pointed out to me, Mattamy rules the roost in Halton.  I hope the Milton taxpayer is happy with the free bus rides they might get for Christmas, courtesy of Mattamy.  Nothing like buying someone off with cheap trinkets. 

BLOG  EDIT:  SEE NOVEMBER 30TH  FOR CLARIFICATION

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The Toronto Maple Leafs are in the news frequently and not for what they have accomplished.  The richest team in the league and scraping bottom right now.  Those of us who have been around awhile remember the glory days when it was a winning team.  Now – making the money but not producing the product their reputation was built on.

Mattamy Homes had a very good reputation – something that people are still making a decision to buy a home on.  In the early years, they seemed to produce a very good product and people bought knowing they would be well treated. 

Seems those glory days aren’t what they used to be.  Flooding basements in Bracebridge, selling homes without being given permission to develop in Ottawa, illegal landfill in Ottawa that had the potential to ruin the environment, poor construction in Florida, starting pre-mature construction on land in Milton that had been fertilized with human waste and, illegal wiring – the list is becoming endless it seems.

Like the Leafs who are striving for the elusive Stanley Cup, Mattamy has dropped to second place in the GTA with the JD Power Customer Satisfaction award and in Ottawa – just like the Leafs, scraping bottom in customer satisfaction.

I see in the newspapers they are starting to hint about a change in leadership for the Leafs.  Do we need this at Mattamy to curtail the dropping of quality and customer satisfaction?  Maybe, instead of trying to enhance a reputation in the press for Entrepreneur of the Year,  Mattamy management should be focusing on why people are being shafted with all these problems.  If you want to donate, go ahead but make sure it isn’t to mayors who are supposed to be investigating why children’s lives were put at risk by illegal wiring that allowed sales to close.

If people keep buying Mattamy based on the old reputation, is Mattamy thinking – why should they change.  Like the Leafs - they are still raking in the money from loyal fans who are not getting the product they are expecting.

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Awhile back I put out a blog concerning Mattamy owner, Peter Gilgan’s Edgemere Estate, a 5.7 hectare site on Lakeshore Road in Oakville.  It was listed for $45 million but had a fire sale at $35 million.  Maybe that is why the people of Milton are being asked to fork over almost $8000 in Development Charges for homes they bought from Mattamy.

Anyways, Edgemere is the “largest, original undivided estate in Oakville, with 1000 feet of shoreline”, according to the Toronto Star.

It was bought by developer Marc Hewitt, who wants to build 30 estate-type condos in 10 buildings, while still keeping some of the heritage buildings on the lot. (gardener’s cottage, stable, tea house  and boathouse)  For this I thank him - the preserving of the heritage buildings that is.

Mr. Hewitt of course wanted the waterfront to increase the value of these condos, which will start at a modest $3 million in loose change and range in size from 2000 to 5,400 square feet.  (Gilgan’s 15 year old palace was 32,000 sq.ft. – I guess not paying full share of the development charges in the past allows you to build bigger)

The paper reports that Mr. Hewitt will “dedicate a 15 metre wide linear strip of waterfront park and connecting trails to the town“. 

DEDICATE!!!!!

Sorry boys, but he had to give it up to the Town of Oakville as there is a by-law which states that if an estate is broken up for increased density, the waterfront must be turned over to the town.  Not maybe; not a gift; not dedicate but,  MUST TURN IT OVER. 

Mr. Hewitt, in the kind of Peter Gilgan “I am donating” mode, did manage to squeeze some more density out of the land instead of going to the OMB and arguing.

Shame to see this hunk of land get carved up for some rich condos but, at least the Town saved the waterfront from developers looking to make a buck and skirt the law. 

I guess the ghost of past shady practices still lives on the old Mattamy estate. (do we hear – illegal wiring?)

I’m glad that a former mayor of Oakville had the balls to ensure this by-law was passed and that the people of Oakville will not see their waterfront destroyed by developers, like in Toronto.

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“Customer service makes a difference“, according to Ian Johnson, who is Director of Customer Care at Monarch’s high-rise division.  He did a short article in the Homes-extra.ca section of the Toronto Sun (November 13-15). 

