Are developers always the bad guy in planning?

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Some of those who have dropped by and read my blog might get the idea that I am “anti-developer”, especially Peter Gilgan.  Well, hate to burst your bubble Peter but, I actually have more formal training than you do in urban planning.  You are an accountant and I have received formal training in Urban Planning.  So, I’m not against developers who, form an integral part of the development of any urban area.  No, I am against those who in their rush for PROFIT, will do anything to ensure they make the most out of what they have.

Now, I have nothing wrong with someone who wants to make a profit.  That’s what makes the world go around and stimulates growth and, growth stimulates jobs.  But, I am against those “robber barons” who will do anything to increase their profit  on the backs of the consumer and taxpayer.  Honest profit is what it is all about – not excessive profits gleaned from shortcuts, less than advertised workmanship and, getting the government to front all the costs.

 I just heard that some people give donations, etc to alleviate the pain in their soul for the nasties they have done over their life. 

Hmmm. 

A financial confession for those non-Catholics out there maybe.  Now, those who have read my blog have noted the less than ethical practices Mattamy has been involved in.  Short list: illegal (code) wiring; construction on land fertilized with human waste; illegal berms that could destroy the environment (Ottawa); flooding sub-divisions and basements in Bracebridge; and, last but not least, destroying a wetland in Cambridge.  Not the kind of actions one would expect from an environmentally concerned mega-builder.  More like the slum-lords I used to know in Toronto. 

But then, Peter has given out some money for good causes – $10 million to the Oakville Hospital (beat the Feds on this one), financial support to Wellspring ( while my complaint was before the Mayor) and also got his name on the local Oakville YMCA (not totally scandal free there).  And, a plethora of other donations.  I don’t know, but does this balance out the bad stuff he has done?  Paid his penance, so to speak. 

Just read an article I gleaned from a tweet: “Developers are not always the bad guys”, that was printed in the Vancouver Sun.  Although I am happy to agree with the title, I cannot agree with the argument the author puts forward.  He tries to mitigate the issue of bad planning and slightly less than honourable profit gain.  He states that since car manufacturers get subsidies, why not the development industry.  Well, sorry to say, a lot of us don’t like our tax dollars going to the private industry to bail out those getting big executive pay bonuses, etc.  Want us to help their pension plans, knowing that the employee never put a dime into the funds like a lot of us.  So, no, a lot of us don’t like this scenario so please don’t think we’d like developer subsidies.  And, don’t ask us about the bank rip-offs and mortgage schemes that lead us to our present economic situation in which the development industry had a piece of the action.  Selling homes to people who really had no realistic future in terms of owning homes way out of their pay scale.

As I said, PROFIT is something that must exist in our society and, used the right way, will not only reward those taking chances but also ensure future jobs.  But, don’t expect me the taxpayer to pay out while certain people rape their company with excessive payouts, etc.  The development industry in Milton make big bucks up there because the taxpayer of Oakville and Burlington was forced to put in the water pipe at their expense.  Mattamy made a fortune and then has the audacity to come and demand, yes demand, through busloads of workers who didn’t have a clue why they were there (by Mattamy’s own admission), that we reduce our development charges.  The billionaire leader, Peter Gilgan had to take a big cut in the sale of his Edgemere Estate ( $45 million firesaled to $35 million) but why should the taxpayer maintain his profit level through our taxes.

Interesting that the development charges were dropped a bit and Peter Gilgan donated $10million to the Oakville Hospital and later 3 companies, including Mattamy, donated some money to the infrastructure funding, along with a $5 million freeby (?).

So, I have to agree that NOT ALL DEVELOPERS ARE THE BAD GUYS.  Just that some are worse than others and also seem to get away with more and, get the taxpayer to ante up more.  Put in the loss by homeowners through poor quality workmanship and the bill gets higher.

You all know who you are – right Peter?

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Remembrance Day coming up shortly – even Mattamy honours our vets.

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As we approach November 11th, we are seeing a lot of programs on TV and other events honouring our veterans.  It is nice to see, especially when the youth of our nation are involved.

As you know, this blog is designed to inform the public about problems within the building industry, with Mattamy showcased as a builder not always up to snuff.

