SCHC Press Releases 2022:
October 14, 2022
ONTARIO SUPERIOR COURT REMOVES BRUCE COUNTY AS TRUSTEES OF KRUG TRUST
“Such a breach is not ‘technical;’ it is an astonishing breach by elected officials and their staff.” -Justice G.D. Lemon, Ontario Superior Court, Oct. 12, 2022
After four years of challenging Bruce County and its secret, unlawful use of a restricted trust bequeathed by Bruce A. Krug for the County archives, the Southampton Cultural Heritage Conservancy (SCHC) is pleased that Justice G.D. Lemon of the Ontario Superior Court has removed the County as trustees in his October 12 decision, stating, “The County cannot be trusted to act appropriately with this property.”
As Justice Lemon explained, “… on any definition of a fiduciary duty, the acts of the County breach its obligations…. If the County were allowed to do as it has, no testator would ever leave trust funds to a municipality in the manner of this will; that would be to the detriment of the community at large.” The decision continues, saying, “it is a case of the County ignoring its duties and doing something entirely in breach of the terms of the will.”
In February 2019 SCHC filed an Application against the County under Section 10 of the Charities Accounting Act, saying they had breached the Krug Trust by secretly using the funds to purchase the former Anglican rectory at 254 High St, Southampton, adjacent to the County Museum. The County planned to demolish it and build a nuclear institute with Bruce Power. After a series of closed meeting investigations, investigators found the County had gone into closed meetings unlawfully on twenty-one occasions to discuss their secret plans. This was more than four times greater than the City of Hamilton, which had the second largest number of unlawfully closed meetings in Ontario with five.
Justice Lemon quoted “a County representative”, which was actually Saugeen Shores Mayor Luke Charbonneau, who was Chair of the Museum Committee when it refused to disclose documents, and denied the breach. “I don’t see any connection between how the land was purchased and this step that we are taking [to remove the rectory]….We own the land and we’re taking steps to clear it for redevelopment.” The Court reminded the County that “the land is a trust asset”, not a County asset.
Justice Lemon found in January 2022 that the County had breached the trust, and in his October 12 decision stated, “The County’s failure to abide by its duties…before and after my decision is
baffling and the County cannot continue to act as trustee of the trust asset: the property in dispute.”
BMO Trust Co. is being asked to serve as interim trustee and to take “all necessary steps to sell the property to a purchaser other than the County or any individual or entity not in a non-arms length capacity from the County”. Justice Lemon ordered the County to pay the costs for the trustee services and the maintenance of the property, and that SCHC also submit their additional costs. In May, Justice Lemon told the County it must pay $140,000 in previous legal costs to SCHC.
SCHC Board member Laura Robinson disclosed that “SCHC will prepare submissions for Justice Lemon for a more permanent board of trustees for the Krug Trust that is transparent and of benefit to the public. We agree with Justice Lemon on all counts and are satisfied that the legacy of Bruce Krug will now be respected. We are also relieved that Bruce County has been prevented from demolishing the 1894 former rectory that has been recognized by the National Trust for Canada as one of ‘Canada’s Top Ten Endangered Places.’ ” <https://nationaltrustcanada.ca/nt-endangered-places/former-st-pauls-anglican-rectory>
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February 1, 2022
COUNTY OF BRUCE FOUND GUILTY IN BREACH OF TRUST
On January 31, 2022, Justice Gordon Lemon of the Ontario Superior Court ruled that “Bruce County is in breach of the Krug trust by virtue of its use of the funds to purchase the land at High Street” (see Decision). The decision follows the March 2019 Application by Laura Robinson and the Southampton Cultural Heritage Conservancy (SCHC) under the Charities Accounting Act, alleging the County had secretly breached the Krug Estate Trust to purchase the former Anglican rectory at 254 High Street, Southampton, with the intent to demolish it and build a nuclear institute.
Bruce Krug had bequeathed trust funds to the County for “the archives building for the storage and display of the archives”. Justice Lemon found that “There is no explanation of why the trust would pay for the entire lot when the archive did not need the full lot. There is no explanation why the trust would pay for a building on the lot that the County wished to demolish for its own purposes unrelated to the trust.”
