A billboard advertises city land for sale in the Harlow area. This month the city will evaluate bids from the private sector to take over land sales and economic development at city hall, including one from a company founded by current managers of the Invest Medicine Hat office, the News has learned.--News Photo Collin Gallant
cgallant@medicinehatnews.com@CollinGallant
Nearly everyone in a city department set to be outsourced this fall is also listed as an employee or director with a company likely to pursue a contract to oversee all city land sales, the News has learned.
The principle in that company, Invest Medicine Hat managing director Jason Melhoff, directed questions on Wednesday to more senior city staff while expressing his wish to clear up any notion of conflict of interest.
The former head of a municipal union, however, says the city needs to be transparent about any potential deal or face legitimate criticism.
“They absolutely have to be open about it,” said Marle Roberts, a retired water treatment plant worker and former president of the Alberta chapter of the Canadian Union of Public Employees.
“It looks like they’re slipping this through without public comment, and City (Hall) and council need to be transparent about it.”
Invest Medicine Hat was created as a city department two years ago to handle economic development for City Hall, but has since grown to oversee the land department and distribute business grants and incentives. Melhoff, a former local Chamber of Commerce president, was hired to lead it.
He is listed as a director of Orka Management, which is listed as an interested party on a public procurement website where the city is seeking out a contract operator for economic attraction and landsales.
Other company directors are listed as Invest manager of strategic planning Erik van Enk and Invest manager of land development Chris Perret.
Three other junior city employees in the office are also pictured on Orka’s website, that includes a banner picture of Finlay Bridge and describes itself as a “business consultancy firm specializing in … planning, land development, financial planning, marketing and communications.”
It was one of 16 parties that downloaded a package outlining the city’s desire to contract out “land and economic development services” in a process in which proposals are due next Monday. Other “interested parties,” include seven national real estate, accounting, or engineering firms, but some or all may not submit formal proposals.
The News was first to report this week that the largely unadvertised process was coming to a conclusion, and that a 10-year term for the winner could be announced in August.
City manager Bob Nicolay told the News he strongly supports moving the functions to an independent private sector operator. (Economic development was contracted out from 2015 to 2019).
He also said evaluating proposals is subject to a third party and he has no part in the process.
“Obviously someone who knows the market or is from here might have an advantage from someone out of town,” he said, adding that “a number” of strong proposals may be submitted after the five-week period ends on July 19.
At that point the city would rank candidates in early August and call for a shortlist of further presentations. A potential administrative decision could be made prior to council’s Aug. 16 meeting and contract negotiations could be concluded by Sept. 2, according to a timetable provided in bid documents.
What is included in the contract, which would be for 10 years, with two options for further 10-year extensions, is not entirely clear.
Because it is a “request for proposals” process and not a straight ahead tender, the requirements and qualifications are dependent on what is proposed.
Duties and compensation are negotiable depending on the presentation put forward.
It’s also not known how the contract would be paid for, or how sale proceeds would be returned to the city, though bulletin points provided from the city’s communications department state the city would retain power to set direction and approve strategy.
Roberts said there are too many questions for her liking and would like them known before a deal is signed.
“They just brought this into the city (from the private sector) and now they’re putting it out again, probably run by the same people, and it’s supposed to save money? How?” she asked, noting the city’s recent decision to operate Co-op Place after cancelling a contract with a private operator.
