Local developers are suing the District of Squamish for $899,000 claiming a district manager with the power to sign off on projects was in a romantic relationship with a project opponent, thus creating a conflict of interest.
John Davey, Anthony Routley, Nancy Louise Routley and Yasmin Haufschild filed a statement of claim with Supreme Court of B.C. Dec. 18 alleging District of Squamish (DOS) community development director Mick Gottardi "was the prime mover behind every attempt to identify and/or act upon a possible objection to the project."
And he did so, it states, to help the project's neighbour and his "paramour," Maxine Milligan, who objected to aspects of the project.
"Whether the objection was specious or valid was of no concern to Mr. Gottardi, who was determined to implement his paramour's requirements," alleges the statement of claim. "DOS did not take appropriate steps to monitor or prevent Mr. Gottardi's conduct, which cased real damage and loss to the owners."
The allegations have not been proven, and no statement of defence has yet been filed.
In the fall of 2007, the district approved plans to build four units in two duplex townhomes on Government Road, having overlooked a height violation of five-and-a-half feet.
The buildings were already well underway when neighbours complained about the height. Gottardi "was responsible" for issuing a stop work order on Dec. 21, 2007, alleges the statement of claim, despite being part of the preconsultation process and being aware of the development plans.
"The stop work order was ostensibly prompted by complaining from the neighbours of the property regarding the height of the roof for which the BP [building permit] application had been approved, which complaints were formulated and made with the assistance of Mr. Gottardi," reads the statement of claim.
It alleges the extensive plans and drawings needed to secure a building permit "explicitly and clearly showed the project's height, measured from the finished or 'loaded' grade."
However, it alleges, Gottardi directed a municipal building inspector to interpret the measurement bylaw from the lowest grade. A development variance permit would now have to be issued to allow for the height, and this meant an appearance before council.
"Either the stop work order was invalid or negligently issued and/or the BP [building permit] was negligently issued," alleges the statement of claim.
It goes on to allege that developers met with then-Mayor Ian Sutherland, and told him "Gottardi's actions were the product of conflict of interest."
The process was further delayed by district error when a public hearing to discuss the issue in January 2008 was cancelled mid-way after an error was found in the notification flyers.
In the meantime, costs were accruing due to design changes, weather deterioration and loss of construction workers.
On Feb. 5, 2008, council heard the variance application and Milligan's opposition. The application was approved. During subsequent mediation between Milligan and the builders, facilitated by Sutherland and councillors, the mayor "undertook to pay the owners' consequential costs and remove Mr. Gottardi from the file," alleges the statement of claim.
But, it alleges, Gottardi continued to be involved.
When the variance permit was issued two weeks later, it contained three conditions, including the installation of eight 10-foot high coniferous trees for a privacy hedge.
Once the project recommenced, Milligan continued to object to aspects of the project, and said more trees would be needed, the statement of claim alleges.
It adds that on March 20, 2008, Gottardi "required that the owners comply with Ms. Milligan's demands and provide fill to the neighbour's backyards."
And when district engineering manager Doug French and planning manager Cameron Chalmers approved the owners' solution a 10-foot retaining wall Gottardi allegedly overrode French and caused Chalmers to "reverse himself."
French subsequently approved a plan to use a rock embankment for a retaining wall having become "uncomfortable with Mr. Gottardi's decisions and directions being the product of a conflict of interest arising from Mr. Gottardi's romantic relationship with Ms. Milligan, of which Mr. French was now aware," alleges the statement of claim.
Construction on the townhouses was eventually completed, and two of the plaintiffs now reside in the complex.
The builders are seeking $399,808.59 in damages resulting from out-of-pocket expenses accrued during the delays, and $500,000 in general damages resulting from the grief they suffered and the time put into resolving issues that could have been spent on other income-generating projects, states the plaintiff's lawyer Arnold Schwisberg.
Asked whether she was aware of the alleged conflict of interest at the time of the council debate, Coun. Corrine Lonsdale declined to provide comment. Gottardi also declined comment. . Mayor Greg Gardner, then a councillor, was unavailable this week.
Milligan's lawyer responded to a request for comment, saying Milligan wanted to review the statement of claim, which was subsequently provided to her. Milligan did not provide comment by deadline.