Laura Robinson, a long-time resident of Saugeen Shores, stated that “It’s been over three years since I asked the County under what circumstances were they able to use the bequest from Bruce Krug for the purchase and planned demolition of the Anglican rectory for a nuclear institute.” The judge did not mince words about the County’s practice of withholding information, commenting that “on the admitted record, the County’s behaviour has been atrocious throughout,” adding that citizens were forced “to bring Freedom of Information applications and motions within this proceeding to successfully obtain information and documents from the County. As a result, there was no way for any member of the public to know if the Krug trust funds were used to purchase the property. By withholding this record of the use of the funds, the County prevented any oversight of its actions as trustee.” Justice Lemon further stated, “the County has been, at the very least, unreasonable in its failure to provide Southampton (the party and the community) with proper and transparent accounting of its decision-making process with respect to the Krug trust.” Robinson remarked, “The County’s actions have undermined the very foundation of transparency and democracy so fundamental to acceptable levels of governance.”
Regarding the future of the former rectory at 254 High St, Justice Lemon wrote: “Given my finding that the High Street property is a trust asset, nothing further will be done with respect to demolishing the house on the property without further order of this court. I remain seized of that issue.” Given Bruce Krug’s life-long commitment to heritage, Justice Lemon observed that to demolish the historic 1894 rectory would not only “result in a diminution of the value of the asset” but that it “would appear to be contrary to the wishes of Mr. Krug.”
Robinson and SCHC believe Justice Lemon’s Decision is an excellent one and support his direction to the Public Guardian and Trustee, and the Krug Estate Trustee (CIBC) that they submit their plans to him with regard to the future of the Trust.
COUNTY OF BRUCE FOUND GUILTY IN BREACH OF TRUST
SCHC PRESS RELEASES 2021
January 11, 2021
INVESTIGATION FINDS SIX MORE UNLAWFULLY CLOSED MEETINGS OF BRUCE COUNTY COUNCIL: Eighteen meetings now found to be unlawfully closed
On January 14, Bruce County Council will receive the third closed-meeting investigation report in a year. Aird & Berlis LLP, the law firm acting as the Local Authority Services (LAS) investigator, found that all six of the meetings it investigated were closed unlawfully.
This brings the County’s total to at least 18 unlawfully closed meetings. And there may be more. Two FOI appeals are expected to reveal still more documents from additional meetings. Despite the shocking findings, the County has not disclosed the documents from these meetings. (Click here for the latest Aird & Berlis Report:
https://pub-brucecounty.escribemeetings.com/filestream.ashx?DocumentId=16278).
The years investigated, 2016 to 2019, mark the beginning of the Nuclear Economic Development and Innovation Initiative—a partnership between the County and Bruce Power, which includes the creation of the Nuclear Innovation Institute (NII). Documents received this week through a separate Freedom of Information (FOI) request show the County and Bruce Power initiated a ten-year Nondisclosure Agreement on July 1, 2016 (attached). During this time period, the County’s Museum Committee and Executive Committee went into at least 18 unlawfully closed meetings.
The cost to County tax-payers for the three investigations totals $41,130, in addition to the cost of staff time and consultation with their legal counsel. Aird & Berlis investigated this third set of meetings after documents disclosed from earlier closed-meeting investigations showed that the former Southampton Anglican Rectory was purchased, not to expand the Archives adjacent to the Rectory, but to build a nuclear institute in partnership with Bruce Power. The former St Paul’s Anglican Rectory is on the National Trust’s list of “Canada’s Top 10 Endangered Places.”
In 2013, Chesley philanthropist Bruce Krug bequeathed a restricted trust to be used only for the Archives building for the storage and display of County archives. The archives are stored in the County museum. The County spent $550,000 of the Krug Trust to purchase the Rectory and were about to use most of what was left to demolish it so they could build a nuclear institute. The County claims an Archive expansion could not occur without the rectory being demolished, but their own closed meeting report of October 5, 2017, reads, “While there is benefit to having the entire property, the proposed new build for the Archives and Community space would only require the lot. However, staff feel the strategic benefit of the entire Land parcel is the best course for future development. The risk to the proposal is disposal of the residence.” The “lot” refers to a 40-foot section of the rectory property immediately adjacent to the museum. The Will of Bruce Krug stipulates that Trust funds not used for the stated purpose must be returned to the Estate. The Trust cannot be used for a speculative development in the future.
Sheila Latham, Chair of the Southampton Cultural Heritage Conservancy (SCHC), said, "If the meetings had been open to the public, the County would not have pursued its misuse of the Krug Estate Trust. Even the expert planners hired by the County advised that the land on which the Rectory sits is not needed for Archives expansion."
In March 2019, the SCHC and Ms. Robinson filed an Application at the Ontario Superior Court, citing Section 10 of the Charities Accounting Act, alleging the County breached the Krug Trust by using monies for a purpose outside the restrictions specified in the Krug Will.
