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'Separating fiction from fact': Analysing Brandt's massive newspaper ad about its Wascana project

After failing to respond to most of CBC's questions for the past two months, Brandt offered its take on the controversy about the CNIB/Brandt building project in Wascana Park by buying a four-page advertisement in the Regina Leader-Post.

Brandt wants to build a 77,500-square foot facility where the old CNIB building used to sit in Wascana Park. In exchange for being allowed to build in this exclusive location, Brandt is offering CNIB 4,000 square feet of space rent- and utility-free for the next 50 years.

The project has faced significant scrutiny, with critics alleging it has been shrouded in secrecy and raising concerns that other tenants in the building might not conform to park rules.

Brant's ad says much of the criticism has been unfair.

"In recent months, the true story of the CNIB Site Renewal Project in Wascana Park has been buried under a mountain of half-truths, misleading speculation, false accusations and political posturing, designed to conceal the facts from the citizens of Regina," the ad says.

Since January, CBC has been publishing stories about this project and asking Brandt for interviews or sending the company questions. For the most part, Brandt has not replied.

When asked why, the company replied by email Friday saying "Brandt was confident that all issues would be resolved. However, it is now clear that Brandt is caught in the middle of a political dispute between the NDP and the Government, resulting in many false statements being published."

The ad includes a letter to Regina city council from Brandt Chairman Gavin Semple, who offered an explanation for the company's silence thus far.

"I have held back to this point as I acknowledge that people have a right to express their opinions," Semple wrote.

Geoff Leo
Geoff Leo

He said the rising criticism caused him a growing level of concern, and he said criticism from the city tipped the scale.

"To now see the City of Regina join the misinformation campaign in order to kill the project, I felt compelled to respond," he wrote.

Last week the Provincial Capital Commission (PCC), which runs Wascana Park, put the project on hold pending a review by the provincial auditor.

In the newspaper ad Friday, Brandt offered up "13 facts you may not know" about the project and said,"it's time to separate fiction from fact."

In the ad, Brandt lists allegedly fictional statements then counters them.

The criticisms are not attributed to anyone in particular, so it is difficult to assess whether Brandt is accurately summarizing its critics.

Brandt says it's investing millions

Brandt's ad said some critics have alleged the project will be "a licence to print money," while others have said "there is little or no philanthropic element" to this project, while yet others claimed "Brandt's sublease from CNIB is at no cost to Brandt."

The company says these claims are false.

Of its 77,550 square foot building, Brandt plans to give 4,000 square feet to CNIB and an undisclosed amount to the MS Society and other as yet unnamed charities.

The rest of the space will be leased at market rates.

Youtube
Youtube

Brandt's ad said the company is making a huge investment in the building and in charities.

"Brandt's total out of pocket investment in the building alone will be more than $30,000,000 to help CNIB rebuild," the ad says.

In addition, Brandt says "the sublease will cost Brandt over $12 million in donated rent and expenses," for CNIB. "Other charitable organizations will also operate rent free as part of the terms of their lease agreement."

Brandt claims the project 'has been approved at all necessary levels'

Brandt says critics have said the project "was never actually approved" and "violates" Wascana's Master Plan, a 2016 document that governs how the park is to be managed.

Brandt says critics have also alleged the Master Plan forbids additional tenants besides CNIB.

In response, the company points to the Master Plan itself, saying that document proves the critics wrong.

Brandt's ad said the Master Plan grants approval to rebuild the CNIB facility as a larger building and says, "the new building may accommodate other tenants in addition to the CNIB."

None of the critics CBC has spoken with have objected to CNIB rebuilding its facility in the park, nor have they objected to CNIB having additional tenants.

Critics' objections have centred on plans for the CNIB/Brandt building to have a much wider range of tenants than would normally be allowed under the master plan rules.

That plan says the park is set aside exclusively for education, recreation, culture, the environment and government.

Brandt has advertised for "general office" tenants for the proposed building and has publicly said retail outlets may also move in. Those sorts of uses are not allowed in the park and require changes to the master plan.

Even CNIB itself has tacitly acknowledged that is true.

In August 2016, CNIB and Brandt held a public consultation to talk about their plans.

In a newspaper ad announcing the event, CNIB said "this development will require amending Wascana Centre Authority's Master Plan in regards to building height and use."

Colliers International
Colliers International

Ryan Whippler, the acting executive director of the PCC, was even more explicit in an interview with CBC earlier this year.

He said the CNIB/Brandt proposal required public consultation because it went against the Master Plan approved in March 2016.

"When [CNIB] subleased to Brandt that would have triggered an amendment to the current master plan because they are not a permitted use, so they would need an amendment to the Master Plan," Whippler said.

Despite that, Brandt recently ran another full page ad in the newspaper, demanding a former Wascana park architect advisor apologize for saying the project, "was in contravention of the Wascana Centre Master Plan."

