Council considers agency’s future after Hamilton Waterfront Trust representatives skip meeting about finances — again

The city has tapped a consultant to examine the financial viability of the Hamilton Waterfront Trust and offer advice if the organization opts to wind down.

In the meantime, councillors are expressing frustration - again - over representatives of the arm's-length agency not showing up to field questions about its latest financial statements.

I've had enough. We've asked them to appear before this committee numerous times, several times," Coun. Brad Clark said Thursday.

But talks focusing on the future of the waterfront trust - which formed in 2000 to steward redevelopment and connect Hamiltonians to the harbour - are scheduled for later this month and early October.

The agency's board hasn't given the municipality formal direction on a change in mandate," Mike Zegarac, the city's general manager of finance, told councillors.

But if the board gives an official nod to dissolving the trust, city staff and consultant KPMG will determine how to wind it down, handle assets and deal with contracts, Zegarac said.

Should it decide to continue having a role in the city's west harbour lands, KPMG would examine the trust's financial viability, Zegarac told city politicians Thursday.

Coun. Lloyd Ferguson, however, noted city politicians have already learned the board does indeed want to wrap up the trust and probably turn it back to the city."

That's what triggered" council's direction to staff to meet with trust representatives to hash out a path forward in the first place, Ferguson said.

The Ancaster councillor also wondered if longtime trust executive director Werner Plessl was even there anymore" or if he had already retired from his post. So we need all of this information back to us."

The transition" of the trust and Plessl's imminent" retirement are topics that shouldn't have been aired in open session, Coun. Jason Farr, who's a board member, told The Spectator.

What we are dealing with are bona fide closed-session issues of personnel, legal issues and contractual issues."

It's not fair that the trust's staff - as many as 110 in peak season - should have to stew over their place of employment amid talks, said Farr.

We want to reassure them - that's really key - there's much work still to be done and that work is ongoing."

Coun. Judi Partridge, who's also on the board, told The Spectator it would be logical for the trust to wind down" given much of its redevelopment projects have been completed.

It would be left to oversee a few amenities, such as the waterfront trolley, Williams Fresh Cafe and the ice/roller rink, the retiring Flamborough councillor said.

There's no point in keeping it going just for the sake of keeping it going. That doesn't make a lot of sense."

Plessl didn't respond to The Spectator's request for comment Thursday.

The trust has come under the city's scrutiny for years amid struggles with its bottom line, prompting municipal handouts, and concerns about transparency.

In 2017, it came under the microscope for owing the city hundreds of thousands in tax arrears. In 2018, council voted to buy out the trust's 45-year lease for the former Discovery Centre and its parking lots for $3 million, paid in instalments over 15 years, minus what it owed in unpaid taxes.

More recently, councillors have called for independent analysis to determine if it's still a going concern."

At Thursday's finance, audit and administration committee meeting, councillors considered the trust's 2021 audited annual financial statements, which showed a net revenue of $1.43 million compared to $31,759 the year before when the organization struggled during the pandemic.

Zegarac, however, pointed out the principal change" was a roughly $1.3 million contract with the city for waterfront development.

Finance staff also clarified a reference to $15 million in waterfront development revenue" wasn't true revenue," but rather, reflective of the value of projects.

We're flowing the money to the waterfront trust to pay the contractors," said Brian McMullen, director of financial planning, noting not all of the funds are provided at once.

Councillors - echoing dismay over absences from previous meetings and not having key documents in hand - expressed frustration over Thursday's no-show, despite an email requesting trust representatives attend. Plessl last appeared before city councillors in April.

I'm not sure how we push back, but this should not be happening," Clark said.

The committee requested that trust representatives make a presentation to the next council - to be elected Oct. 24 - on key documents, including finances, business plans and any changes to organizational structure.

Also, legal staff are to investigate whether the city can withhold payments from the trust until representatives report back with documents.

In an interview, Farr argued silly season" antics - a reference to election posturing - were behind his colleagues' indignation over the trust's absence.

Notwithstanding the clean audit," just a few months ago, councillors had a robust" closed-session discussion about the trust, he said.

Farr said he suggested that much in a message to city staff but didn't receive a reply and figured the trust could address the committee in December, as indicated in the city's email.

The Ward 2 councillor - who's also seeking re-election - added he'd tried unsuccessfully to learn what progress a city human resources staffer seconded to work amicably" on the trust file had made before leaving for other employment.

The agency, meanwhile, remains an easy target" for whatever reason," Farr bristled.

My personal opinion is the hysteria, at times, is unfounded. I've been a proud member for 12 years. My personal opinion is we need to celebrate the accomplishments, especially under the leadership of our executive director."

Partridge agreed, noting the trust has turned a few million dollars in seed money into tens of millions in amenities. Absolutely, I think they've done an amazing job."

Teviah Moro is a reporter at The Spectator. tmoro@thespec.com