April 15, 2013
Good morning Mayor and Councillors,
The information contained in this deputation is Without Prejudice and it has been researched from various Internet websites using google searches. It is provided in good faith, and every reasonable effort has been made to ensure that it is accurate. I provide no warranty as to the accuracy of the information. It is for information purposes only. In no event shall I be liable for any damages arising, directly or indirectly, from the use of the information contained in this deputation, including damages arising from inaccuracies, omissions, or errors. Any person relying on any of the information contained in this deputation or making any use of the information contained herein, shall do so at their own risk.
I am here this morning to once again convey my concerns regarding the obvious lack of due diligence on the proposed arena project. How do I know about the lack of due diligence? Because if ANY due diligence was in fact done, this project would have been killed 11 months ago. Since we are still here, it is quite obvious that something has gone very wrong with the process.
In the COUNCIL MINUTES, April 26, 2012, 7:00 p.m., (Special Meeting) at
Council Chamber, Meeting No. 8
Item #4. REPORT NO. 25 – SPECIAL GENERAL COMMITTEE (APRIL 20, 2012)
Moved by Deputy Mayor Jack Heath
Seconded by Regional Councillor Gord Landon
That Report No. 25 – Special General Committee comprised of 1 item be received and adopted.
(1) MARKHAM SPORTS, ENTERTAINMENT
AND CULTURAL CENTRE (6.0)
AND CULTURAL CENTRE (6.0)
1) That the report entitled “Proposed Sports, Entertainment, and Cultural Centre in Markham Centre” dated April 19, 2012 be received; and,
2) That Council approve the partnership and financial frameworks described in this report, to construct a Sports, Entertainment and Cultural Centre in Markham Centre, with approximately 20,000 seats, subject to due diligence results satisfactory to the Chief Administrative Officer, Council approval of final terms, and execution of final agreements satisfactory to the Town Solicitor and Chief Administrative Officer; and,
3) That Council endorse the development contribution amounts as outlined in this report; and,
4) That the Chief Administrative Officer be authorized and directed to continue with due diligence investigation and to finalize negotiations with GTA Centre, LP and its limited partner(s) and bring a report forward to Council on the final terms; and,
5) That staff review and report to Council on any additional offers to contribute to the capital cost of the Town of Markham Sports, Entertainment and Cultural Centre that are brought to staff's attention; and further,
6) That staff be authorized and directed to do all things necessary to give effect to this resolution.
(See Motion 1)
CARRIED BY A RECORDED VOTE (11:2)
(See following recorded vote)
YEAS: Mayor Frank Scarpitti, Deputy Mayor Jack Heath, Regional Councillor Gord Landon, Councillor Valerie Burke, Councillor Howard Shore, Councillor Don Hamilton, Councillor Carolina Moretti, Councillor Colin Campbell, Councillor Alan Ho, Councillor Logan Kanapathi, Councillor Alex Chiu. (11)
NAYS: Regional Councillor Jim Jones, Regional Councillor Joe Li. (2)
Almost one year ago -- April 2012, I presented a deputation regarding my concerns around the financial framework of the proposed arena. I outlined a little bit of due diligence l had done on my own -- with just a few google searches. My searches were to learn more information about our prospective partner/promoter Mr. Graeme Roustan.
This time, I have made hard copies of just a tiny piece of Mr. Roustan’s history and will ask that the Clerk please have the information sheets copied and distributed to the full council, commissioners, and CAO and attach them to the minutes of this meeting.
You will see that Justia.com, which I referenced one year ago, shows the Plaintiff as Touristic Enterprises Company (Kuwait City, Kuwait) v Defendant Roustan United LLC. In this case, the court awarded the Plaintiff a judgement in the amount amount of $482,419.14 and references “fraud in the inducement”. I cannot comment on whether or not Mr. Roustan is associated with this defendant.
In The Tribune Democrat, Johnstown, PA, February 15, 2010 Ms. Reabuck wrote an article titled, “Hockey team owners sue former managers”. The Johnstown Chiefs corporate owner Neil Smith alleged defendants Roustan United Inc, and related companies, Arena United, Roustan Planet Ice, and Roustan Ice along with company executives, W. Graeme Roustan and Scott Branovan for allegedly failing to pay operating bills totaling nearly $300,000.
It goes on to say, “Roustan breached the terms of the contract and failed to carry out its fiduciary duty...” and “Branovan and W. Graeme Roustan allegedly are liable because the corporation were used to further their personal interests...”.
Apparently, the defendants have refused to pay. The article also states that bills from 2008 and 2009 in amounts ranging from $20 owed to Ear Nose and Throat Associates, up to $70,948 owed to Reebok-CCM Hockey US Inc remain unpaid.
A Toronto Star article, written by Tony Van Alphen, October 7, 2012 quotes me as saying, “ When government is using taxpayers’ money, it is incumbent upon them (council) to perform the utmost due diligence...”It goes on to say, Roustan brushes aside the nay-sayers, stressing that everyone wins in the deal. Markham Mayor Frank Scarpitti agrees, adding the city has conducted backgrounds checks on Roustan and Bratty and concluded “we have a strong project team”.
Through the Chair, my question to the CAO and CEO is have you done any due diligence on Mr. Roustan and IF you have done ANY due diligence on Mr. Roustan, why are you still wasting our tax dollars continuing this project?
Why are some of you waiting for an MOU, when it is just a piece of paper that you must agree is unenforceable -- just like the others that I have referenced here today?
As a taxpayer, I implore one of you Councilors to please put forth a motion to stop this arena process from continuing.