In fairness, I am including the following article to show that they sometimes do something right, although I’m not sure all veterans would favour this partnership, based on conversations I have had with some.  Considering how they screwed the people in Ottawa, at least it is something positive but I doubt it will heal the scars.

Half Moon Bay street to honour late veteran

Posted Nov 9, 2010 By Steph Willems

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EMC News – For nine years, the Candlelight Tribute for Veterans has been Ottawaís way of honouring and remembering the service and sacrifice of its armed forces members in the lead-up to Remembrance Day.
Held at Lansdowne Park on Nov. 1, the ceremony brought together more than 500 veterans and 100 youth, many of whom took part in a lengthy procession where candles held by veterans were placed at the base of an array of wreaths.
The event kicked off Veteranís Week in Ottawa, this year the city partnered with local developer Mattamy Homes to create a lasting tribute to a famous war veteran who served his country on board a famed Canadian warship. Andre Audet, a gunner on the Tribal-class destroyer HMCS Athabaskan, was among the lucky crewmembers who survived the ship’s sudden sinking following two torpedo strikes on April 29, 1944.
For the full story, please see the Nov. 11 edition of the EMC.

http://www.emcbarrhaven.ca/20101104/news/Half+Moon+Bay+street+to+honour+late+veteran
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Mattamy raises more money for charity!!!!

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Mattamy Homes is not shy about promoting themselves, both as a home builder and as a donator to the “cause”.  Now, I can certainly show proof that they aren’t that great in home building but, I must admit, Mattamy Homes does donate a lot of money to politicians, charities and other worthwhile causes.

I just read the following in relation to the ” Tour de Bleu“, a copycat of the Tour de France bike ride but, this one is to raise money for the William Osler Cardiovascular Health System at Brampton Civic Hospital.  The Tour is expected to raise $750,000, which will be added to the already raised $1.5 million.

One of the well publicized endeavours of Mattamy.

“Since 1978, Mattamy has aspired to create an enjoyable home buying experience for homeowners with over 50,000 homes in more than 100 communities in Canada and across the U.S.

 According to the company, the Tour de Bleu is an example of Mattamy’s desire to give back to the communities where they build homes.

” It is also part of Peter Gilgan’s personal drive to benefit community health care close to home. “

Well, I am not too sure about the “enjoyable ” part, especially for myself and others who have suffered the less than publicized “Mattamy Experience“.  Particularly those trusting souls in the Ottawa area.

Note that this is part of Gilgan’s “personal drive to benefit community health care close to home”.  Yes, his donation to Wellspring certainly helped the local community but, his using illegal (code) wiring in order to sell a house that put my children at risk I guess isn’t part of benefiting the community. 

Ex Mayor Ann Mulvale was more interested in accepting this donation than dealing with the illegal (code) wiring issue and, I don’t think either Mattamy or the inspector received any type of admonishment. The report on this was never seen.   But, Wellspring got the money.  So, I guess the way to keep unpopular building techniques out of the press is to ensure you keep donating the money and making yourself look good.  Kind of tactic the old mafia used as well and, of course, the drug lords in South America have perfected it.

Oh, and for the lawyers that just got a tingle in their missing gonads, I’m not accusing or even suggesting that  Mattamy or Gilgan are part of the Mafia or drug cartels.  Just interesting both use the same techniques – a social observation maybe worth looking into.

Well Peter, on behalf of those in Brampton, I thank you for organizing this event and raising a very impressive amount of money for the cause. 

 Too bad you didn’t put that effort into my house and the houses of those that don’t seem to get any benefit from their donation to your billionaire status. Fortunately my children are still alive to say thank you as well. 

 At least we can say that a small part of our money maybe helped those in need, including you.
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Are donations really from the heart or just good business?

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I read recently that Greenpark Homes, through Greenpark Chairman Carlo Baldassara, his wife and their family, donated $1 million to the future Markham Stouffville Hospital for the purposes of an ultrasound centre.

Also, Mr. Peter Gilgan, president & CEO of Mattamy Homes donated $400,000 from his “Peter Gilgan Charitable Foundation” to the “Peter Gilgan Family YMCA.

No, I am not here to compare the largesse of either builder nor discuss disturbing things I hear about the Oakville YMCA but, to wonder just what is behind the donations.  Charitable goodwill or something else?

