Properties in GTA greenbelt owned by companies linked to De Gasperis family slated for housing

Seven companies controlled by members of the De Gasperis family, long-time homebuilders based in Vaughan, own 28 properties around this parcel of farmland the Ontario government wants to remove from the Greenbelt in Pickering. (Giuseppe Fiorino/CBC)

Days after reporting a family of prominent Ontario developers are primary owners of protected Greenbelt land that could soon be opened for housing development, CBC Toronto has linked additional properties to the De Gasperis family.

The Ford government is currently consulting the public on a plan to remove approximately 2,995 hectares of land from the Greenbelt, which was created in 2005 to permanently protect agricultural and environmentally sensitive lands in the Greater Golden Horseshoe area from development. The government says it's needed to build 55,000 homes.

The biggest parcel of land on which the province is proposing to allow housing construction includes around 1,900 hectares of mostly farmland in and around the Duffins Rouge Agricultural Preserve (DRAP) in north Pickering.

CBC previously reported that companies listing brothers Silvio, Carlo and Michael De Gasperis as directors own land in three of the 15 areas proposed for removal in the Greater Toronto Area (GTA), including 16 properties in the DRAP.

• Wealthy Ontario developer close to winning long battle to build homes on protected Greenbelt

• Who are the GTA developers set to benefit from Ford government's Greenbelt land swap?

However, following additional research into property and corporate records, CBC has now identified 28 properties in the DRAP, covering a total of 718 hectares, that are owned by seven different holding companies controlled by the De Gasperis brothers.

The 28 lots were bought for more than $21.5 million, and 24 were purchased before the Greenbelt was created.

The four properties bought after the Greenbelt's creation include two purchased together for $1.7 million in 2016 and two others bought separately in 2020 for $7.9 million and $3.5 million each.

(CBC News)

Long fight over DRAP

The De Gasperis family founded the Tacc Group of companies, which includes Tacc Developments, Tacc Construction, Arista Homes, Opus Homes and Decast Ltd., among others, and are known for building homes in planned subdivisions across the GTA.

The brothers and their companies have been prolific political contributors to Ontario political parties, with the majority of donations made since 2014 going to the Progressive Conservative Party of Ontario and its politicians, Elections Ontario records show. Tacc companies have also hired lobbyists with tied to the PC government, the lobbyist registry shows, although none of the records indicate they were hired to influence decisions on the Greenbelt.

CBC reached out to Tacc Developments to request an interview but did not immediately receive a response.

Last week, the Ontario Home Builders' Association (OHBA), of which Tacc is a member, issued a statement voicing its support for the government's plan.

"We are in the midst of a housing crisis. When the Greenbelt was created, its boundaries encompassed not just environmentally sensitive lands but also farmland and land that had previously been designated for growth for housing and employment spaces," the OHBA said in an email statement.

"The lands being removed from the Greenbelt are close to, and in some cases adjacent to, existing developments and servicing. The lands will be subject to strict timelines for building to commence, which will enable the timely addition of desperately needed additional supply."

WATCH | Here's what Doug Ford has said about developing Ontario's Greenbelt: 

Here’s what Doug Ford has said over the years about developing Ontario’s Greenbelt

16 days ago

Duration0:40

From pledging to never build on it in 2018 to saying it's part of the solution to Ontario's housing crisis in 2022, here's how the premier's position on the controversial issue has changed.

CBC reported earlier this week on how Silvio De Gasperis started buying up parcels of farmland in the DRAP in 2003 with hopes of one day transforming them into subdivisions. But those plans were dashed when then-Premier Dalton McGuinty's Liberal government included the area in the Greenbelt and later passed a law protecting the land's agricultural status.

De Gasperis undertook a campaign to hinder plans for the Greenbelt, working with Pickering to develop the preserve land anyway, and eventually took the province to court. His efforts failed and the agricultural land has remained protected ever since.

It's unclear what the fate of the preserve lands will be going forward, but if it is removed from the Greenbelt, the Ford government has said it expects landowners to prepare housing plans quickly, with construction to begin no later than 2025.

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How much will developers profit from their lands being removed from Ontario’s Greenbelt?

The provincial opposition is calling for an investigation into how much property owners stand to benefit from the Ontario government’s proposal to open up thousands of acres of environmentally sensitive Greenbelt lands for development.

In a release Friday, NDP MPP Marit Stiles said she wants Ontario’s auditor general to conduct a “value-for-money audit investigating how much wealth would be increased for property owners when their lands are removed from the Greenbelt,” and if “this wealth transfer is in the public interest.”

Stiles also asked the AG to consider “conflicts of interest and sharing of insider information” and “refer any evidence of misconduct to the appropriate authorities.”

In an email, a spokesperson for Minister of Municipal Affairs and Housing Steve Clark said the NDP was “opposing homes getting built.”

“We will continue to explore every possible option to get more homes built faster so more Ontarians can find a home that meets their needs and budget,” said Chris Poulos.

