Mayor absolved of wrongdoing in Studio 10 land deal

Mayor Provenzano was heavily involved in discussions leading to the city's recent purchase of the former Studio 10 lands, but acted with full knowledge of City Council and didn't violate the city's code of conduct for members of council and local boards.

So says Antoinette Blunt, the Sault's integrity commissioner.

"Mayor Provenzano did not personally arrange to purchase 89 Hudson Street on behalf of the city," Blunt says in a preliminary report delivered to the city on Tuesday.

"He did not improperly use city resources and he did not improperly influence staff. The purchase of 89 Hudson Street was made through a negotiated process that did not include an appraisal."

"Not undertaking an appraisal prior to the purchase of 89 Hudson Street is not a violation of the code of conduct for members of council and local boards," Blunt said.

Blunt received a request for investigation on Mayor Provenzano's conduct on Oct. 8.

She didn't identify the complainant.

Provenzano was accused of:

• improper use of city resources
• use of city property for personal use
• improper influence on staff
• improper use of influence

The requester said the mayor had "personally arranged to purchase on behalf of the city the property known as 89 Hudson St." and that the deal was closed "without benefit of an appraisal or staff consultation.”

“The assessed MPAC value of the property was $62,000. The purchase price agreed to by the mayor was $350,000,” the complaint stated.

“The city had not identified this property for future purchase and has no plans for the use of the property.”

Blunt talked to the complainant by telephone on Oct. 15.

No documents were submitted with the request for investigation, which was based on comments made by Provenzano at a City Council meeting on Sept. 14.

"Mayor Provenzano advised the integrity commissioner that the owner of 89 Hudson Street first brought the matter of his interest in selling the property...to the city’s attention prior to the mayor’s appointment approximately six years ago and subsequently over the years afterwards made several approaches to the city regarding their interest in this purchase," Blunt said.

"Mayor Provenzano advised...that information he discussed with the owner of 89 Hudson Street was always with the knowledge and mandate of council."

Provenzano told Blunt that he didn't negotiate a potential purchase price with the property owner.

Malcolm White, the city's chief adminstrative officer, said that the property owner first approached City Council around 2011 to determine whether the city was interested in the property.

The owner felt more comfortable dealing with Mayor Provenzano, White told Blunt, adding that council supported the mayor in taking this role.

Karen Fields, city solicitor, said that the most recent expression of interest was made on March 13, 2019 and that the property owner approached her directly .

Information was then circulated to all city departments and the matter was discussed by City Council at a closed meeting on May 6, 2019.

Mayor Provenzano became involved only toward the end of the recent negotiations with the owner, Fields told Blunt.

The tentative offer to settle on a purchase price was first discussed with Malcolm White, Fields said.

A draft purchase of sale was developed by the city's legal department and forwarded to the lawyer of the owner of 89 Hudson Street.

The deal was approved by City Council at an open meeting on Sept. 15, with only Ward 5 Coun. Matthew Scott opposed.

89 Hudson Street actually consisted of two properties with a total MPAC value of $126,000, Blunt said.

The integrity commissioner concluded there were no grounds for an inquiry into Mayor Provenzano's conduct.

The matter is on the agenda for Monday's meeting of City Council.

The meeting will be livestreamed on SooToday starting at 4:30 p.m.