Well, I have to agree with him.  A short internet search of Mattamy and Monarch turned up no complaints about Monarch but a few for Mattamy.  Shame Monarch wasn’t getting all the awards over the years but I guess J.D.Power needs you to have complaints on the internet to get an award I guess.

Monarch was founded over 90 years ago, so they have had quite a bit of time to perfect their customer relations in comparison to the newcomer, Mattamy Homes.

He notes that: “it is a long relationship from the start of a purchase to when homeowners are handed the keys………. and a good experience in that process will lead to referrals for a builder.  This is critical to building their business and sustaining the builder’s brand in a very competitive market”. 

With declining awards in Customer Satisfaction, Mattamy seems to have forgotten this.  Especially when you look at how they are treating people in the Milton area, Ottawa area and the flooding estates of Bracebridge.  In my case, putting children’s lives at risk wasn’t even noticeable to them.

You may want to go to this Monarch sponsored link to read the whole article by Ian Johnson as it does spell out how to work with consumers and to respect their rights. 

Mattamy – I would suggest you make it mandatory reading for your people.

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Jenny Kotulak, a broker in the Oakville area, left a very good comment with good advice in my “About and Contact Section”  Hers is #10.

I think her comment on “buyer we aware” is very appropriate, for buying a new house or old.

The people in Ottawa, Mattamy Fairwinds, found out they were buying houses and Mattamy had no permit to build.  Those in Halton bought houses and are now being told by Mattamy they have to pay an extra $7800+ levy. 

Not nice surprises to have while you await your house.  Some things you can’t know but to keep on top of things, follow the blogs in your area to ensure you are kept aware of things happening that might affect your financial and physical welfare.  Listen to the experts and follow their advice and ensure you hire people to not only give you good advice but are independent enough to have your interest as their prime concern.

For those thinking of buying homes, look at the company track record.  Not the advertising nor the self-serving awards from places like J.D. Power (who finally woke up to Mattamy’s declining customer satisfaction record) or BILD.  Go to the blogs and see who is unhappy and why.  Their experiences will give you information on where to plug the holes in the purchase offers and who to hire to help you.

Some blogs have been shut down due to builder pressure and others keep going.  Remember – if they aren’t telling the truth, they would be open to a lawsuit.  The truth hurts but, when you know it, you can prepare yourself and be aware of how to look after yourself.  Your builder is looking after his profit and those large builders can lose a few customers without worrying.  Can you afford to lose your investment or have to pay big bucks to pay for their mistakes?

Remember one point – at some point you will probably want to sell your house.  A buyer can, without any problem, hire a house inspector to look after their interest. 

Who looked after your interest on the new house?  A municipal inspector who overlooked things, a mayor who wanted donation money over children’s safety, a sub-contractor giving you shoddy service because the builder was cutting his contract money? 

Hire a house inspector so that you know your future home will be built and will last a reasonable time before needing NORMAL maintenance.  Otherwise, you will not only pay to have your house built but you will have to pay for unneccessary repairs early and,  also pay to have your house repaired for someone buying it who does hire a house inspector to look after their interests.

Thanks Jenny for the very good advice.

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In the November 12th Toronto Star there was a short blurb on a house inspector in British Columbia being ordered by the B.C. Supreme Court to pay out nearly $200,000 to a North Vancouver couple.  Appears he was “woefully inadequate” in his inspection and after buying, the couple had to pay out about $200,000 in repairs when told it would be about $20,000.

I guess he didn’t go deep enough in his inspection.  When choosing an inspector check out the associations for someone who is professional and properly trained as well as check out the forums and see who gets recommended.  Always check references as well.

But don’t let this stop you from hiring a house inspector.  If you’ve read my blog you will see builders are out there not fulfilling their side of the contracts and it seems you aren’t overly protected.    All the advertising in the world that Mattamy has done really doesn’t show the whole picture. 