The AG’s office confirmed it received the letter but “a decision has not yet been made” on whether it would investigate.

The request comes after a Toronto Star/Narwhal investigation into the Greenbelt lands Premier Doug Ford’s government is proposing to open up for development. Last month, the province announced it would remove a total of 7,400 acres from 15 areas of the Greenbelt, expediting development on those lands to help address the housing shortage.

The Star/Narwhal investigation found that of the 15 areas to be opened for development, eight included properties purchased in the four years since Ford was elected.

The Star/Narwhal investigation also found that nine of the developers who stand to benefit most from Ford’s Greenbelt land swap have donated significant sums to the Ontario Progressive Conservative party, totalling $572,000 since 2014.

In one case, a company associated with developer Michael Rice purchased nearly 700 acres in the Greenbelt in the Township of King for $80 million, just two months before the government announcement.

In her letter, Stiles questions the “suspicious timing of recent purchases of Greenbelt land” by landowners with donor and political ties to the PC Party, and references “powerful” developers Rice and Silvio De Gasperis by name.

Beginning in 2003, companies run by De Gasperis have bought at least 1,300 acres of land in the Duffins Rouge Agricultural Preserve.

De Gasperis — either through his own development company TACC or a consortium — owns land in four of the 15 areas of the Greenbelt slated to be opened for development.

Neither Rice nor De Gasperis responded to questions from the Star about Stiles’ letter by deadline.

Stiles is also asking the auditor general to “investigate the economic and environmental impacts on agricultural and natural systems.”

“The removal of Greenbelt lands also has several significant long-term environmental consequences, including threatening the integrity of interconnected natural and agricultural systems,” said Stiles.

“Environmental experts warn that removing pieces of the Greenbelt threatens all of it.”

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'MASSIVE DISTRACTION': Torstar co-owners say focused on 'quick divorce'

Speaking for the first time publicly since their business relationship soured, Torstar Corp. owners Paul Rivett and Jordan Bitove confirmed there was no reconciliation ahead as their approaches to business were too different.

The two, speaking at the launch of a TVO documentary about the Toronto Star newspaper Thursday evening, were however in agreement that they hope to resolve the split of their partnership as quickly as possible.

Rivett and Bitove are equal partners in Nordstar Capital Inc., an investment company that purchased Torstar in 2020 for $60 million, and controls all of its assets, including the Toronto Star newspaper.
In September, Rivett filed an application to the Ontario Superior Court seeking a court order to wind up the media company, citing “irreparable” damage to his relationship with Bitove, while in October the two agreed to move their dispute to meditation-arbitration.

Bitove, who is publisher of the Toronto Star, emphasized at Thursday’s event the importance of the paper as a civic institution and its adherence to its guiding social principles, while Rivett pushed on the need to diversify revenue streams through experiments like the company’s foray into online gambling because the organization is losing about $1 million a week.
Bitove said the dispute was a “massive distraction” from efforts to turn operations around.

“What kills me inside is we had such great momentum … the best thing is a quick divorce so we can allow our team to move forward,” he said.

Rivett, speaking at a press scrum after the event, said the two were working as fast as they could to get it resolved, with a likely resolution in weeks rather than months.

“Divorces aren’t great, they’re a distraction for sure, and that’s why we’re trying to get it done as quickly as possible. It causes confusion, it causes anxiety.”
He said it was crucial for the company to improve search engine optimization and the delivery of online content, noting that while the New York Times has a margin of around 10 per cent, there are digital content businesses with margins of 80 per cent.

He said that for a news organization like the Star to succeed, there also needs to be more collaboration between the sales and news sides of the business.

“If we want to have advertising on snow tires, we can’t just be constantly writing that we shouldn’t have cars.”

Rivett was previously president at Fairfax Financial, while Bitove was part of the ownership consortium that built the SkyDome, now the Rogers Centre.

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NordStar Capital owners Paul Rivett and Jordan Bitove entered into arbitration Wednesday after mediation talks failed to resolve a fractious dispute between the two former business partners, according to three people familiar with the matter, as the duo seek to divvy up assets that include the Toronto Star newspaper.

Mr. Rivett and Mr. Bitove held two mediation sessions in late October, after Mr. Rivett went to court claiming he and his partner were deadlocked and could no longer work together. He asked the court to dissolve NordStar, a private equity firm in which they are equal partners, and proposed an auction process for splitting up its assets. At a brief hearing on Oct. 3, lawyers on both sides agreed to resolve the matter outside of court and pursue mediation and arbitration, which is conducted privately.

Mr. Rivett and a spokesperson for Mr. Bitove declined to comment.

Even with the assistance of a mediator, the sources say the two owners have so far been unable to agree on how to split up NordStar’s assets, which also include Metroland Media Group and investment stakes in VerticalScope Holdings Inc. FORA-T and Blue Ant Media Inc. The final outcome could now be in the hands of arbitrator J. Douglas Cunningham, a former justice with the Ontario Superior Court.