In October 2018, Bruce Power announced it was relocating the NII after overwhelming public outcry over the planned demolition of a historic building, yet the County ordered a demolition permit for the Rectory in January 2019. In addition to over $40,000 paid for closed meeting investigations, the County has spent upwards of $100,000 so far defending the breach it committed.
SCHC continues to pursue the matter in the Courts, maintaining that the Krug Trust has been misused, that the historic Rectory should be protected, and that the Trust should finance the digitization of the Archives for public access online. An off-site storage facility in a cost-efficient area will provide a practical alternative to a physical expansion of the museum, saving the County millions of dollars.
SCHC PRESS RELEASES 2020
July 8, 2020;
BRUCE COUNTY CONTRAVENES MUNICIPAL ACT AGAIN: INVESTIGATION FINDS EXECUTIVE COMMITTEE UNLAWFULLY HELD CLOSED MEETINGS RE BRUCE POWER NUCLEAR INNOVATION INSTITUTE
On July 7 law firm Aird Berlis delivered their investigative Report in response to a closed-meeting complaint filed against Bruce County’s Executive Committee concerning secret meetings to discuss a proposed multi-million-dollar Nuclear Innovation Institute in Southampton, Ontario. The investigation found the Committee contravened Section 239 of the Municipal Act seven times between 2016-18 when it held closed meetings concerning the proposed institute, a partnership with Bruce Power, and potential funding from the Ministry of Advanced Education and Skills.
These seven meetings are in addition to the five secret meetings about the proposed institute held by the Museum Committee—also comprised exclusively of County Councillors—found to be unlawful in December 2019 in a separate investigation (see Dunn, Scott, below). In total, Bruce County contravened the Municipal Act at least twelve times with secret meetings about the proposed Bruce Power Nuclear Institute. Aird Berlis acts as the Local Authority Services (LAS) investigator for Ontario municipalities in the latest report. Report: https://pub-brucecounty.escribemeetings.com/FileStream.ashx?DocumentId=10532
In addition to its secret meetings, the County faces a breach of trust complaint filed in Ontario Superior Court by the Southampton Cultural Heritage Conservancy (SCHC) and Southampton resident Laura Robinson. The complaint alleges that the County misused the restricted Trust bequeathed by philanthropist Bruce Krug to purchase Southampton’s former St Paul’s Anglican Rectory with the express purpose of demolishing it in order to make way for the institute.
“First the County misused trust funds from Bruce Krug, so they could build a nuclear institute” said Robinson. “Then it contravened provincial laws and held secret meetings. They show an appalling disrespect for Mr. Krug, and for democracy and transparency. Mr. Krug’s family needs an apology, the breach to be rectified, and all agendas, reports, documents, and minutes related to these meetings need to be released to the public immediately.”
After the investigative report of December 2019 showing five breaches of the Municipal Act, the County has refused multiple “Freedom of Information” requests, as well as requests for documents from the other seven secret “closed” meetings on the nuclear institute. Tax-payers paid for the first investigation and are on the hook for the second, when funds should be directed to families and businesses struggling to survive.
This spring SCHC reached out to the County, noting that Ontario’s Chief Justice recommended cases go to mediation in order to relieve the COVID-induced court backlog. The Conservancy also noted that, in addition to the investigation costs, tax-payers have already footed a legal bill defending the breach of trust of close to $50,000 even though Bruce Power stated in November 2018 that they would not use the site, out of respect for the mass public opposition to the proposed demolition of the former Rectory.
The SCHC letter to Council also noted the worldwide impetus, because of COVID, to ensure that as many documents as possible are digitized and available on-line, so people seeking information are not at risk in public buildings. “We recommended that the Trust be used, as Mr. Krug directed, for the storage and display of the archives. The digitization of archives is how archives are stored in the twenty-first century, which also provides for public safety” said SCHC secretary Sheila Latham, PhD, retired professional librarian and manager of a university archives. “The originals are stored off-site in a cost-effective location.”
At a July 2 Council meeting, Councillors voted against mediation, despite mounting legal costs to the public, and disregarded the public safety suggestions in the letter. The County Executive Committee meets on the morning of Thursday, July 9, via live-stream to discuss the Report. SCHC will issue a statement soon after the meeting concludes.