When I searched the internet, I really didn’t find any complaints against GreenPark homes but found a number against Mattamy Homes.  I also discovered that both Greenpark and Mattamy claim to be “Canada’s largest homebuilder”. 

Greenpark claims over 52,000 built while Mattamy claims only 46,000 and includes the United States.   Doing the math based on their supplied figures, I guess we can tell who is the largest and who is telling a white lie.  The only difference is that Mattamy stated “new” home builder.  Does that mean Greenpark only builds old houses to claim the award??

Speaking of white lies, an internet search will also show Mattamy charged with illegal dumping causing environmental damage to the Ottawa area, selling homes prior to getting final approval, flooding basements in Bracebridge, illegal wiring that put children’s lives at risk, etc, etc, etc.

Now, who would you want to invest your money with?  A home builder who claims to be Canada’s largest with over 6,000 fewer builds, has to include the United States to get to that figure and, has been caught doing things not overly legal over the years? 

I should note that in addition to the $1 million donation to the Markham Stouffville Hospital, the Baldassara family has also donated $1 million to the Princess Margaret Hospital Foundation and $1 million to the Toronto General Hospital.  Interesting to note that Gilgan owned a house that sold for $35 million and was costing, according to one source, $1 million per year to operate.  Something about the “ME” generation seems to be coming out here.

Now, Mattamy has donated large sums as well, including one project spearheaded by former Oakville Mayor Ann Mulvale .  She accepted a donation to the Wellspring Cancer support centre in Oakville while involved in an investigation concerning Mattamy Homes.  I guess  the donation was more important than the fact that Mattamy was able to make a sale by putting illegal wiring into a house and putting children’s lives at risk .

Funny thing is that she didn’t even apologize for the fact that one of her building inspectors allowed it to happen.  So much for accountability in the Oakville bureaucracy.

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Taxpayer 1 – Developers +???

The Town of Oakville and Halton Region finally got a set of cojones and are standing up to Mattamy and the Developer power structure. The developers wanted a freeze on the development charges being raised to cover the costs of their developments. This of course would have put the burden on the local taxpayers. According to the Toronto Star article, local constituents voiced their displeasure and hopefully those councillors donated to by Mattamy et al will see the light.

Let’s face it. You buy a new home and part of the cost is the development fees. Yes, the developer/builder pays this but it is built into the house cost. It’s like joining a golf club. There is an initiation fee and then a yearly maintenance fee (developer charge and taxes).

Why should I pay for new homes in Milton? I paid my developer charges when I bought to help pay my way with my poor quality Mattamy house but I’m not paying for the pipelines to Milton. (Actually I did, but that is another story)

“Gary Gregoris of Mattamy Homes said his company’s sales have dropped from a high of 100 homes a month to 50, and they had to cut prices by about $50,000.”

So, we should get involved in “developer welfare”? Mattamy might be selling fewer homes either due to the economy or poor quality. For those who paid the full price, well sorry for the drop in builder’s price but a sale is a sale. Only the speculators will lose in the short term. But Mattamy isn’t suffering. Yes, they might drop the price but I bet the house doesn’t have the same interiors, etc and god only knows how else they will save money (that’s why a house inspector is even more imperative now).  Or, maybe the local politicians and charities can expect a cut to their donations.  For the charities, I feel bad as I do feel it is worthwhile to have some of MY MONEY that I paid Mattamy being funnelled into a worthwhile cause to get Mattamy positive media exposure (beats paid advertising).  But remember folks.  Those donations are YOUR MONEY and it is YOUR MONEY that pays for the shoddy workmanship.  Better workmanship might mean less money for the self serving donations.  For the flower children of Mattamy, I know it sounds cynical but, its reality.

I’m glad to see that someone finally stepped up to these guys. Now, if we could only get the province to promulgate some legislation that allows a homeowner the OPTION to put a house inspector into the purchase agreement and protect their interests. Too radical you say? Yes, the developers don’t want to see that kind of protection written into law. They’ve got Tarion working just right for them.

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Mattamy Homes Christmas – for some, not so great memories

Over the Christmas holidays I am sure that everyone’s lives were affected in some way by the economic downturn and the pressures brought on by a declining job market, a downturn in the housing market and, a feeling of helplessness in what is going to happen.