The Globe and Mail previously reported that Mr. Rivett and Mr. Bitove hoped to resolve the matter by the end of the year. The Globe is not identifying the sources because they are not authorized to speak publicly.

One complicating issue has been the sharp drop in the share price of VerticalScope, a digital media company that operates some 1,200 online communities. NordStar owns a 37-per-cent stake in VerticalScope, which went public last year, and the value of its shareholding hit more than $260-million in September, 2021. It has since fallen to roughly $47-million amid a deep rout for technology stocks.

Mr. Rivett and Mr. Bitove partnered in 2020 to purchase Torstar Corp., the parent firm of the Toronto Star, for $60-million, and pursued new revenue streams to fund journalism, such as launching an online casino and sportsbook when Ontario opened the market to private operators this year.

But the relationship quickly unravelled, as detailed in a court application Mr. Rivett filed in September through companies he controls. He claimed he and his partner had agreed on cost-cutting measures, but Mr. Bitove refused to carry out the plans at the Toronto Star, where he also serves as publisher.

Mr. Bitove also allegedly refused to provide financing for some of NordStar’s early-stage ventures, and reneged on an agreement to sell real estate assets to pay down debt.

As the disagreements deepened, Mr. Bitove attempted to sideline his partner by moving to appoint himself to the boards of various subsidiaries in a bid for greater control, according to the court application.

After The Globe reported on the court filing, Mr. Bitove responded with a statement through communications firm Navigator Ltd., saying he would make no apologies for his decisions at the Toronto Star, while implying Mr. Rivett preferred to “cut costs to the bone.”

Despite the apparent animosity between them, the former partners are scheduled to appear on stage together Thursday evening as part of a panel discussion following the screening of a documentary about the Toronto Star. The film, titled Viral News and produced by TVO, follows the newspaper during a COVID-19 pandemic lockdown and features interviews with Mr. Rivett and Mr. Bitove before their public split.

https://www.tvo.org/video/documentaries/viral-news

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100+ gang members living in York Region, police say

Some of the 27 firearms seized during Project Monarch, led by YRP. Elizabeth Keith/NewmarketToday

A migration of Toronto gang members into more suburban areas has resulted in more than 100 gang members living in York Region, intelligence from York Regional Police said. 

The migration is a result of gang members accumulating wealth through crime and having the means to buy or rent property in the suburbs, according to a report on Guns, Gangs and Violence Reduction. The report was presented by Insp. Ahmad Salhia, Det. Sgt. Rich Gaudet, intelligence analyst Sue Dunlop to the police board at its monthly meeting Nov. 7. 

Intelligence shows more than 100 members of 37 different gangs are living in the region. It also highlights that there have been 32 incidents involving gang members in the region this year alone. 

YRP said there has been a "marked increase in gun and gang violence across the Greater Toronto Area. Gang-related activity transcends regional borders." 

So far in 2022, YRP has made 37 front-line firearm seizures and is on track to seize about 50 by the end of the year. This only accounts for guns seized during traffic stops or interactions with individuals and not through investigations. 

Once a gun is seized, it is traced to determine its origins, the report said. Of the 37 guns seized on the front line, 68 per cent were traced to the U.S. while 32 per cent are unknown, which could mean the serial number was obliterated or it's still being traced. 

On top of seizures, the hold-up unit seized 23 guns, of which 92 per cent were traced to the U.S. The homicide unit seized three, with one traced to the U.S., and the guns, gangs and drug enforcement unit seized 42 with 81 per cent traced to the U.S. 

"Contextualized, out of 107 firearms that you see, 83 of them were successfully traced. Of those 83 guns that were traced, 100 per cent of them were identified as illicit firearms coming in from the United States and into Canada," Salhia said. 

When it comes to enforcement, the report highlights Project Monarch, a multi-jurisdictional joint forces operation led by York Regional Police. It resulted in 400 charges being laid, 22 arrests, and a large number of drugs and guns seized. 

It also identified a possible point of entry for illicit firearms into Canada from the U.S. at Walpole Island, a First Nation community on the St. Clair River, right across from Port Huron, Michigan in the U.S. 

"At its narrowest point there's an 800 metre gap and as you can see, it's very easy for organized crime and other criminals to import illicit contraband into the country," Salhia said. 

He said building partnerships with the Indigenous community there and with other police services in Ontario is key to addressing the flow of illegal firearms.  

The report also touched on Bill C-21, which went into effect Oct. 22 and involves a national freeze on buying, selling and transferring handguns, limits access to firearms for people involved with domestic violence or self-harm, introduces new penalties and investigative measures, as well as some anti-smuggling measures. 

While YRP said it supports any measures to enhance and protect public safety, it added that the bill doesn't go far enough to disrupt the entry of illicit firearms to Canada from the U.S. 

Locally, the report said YRP will continue to combat guns, gangs, and violence through its reduction strategy which includes four pillars: intelligence, suppression, enforcement, and community mobilization.

"Anytime we can seize a gun, we know that we are saving a life," Salhia said. "Our commitment to our community will continue and is unwavering."

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