Summary:
In 2014 Bruce County was found to have contravened Section 239 of the Municipal Act after an investigation found Council went into secret meetings to discuss the Deep Geological Repository—a nuclear waste dump—it supported with Bruce Power. That investigation clearly outlined for the County what criteria must be met before it can declare a meeting closed. Council and staff were required to undergo training in proper procedure; Council has continued to refuse multiple “Freedom of Information” requests submitted to the Privacy Commissioner; and refuses calls for cooperative mediation in its insistence to pursue Court Hearings concerning the breach of trust despite the Superior Court’s advice to pursue mediation. SCHC urges the County to comply with the Aird Berlis Report in this case and, in the future, make every effort to comply with the Municipal Act, operate in a transparent, democratic, and fiscally responsible manner, and release the outstanding documents from these meetings.
The Southampton Cultural Heritage Conservancy site can be found here: https://www.southamptonheritage.org/. Facebook site here: https://www.facebook.com/southamptonheritage/
SCHC PRESS RELEASES 2019
Wednesday, December 11 2019
Closed Meeting Investigation: County of Bruce refuses to release documents despite contravening Municipal Act on five occasions:
On December 10, 2019, Clerk for the County of Bruce, Donna Van Wyck, sent a defiant refusal to provide public access to minutes for five closed meetings, despite findings by a delegated investigator that the County breached the Municipal Act five times when the Museum Committee went into closed meetings to discuss a partnership with a nuclear institute. The investigation by Amberley Gavel found the County had no grounds for closed meetings in which the County privately discussed matters pertaining to the purchase, sale, and demolition of an historic building, which would be replaced by a nuclear institute at 254 High Street in Southampton, ON. Nor were the meetings closed for “educational purposes.” Van Wyck wrote, “The report from the Closed Meeting Investigator does not change the status of the Closed Meeting Minutes, therefore the Closed Meeting Minutes will not be released.” The Southampton Cultural Heritage Conservancy calls for the County to comply with the investigator’s Report, and release documents to the public that never should have been secret in the first place.
The investigation reads, in part: “The closed sessions of the County of Bruce Museum Committee meetings of May17, July 5, July 12, and October 4, 2018, were not closed in compliance with Section 239 and any of the permitted exceptions to its open meetings provisions.” The investigation found that one aspect of the January 3, 2019 meeting which could concern “the disposition of property” may qualify to be closed, but added: “None of the sessions that are the subject of this report proceeded properly with respect to the provision of direction to staff in closed session. There were no records of any resolutions dealt with in closed session providing such direction, although the ensuing open minutes referred to direction having been given. The Municipal Act only contemplates providing direction in closed session by way of resolution. Full Report: : https://pub-brucecounty.escribemeetings.com/FileStream.ashx?DocumentId=7184:(Pg. 68-75)
The complaint was filed in February 2019 when community members were shocked by the issuance of a demolition permit of the County-owned historic 254 High St, the former Anglican Rectory in Southampton, ON. The building had been secretly purchased by the County in 2017 during discussions between the County and Bruce Power for a Nuclear Innovation Institute. After Bruce Power said it would locate elsewhere, Museum Committee chair Luke Charbonneau claimed it still had to be demolished and replaced by “an institutional building”, and hoped Bruce Power would reconsider and locate there. The County then obtained a demolition permit to destroy the classic Victorian building. In June 2019, the National Trust declared it one of the Top Ten Endangered Places in Canada; the only Ontario building to make the national list: https://nationaltrustcanada.ca/nt-endangered-places/former-st-pauls-anglican-rectory .
The news that the Closed Meeting Investigation reveals impropriety during the discussion of the Nuclear Institute, reinforces the case that the Southampton Cultural Heritage Conservancy put forward in February 2019 in an Application filed under the Charities Accounting Act, stating the County had committed a breach of trust when it used the restricted trust of the Estate of Bruce Krug to purchase the rectory so it could be demolished for the Nuclear Institute. Mr. Krug was a generous philanthropist who restricted the funds to “the Archives Building for the storage and display of the Archives of the County.” The County’s own plans show the archive expansion does not necessitate the demolition of the Rectory. The County was about to continue to use the Krug Trust to demolish the rectory when SCHC filed against them. The Museum’s 2017 Feasibility Study recommended the Rectory be used for post-secondary Indigenous Studies, which the SCHC fully supports.
For more details, see https://www.southamptonheritage.org/about-the-issue . Presently, parties await an Ontario Court of Appeal decision after the County refused to supply documents from multiple closed meetings concerning the Nuclear Institute.
Bruce County has contravened provincial laws. The Southampton Cultural Heritage Conservancy calls for the immediate release of all documents pertaining to closed meetings concerning the 254 High St. property, and to rescind the demolition permit.