 Illegal wiring, homes sold without building permits issued, flooding basements and a plethora of other faults.  Enough problems that J.D. Powers dropped them to 2nd in the GTA and around last in the Ottawa area. 

So, do your homework and hire a qualified house inspector with the appropriate liability insurance.  And, make sure they are given the appropriate time to do a proper inspection.  A hurried inspection will only help the shoddy builder. 

I know my PDI was so rushed on moving day with Mattamy I really didn’t get to do a proper one.  Maybe having a house inspector with me would have ensured I wasn’t railroaded.

AND IN OTHER BLOGS:

These blogs show the frustration Mattamy owners are feeling about delays, etc.

In this one, you will note that the city has concluded that it can safely go ahead with about 34% of the development in terms of flooding.  That doesn’t exactly make me feel comfortable, especially since they note the older developments need more plumbing to take away water.

ADVENTURES IN BUYING A NEW HOUSE:

http://400brigatine.blogspot.com/2009/10/ottawa-citizen-kanata-west-safe-from.html

BUILDING HOMES:

Appears this couple was rushed….  Don’t let that happen, it is YOUR inspection.

http://www.buildinghomes.ca/community/forums/showthread.php?p=115873

BUILDING HOMES:

Confusion on closing and paying to Mattamy has caused some new owners to feel embarrassed and are clamming up with friends. Not the kind of joy one would expect from a new homeowner.  But, Mattamy still wants more money and Tarion, may not cover what you give.

http://www.buildinghomes.ca/community/forums/showthread.php?t=8880&page=23

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I read a very good column in the Toronto Sun titled, “Safety on-site” written by Nicole McLaws.  It discussed that drive you have to visit the site of your home being built, balanced by the safety concerns of the builder.  Both are very important and relevant.

I have to side with the builders in telling you a building site is not for the faint of heart, nor a visiting playground for children.  But, you as an owner should be able to visit and monitor the construction and ensure you are getting your value.

So, point one is leave the kids at home.  How anyone can inspect their property while looking after a couple of kids is beyond me and if you’re not keeping an eye on them, I hope you can accept the consequences of cutting their young lives short.

As McLaws pointed out, wear the right clothing for a construction site – I love heels on a woman but not when they are covered in mud, etc.

This will allow you to concentrate not only on your own personal safety but really have a good look at your house.

This is one reason I recommend a house inspector.  They are professional, very safety conscious and are being paid to find all the faults before you sign off. 

Now, builders like Mattamy let you do a quick frame-walk and then a quick PDI where you might be able to see some of the stuff and ask them questions.  Yes, ask the guy who is making the mistake a question.  Unless you are in the trades, how do you argue a point with him.  Like a mechanic arguing a point of law with a lawyer.  Just doesn’t cut it.

Now, a professional house inspector representing your interests can in fact argue your point – either verbally or in writing.  As long as they have the time to do a proper inspection, you will get your value from them.

I suggest you write into your purchase agreement that one be allowed to inspect the home.  If the builder says no, ask why.  And don’t fall for the bullshit line – safety.  A house inspector is better qualified to inspect your home in terms of safety than you are.  If they say no, you can still sign the purchase agreement but, you might not be happy.  I know I wasn’t with Mattamy and a lot more are in the same boat as I was.

So, make an investment that not only looks after your house quality but also your own safety.

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Recently, a happy Albertan Mattamy homeowner wondered why all the dissatisfied Mattamy homeowners don’t sue Mattamy.  After reading a recent column by Bob Aaron of the Toronto Star, you can see why.

Appears that as a homeowner, you chances aren’t that great and that it all depends on the judge.  According to a report by Harry Herskowitz, a lawyer with DelZotto Zorzi LLP and, a “well known and respected lawyer for builders and developers and chair of Tarion” , for one not to close on a house purchase, “it must be a fundamental breach of contract which substantially deprives the buyer of the whole benefit of the transaction.”

Note his position with Tarion and a lawyer for builders and developers.  Need I say more.