CBC asked why Brandt made that demand, given that CNIB itself acknowledged the master plan had to be changed to accommodate the project.

Brandt didn't address that question but said in an email Friday, "We do not believe the building as currently configured, nor its intended use, will require an amendment to the Master Plan."

Brandt denies secret dealings

Brandt's ad this week says its critics have claimed the company, "made a behind-the-scenes deal with the provincial government," that, "there is a secret one-dollar lease agreement between Brandt and the provincial government," and that the public consultation process "was hidden from view."

The company says these claims are false.

It says that the $1-a-year lease agreement for the 2.5 acres of crown land in Wascana Park is between the CNIB and the government, not Brandt and the government.

The original lease between CNIB and the government was signed in 1955 for $1 a year. It was renewed in 2016 at the same rate.

While it is true the lease is between the government and CNIB, it is also true that the province was aware in 2016 that Brandt was planning to build its 77,500 square foot commercial office building on the crown land and lease much of it out at market rates.

CNIB
CNIB

Minister of Central Services Ken Cheveldayoff acknowledged that the government knew Brandt would be building on this government land. He said it was fine because CNIB put the project out to tender.

"This was a tendered project. Any corporation, any company, anybody could have bid on it. Brandt decided to go forward," said Cheveldayoff.

As for the consultation process, Brandt denies the matter was hidden, pointing to the August 24, 2016 public consultation meeting, which was advertised in the newspaper and online.

Brandt says there was an "open public tender process"

Brandt says its critics claim "CNIB's developer selection process was not fair."

The company says that's false.

"All respondents had the same opportunity — only Brandt made a proposal."

The company says that it "became the formal development partner in the project only after being selected by CNIB in their open public tender process."

However, emails obtained by CBC show that Brandt and CNIB were planning the project months before the tendering process began.

On May 6, 2015, CNIB placed a newspaper ad calling for expressions of interest in its Wascana Park building replacement project.

Brandt and CNIB first submitted detailed building plans to the Wascana Centre Authority (WCA) in October 2014. The Brandt architect who worked on the project told CBC he was working on those plans in the summer of 2014.

Their submitted plans were reviewed multiple times by the park's Architectural Advisory Committee. After much review, the provincial government intervened and directed the CNIB to put the project out to tender, which happened seven months after Brandt and CNIB first submitted their plans to the WCA.

"I think it was a wise decision by government officials at the time to direct them to go to a bid process so its open and transparent and so others have an opportunity to bid on it as well," said Cheveldayoff.

CBC News
CBC News

In an email to Brandt, CBC pointed to how the company's newspaper ad said Brandt didn't become the "formal development partner" until after it won the May tendering process. CBC asked how it would describe its relationship with CNIB during the months previous to the tender when they designed the building, pitched the project to the WCA and discussed the WCA's concerns about the project.

"Though these discussions took place, they were merely ideas until CNIB selected Brandt as their formal development partner after the tendering process," the company wrote in an email.

Six companies requested information packages, according to CNIB. Brandt was the only company to make a proposal.

CNIB has declined CBC's repeated requests for a copy of the information package.

Brandt says it had PCC permission for demolition

Brandt says critics who claim, "Brandt will turn the CNIB/Brandt facility into their new head office," are mistaken.

"The building and site are not nearly large enough to suit Brandt's needs," the company's ad this week says.

Brandt also rebutted critics who claim, "the new facility will encroach on other areas of the park."

The company says that at its heart, the CNIB/Brandt project is really just a replacement of the old decrepit CNIB building.

The company says the size of the land parcel will remain the same, but acknowledges the building will occupy a larger footprint.

Finally, Brandt notes that critics have said "Brandt never received approval to demolish" the CNIB building. The company provided a letter from the PCC showing Brandt "requested and received a letter of approval from PCC to proceed with demolition" in October 2018.

The company says it relied on that letter.

"Brandt has been characterized as actively not following process throughout the project, and this is false," it said in an email to CBC Friday.

However, the PCC said in an email to CBC on Friday that it had been clear with Brandt's VP of Development, Brent Sjoberg, that the company would need to also seek permission from the city.

"Brandt was first informed verbally in ongoing discussions of its obligation to obtain permits. This was further reinforced in correspondence to Brent Sjoberg in November 2017 and January 2019. The correspondence indicated 'you will still be required to follow the city permitting processes for both the building and demolition' and 'PCC (and its predecessor Wascana Centre Authority) has never had any involvement with the City of Regina Building Permit process,' " the email said.

Brandt says it respects the PCC's decision to put their project on hold.

However, it says that, "the stoppage is only harming CNIB and other tenants that will incur needless additional expenses during the delay period" which it says could be, "as long as 12 months."