09 October 2019
SECRETS REVEALED IN OLD HOUSES
Southampton’s old houses have secrets. Home renovations can lead to unusual finds, but sometimes a loose floorboard, a crack in the plaster, or something oddly out of place can provide the clue to a discovery that will leave a homeowner struggling to answer questions such as: What is this? Why is it here? How old is it? Who put it here? The winding journey to answers can be challenging and fascinating. We want to know who lived here before us, and how they prospered or struggled, because that knowledge enriches our own sense of being, and our place in the community.
The Southampton Cultural Heritage Conservancy welcomes everyone to an evening of stories and discoveries from Southampton homes on October 19th at 7:30 pm, at Duffy’s Fish and Chips in Southampton. Local history buff Jane Kramer, Southampton ghost-walk tour-guide Katherine Leonard, and owner of the historically designated 1853 James Cathay house, John Cameron, will recount their experiences finding interesting historical objects: 19th-century clothing, personal papers, furniture, and children’s toys that were tucked away or mysteriously hidden in the walls or buried in the cellars of Southampton homes.
Following the three featured presenters, members of the audience will be invited to share the open mike, to show and tell about their own discoveries of hidden treasures.
15 August 2019
Bruce County Council Votes Down Motion to Withdraw from Legal Action Regarding Southampton Rectory in Closed Meeting
The Board of the Southampton Cultural Heritage Conservancy is disappointed that the Bruce County Executive Committee, on 15 August, defeated the motion by Janice Jackson (Mayor of South Bruce Peninsula) which sought to “cancel the demolition of the Southampton rectory.” The motion also recommended withdrawing from legal action, and stated that, “considering the Nuclear Innovation Institute (NNI) will no longer be constructed on Rectory lands, the plans and appropriate budget to accommodate archives be revisited.” See Jackson motion:
https://pub-brucecounty.escribemeetings.com/filestream.ashx?DocumentId=5912
SCHC had hoped to see the motion pass, which could have opened discussions with the County regarding preservation measures and respect for the terms and conditions of the restricted Krug Estate Trust, and would have ended a prolonged legal case, funded by Bruce County taxpayers.
Contrary to the norms of Civil Society, Bruce County Council held the entire debate on the motion in closed meeting, despite the fact that portions of the motion would not qualify for such designation under the Municipal Act. The County continues its lack of transparency, as SCHC was forced in July to place a motion before a judge to obtain closed-meeting documents spanning a period of two years, after the County refused disclosure.
SCHC’s counsel will reschedule the Hearing date, as SCHC plans to continue its work to protect the public interest and the rule of law in this case.
14 July 2019
WALKER HOUSE RECOGNIZED WITH AWARD OF EXCELLENCE
The Southampton Cultural Heritage Conservancy is pleased to announce that the Walker House has received the Conservancy’s inaugural Award of Excellence at a ceremony held 13 July 2019. This award was given to the owners, Mary Putnam and Robert Ho, for their vision and commitment shown in the restoration of this iconic heritage building.
As one of the first built structures in the 1850s, the Walker House spans three centuries as a hotel and restaurant. Its recent restoration showcases Southampton’s signature yellow-brick streetscape.
Owned and operated by the Walker family from 1915-2013, its current owners bought the Walker House, in part, to save the restaurant from becoming a franchise in a commercial chain. As Mary Putnam remarked during the ceremony, “there are so many of us who have a personal history and passion for this place, the people, and the Town of Southampton, we couldn’t let that happen.”
It was noted that the quality of life of all of those in Southampton is enriched through an appreciation and awareness of our heritage. According to SCHC director, Sheila Latham, the Walker House is an outstanding example of “keeping our heritage alive while modernizing for the future.” The historic building is representative of our community’s long-standing reputation for hospitality. The Walker House is also a major employer (now employing over 80) in a building that is part of our identity as a town that values and conserves its heritage architecture.
Southampton is also home to the former Anglican Rectory at 254 High Street, that was recently named as One of Canada’s Top 10 Endangered Places by the National Trust for Canada. https://nationaltrustcanada.ca/latest-news-from-the-national-trust/the-national-trust-for-canadas-top-10-endangered-places-list-for-2018
For more information on our organization and activities, please visit our website at https://www.southamptonheritage.org/ or FB at www.facebook.com/southamptonheritage/.
SCHC Mission: The Southampton Cultural Heritage Conservancy seeks to promote, protect and advocate on behalf of the history, cultural heritage, cultural landscape, civil society, and built environment of the town of Southampton and the surrounding area. We recognize and respect that all of this existed pre-contact, and continues to exist through the Saugeen Ojibway Nation, and the Metis who later settled in this area.
P.0. BOX 3036, Southampton, ON NOH 2LO