According to this article, at one closing, there was only temporary power, heating was incomplete, kitchen unfinished (no island) and other items not installed and, no outside steps.  The garage floor was not poured and construction debris was strewn about the house.  A municipal building inspector declared it unsuitable for occupancy.   The buyers refused to close but when the inspector came back at 4:00pm (hmm, working overtime was he) the water was now connected but the furnace wasn’t fully installed (July) and it was deemed fit for occupancy.  I would think some of the items would make the house unsafe.  But then, Mattamy puts in illegal wiring that could kill children and they feel it is no problem. 

The builder sued for damages and won.  Now, in my case I had no power at all but, I guess the judge probably would say I could light candles or something.

So, as you can see, you really need to have a lawyer up to speed on real estate law before telling the builder his house isn’t up to snuff.  And a good house inspector to guide you through an inspection and add documented support if you are going to proceed against a builder.

So, to our friend in Alberta, it is harder than you think to argue for what is rightfully yours but, the system protects those who don’t want to give you quality for the money you spent.  Even the Ontario government won’t put into legislation that a homeowner has the right to put a house inspector into the purchase agreement. 

Who is protecting who?

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On my October 14th blog, titled, “Toronto Star – good article on development charges” Dan McIntyre has left a very enlightening comment concerning the City of Toronto.  He has broken down the political contributions to local politicians into two categories:  Landlords and, Developers/Other business.

It is interesting to see who is on the list with the most donations from these two groups and, who is on the small contribution side.  You might find some of the names surprising.

I only wish we had this for Halton.  Would be an interesting breakdown and interesting to see how the vote goes this November 12th and subsequent dates for the development charges between Halton Council, Mattamy Homes and some other interests such as BILD..

I appreciate the time he took to build this list and for sharing it with us.  Lots of money out there and how it affects the decision-making is up to speculation.

- – - – - – - – -

City politicians who took campaign contributions from landlords, developers and other businesses in 2006.

THOSE WHO TAKE LITTLE MONEY

Ward Candidate Landlords/Dev Other Businesses
Mayor David Miller 0.0% 0.0%
1 Suzan Hall 7.8 20.6
4 Gloria Lindsay Luby 12.3 10.5
8 Anthony Perruzza 10.3 5.8
9 Maria Augimeri 13.5 11.4
14 Gord Perks 0.6 0.0
15 Howard Moscoe 6.5 13.9
18 Adam Giambrone 7.8 1.6
19 Joe Pantalone 0.0 0.0
20 Adam Vaughan 0.0 0.0
21 Joe Mihevc 0.0 0.0
22 Michael Walker 0.0 0.0
23 John Filion 6.5 7.0
25 Cliff Jenkins 0.0 0.0
27 Kyle Rae 0.0 0.0
28 Pam McConnell 0.0 0.0
30 Paula Fletcher 0.9 0.0
31 Janet Davis 0.0 0.5
32 Sandra Bussin 0.0 11.1
33 Shelly Carroll 11.1 12.0
35 Adrian Heaps 0.6 2.8
38 Glenn De Baeremaeker 10.4 8.3
40 Norm Kelly 6.2 14.7
41 Chin Lee 1.6 9.8
42 Raymond Cho 0.0 3.2
44 Ron Moeser 0.0 1.4

THOSE WHO TAKE LOTS OF MONEY

2 Rob Ford 32.5 24.2
3 Doug Holiday 24.0 28.3
5 Peter Milczyn 41.7 26.4
6 Mark Grimes 22.6 18.8
7 Giorgio Mammoliti 41.4 26.0
10 Michael Feldman 29.6 16.1
11 Frances Nunziata 39.1 32.9
12 Frank Di Giorgio 39.5 27.5
13 Bill Saundercook 17.5 31.4
16 Karen Stintz 47.0 2.0
17 Cesar Palacio 37.4 2.1
24 David Shiner 25.5 21.3
26 John Parker 25.4 17.4
29 Case Ootes 28.1 30.2
34 Denzil Minnan-Wong 32.5 30.0
36 Brian Ashton 30.4 15.6
37 Michael Thompson 20.0 28.9
39 Mike Del Grande 37.5 10.7
43 Paul Ainslie 27.3 24.0

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