 

I notice in the press though, that Mattamy Homes is going ahead with projects, hiring new executives and seems to have a positive outlook on their future.  I only hope that, based on past performance, they also include the consumer. 

With the economic demands being made, it is a shame for a builder to make promises to close the sale and then leave the consumer hanging with poor quality.  Even during the good times, Mattamy did show a tendency towards not treating all customers correctly.  They either broke the law to make a sale or, put a lot of people through a lot of inconvenience.  Suffice to say, unless you were one of the lucky people to get the basket of flowers, the rest were left to suffer the consequences of poor/illegal construction.

 

In Calgary, they are promoting their new developments and in one statement, state: “Customers have input because at the end of the day, the only judge is the customer.”  Of course, whether or not Mattamy actually listens to the customer in the end is open to speculation.

 

As Mattamy and Peter Gilgan promote the Mattamy built homes, buy the fruit/flower baskets, donate the money to their charities and YMCA remember, all this good fortune they display was built on the backs of a lot of people who were left as litter on the side of the construction roadway.  My previous blogs document the carnage they left in people’s lives.

 

Remember to protect yourself and hire a house inspector.  If they refuse to allow you this, question why.  Who ultimately benefits by not allowing a house inspector? 

JD Powers – lovefest with Mattamy Homes

I read the following today, which is from a press statement by JD Power and Associates.

“When prospective buyers are in the market for a new home, they look to a
trusted resource to assist with their decision-making process, indicating that
builder referrals are a key source of information,” said Thibault. “Those
builders with a track record of high customer satisfaction performance will
have a distinct competitive advantage in a softening housing market. Buyers
tend to purchase from builders that present the least amount of perceived
risk. Testimonials from friends, relatives or colleagues can provide
prospective home buyers with confidence in their builders as they make one of
the most significant financial decisions of their lives.”

and,

“Builders are recognizing the importance of providing defect-free
products and are putting more emphasis on quality assurance mechanisms prior
to home delivery,” said Thibault. “This approach is a particularly efficient
way to run their businesses. Not only are home buyers satisfied at the point
of delivery, but eliminating defects also puts much less demand on builder
warranty service teams.”

 

Well, I certainly find a few things wrong this statement.  I don’t understand how a company can state that a builder is number one when in fact this builder has not only illegally (code) wired a home in order to put a sale through, has been found doing construction on land that was recently fertilized with bio-solids – contrary to provincial policy and, has just recently been charged with doing illegal landfill in the Ottawa region (and trying to circumvent the legal process by getting a back-dated work order).  To me, this brings the research methods utilized by JD Powers into some disrepute.  Maybe these other builders better start making more donations to charity, etc and get a higher press profile if they want to make sales.  No one has mentioned to me any illegal methods used by other builders.  I mean, every builder sometimes has quality control problems (I only wish I could tell you about Mattamy Homes quality control on one house – it would blow your mind) but here we have a builder that breaks the law in order to sell houses.  And the government lets them do it.  This recent charge is interesting.  Will Ottawa cave in by giving them a retro-active permit, thus negating the charges laid against Mattamy Homes – bring on the donations….

In that statement, “perceived risk”, I am wondering just how much risk people attach to the construction of their home, knowing that a builder might illegally wire it (base on prior performance), might have built the home on land contaminated with human waste (based on prior performance) and still continues to utilize illegal dumping practices (Ottawa) and expects to be home free with a politician (read donations) sponsored back-dated permit.  If you feel you can recommend a house with someone exhibiting these kinds of ethics, then I certainly don’t want you being my friend or recommending anything to me.

Every year JD Powers pushes Mattamy Homes. It is almost a love-fest and I think the other builders are starting to wonder.  I mean, if the other builders were that bad, they wouldn’t be selling houses.  Maybe their closing gifts aren’t as nice, they don’t donate enough money to charity and local politicians or, they just aren’t warm and fuzzy to the buyers.  Who knows?  But, I do wonder about it knowing some of the past illegal activities of Mattamy.  I guess money buys everything, including good press.  All I know is that I’d hire a house inspector and have it written into the contract that they can inspect during construction.  At least that way, you can ensure your getting the advertised house that JD Powers says you will get.  If you don’t, you’ve only got yourself to blame for what you end up with and little help from the government who gets the donations.