April 7, 2016 · 0 Comments
Orangeville council’s meeting Monday started two hours earlier than normal, behind closed doors, but the Citizen later learned it did discuss three separate topics: potential litigation with Hogeys Sports Bar Limited; legal advice on use of a corporate credit card, and legal advice on use/conduct of town business on social media.
An interesting aspect of these three issues is the fact that Mayor Jeremy Williams was not present in approximately 75 per cent of the meeting.
Why would the Mayor not be a part of these private meetings? Candidly, I do not have the information to connect all pieces of this puzzle. I privately met with many of the protagonists with knowledge of this story. Unfortunately, due to the potential litigation none would allow their names to be associated with this article. For those of you wondering, I did reach out to the Mayor for comment. In fairness, he was unavailable during the day and did not return my emails during the evening.
Separately these discussion topics mean nothing and candidly on the surface they are not necessarily interesting. However, upon further investigation, the Mayor’s involvement in each of these is being questioned by Council and Town staff.
Hogey’s Sports Bar has been in operation at the Alder Street recreation centre for a few years now. The original application for a business licence was a controversial item. Many within the town did not want a drinking establishment to be operating in a recreation centre. After much consternation the facility was opened. The bar had bands play and also offered video golf where avid golfers could bring their clubs and swing freely into a screen. The business is owned by Gerry Hogenhout.
Mr. Hogenhout’s deal with the town was that he would pay 12.5% of his gross revenue to the town. Those familiar with the contract said that taxes would be paid by the Town of Orangeville. As time progressed and the business’s success grew, the Municipal Property Assessment Corporation (MPAC) assessed Hogeys Sports Bar, setting the level of property taxes due. Mr. Hogenout did not pay these taxes on grounds the contract stated these would be paid by the town.
This is where a disconnect exists in the story. Why? The town terminated Mr. Hogenout’s contract and shuttered his business. Why? The disputed tax money was well over $100,000.
This brings our story back to the beginning and the burning question of why would the Mayor not be part of a closed-door meeting of council? Why was he absent for the majority of the meeting? My understanding is that the Mayor would not negotiate with Mr. Hogenout unless he was instructed to do so by Council. At the same time, others have stated that the Mayor was trying to help with the negotiations. It is well know that the relationship between Mr. Hogenout and Mayor Williams is a friendly one. (Mayor Williams celebrated his election win at Hogey’s.)
What is being discussed by council and town staff is twofold: Should the town pursue legal action against Mr. Hogenout, and did the Mayor act improperly, given his position with the Town and relationship with Mr. Hogenout? Town staff elected not to have the Mayor present during these discussions.
What happens next? We wait.
Mr. Hogenout will need to decide whether he would like to pursue litigation, while the town will need to decide if there was any improper conduct by the Mayor. Statements to the media are expected in a few days. (At this time he declines to comment.) Sadly, we now have an empty business at the Alder Street arena, one that could be generating revenue and services for the town and those that frequent the rec centre.
Lastly, near the end of the council meeting Monday night Mayor Williams stated that he wondered if he would still be a part of council in the future. I thought it was an odd comment at the time, but then was also unaware of what that two-hour closed meeting was about.
Strange times, indeed.
@toddtaylorr70
By Todd Taylor