NDP calls for stop to Brandt development in Wascana Park due to 'sweetheart deal'

The opposition NDP says the provincialgovernment should stop Brandt's development inWascanaPark because the process was flawed.

On Tuesday the NDP said that, according to real estate professionals it consulted with, Brandt would stand to makemore than $2 million a year leasing out space in the 77,000 square foot buildingon the site of the formerCNIBbuilding.

"You'd be looking at about $2.2 million a year for Brandt, which is a prettyincredibleprofit to be taking in each year and likely growing over 99 years," NDP leader Ryan Meili said Tuesday.

Meili called the development, "quite a substantial gift from the provincial government to one of their largest donors."

"It's an incredible sweetheart deal," he said.

The only confirmedtenants for the proposedbuilding are the CNIB and the MS Society. The CNIB was the original lease holder on the land and needed a replacement for its building constructed in the park in 1955.

In July 2016, the province signed a new 99-year lease withCNIBfor $1 peryear. After an RFP process, Brandt was selected as the developer for a replacement for the CNIB.

Meili referenced several controversial aspects of the development process, including the provincial government changing the laws around who governs development in the park and the removal of architects who had called Brandt's proposal inappropriateunder the park's mandate.

"We should be stopping the Brandt project entirely and starting over," Meili said.

The Minister of Central Services Ken Cheveldayoff disagreed, saying "all the processes have been followed."

"This has been a very vigorous process. This hasn't been a slam dunk for the CNIB, they've been working on this since 2011,"Cheveldayoffsaid.

"I think this is process that has followed all the rules."

Cheveldayoffsaid construction of the building comes at a cost to Brandt and that the building would be subject to municipal property taxes.

On Monday in question period,Premier Scott Moe said the government has processes for development and that, "they've been followed with respect to the replacement of the infrastructure for the Canadian National Institute for the Blind."

During the exchange, Meili referred to the government's process on the project as "corruption."

"When the architects on the committee don't agree with it, you fire them. That's the process. When you've got the rules of the park don't allow this to go forward, well let's change the rules. That's the process. When you've got the biggest corporate donor to the Sask. Party who wants to build it and have this opportunity, you make that happen for them. That's the process, Mr. Speaker," Meili said.

"That is not charity. That's not philanthropy. As far as I can see, that's corruption."

The government objected to the use of the term corruption. The speaker did not make Meili apologize or withdraw the statement.

Project history

Last month CBC's iTeamlearned the province is charging $1 a year for the 2.52 acres of Wascana Park land that is set to be the home of Brandt Development's new four-storey commercial office tower in Regina.

The park's master plan and legislation rules out commercial development, but the Brandt building concept has been approved, in part, because it was deemed philanthropic.

Brandt offered to donate 4,000 square feet of office space to CNIB provided Brandt was allowed to build a 77,000 square foot building on this site. In an email to CBC, CNIB said this was good for the organization because "funds previously dedicated to rent, property management and other associated expenses will be able to be reinvested towards delivering more services."

The rest of the space, in excess of 70,000 square feet, will be leased out by Brandt at market rates.

What's ahead

The PCC's architectural advisory committee is reviewing Brandt's detailed plans for the building. The two architects who previously made up the committee were removed after indicating Brandt's proposal was inappropriate for the park.

If the newcommittee members approve, the project will be able to proceed.

Two motions were recently introduced at Regina city council on the WascanaPark development. Onecalls for greater transparency while the other attempts to force full disclosure by means of an independent public inquiry with sweeping powers.

The province said it welcomes the provincial auditor looking into its processes in Wascana Park as part of the body's annual report.

"It's not aspecial audit. It's a normal course of business. This is what the auditor does," Cheveldayoff said.