Recommendations from City of Powell River staff about development corporations provided that unmistakable feeling of déjà vu all over again.
The city first established Powell River Waterfront Development Corporation in 2003 to allow it to participate in developing Powell River’s waterfront. The corporation was dormant, however, until 2006 when the city entered into a partnership with Tla’amin (Sliammon) First Nation and Catalyst Paper Corporation to take ownership of surplus Catalyst lands. There was intense and widespread community concern about the project, known as the joint venture, and the appearance of conflict of interest for elected officials who sat on the corporation’s board.
Recently, the city established a second development corporation in partnership with Tla’amin, called Powell River Power Development Corporation, to pursue developing a hydroelectric run-of-river project on Freda Creek. Staff have recommended appointing elected officials to the boards of both corporations.
Corporate directors and municipal councillors have different obligations. A corporate director is required to “act honestly and in good faith with a view to the best interests of the company.” A municipal councillor is required to “consider the well-being and interests of the municipality and its community.”
The best interests of the corporation are not necessarily the same as the best interests of the municipality. When a councillor sits as a director on a municipal corporation board, which “master” does he or she serve?
For the city, the divergence of interests is apparent because it only partially owns the development corporations. It has duties and responsibilities to Tla’amin, its partner.
The Community Charter clearly defines what elected officials must do when they are in a conflict of interest. Elected officials who are directors of development corporations will not be able to give the public full representation when they are duty-bound to have the best interest of the corporation in mind when making decisions. How will members of the public trust elected officials, when they have dual roles and competing interests? Will those elected officials be fulfilling their duties to the public if they have to leave the room when important decisions about the development corporations are being made at the council level?
All of these questions, and more, were raised over six years ago, until the decision was made that all elected officials would resign from development corporation boards. Council should consider all of the ramifications, including the community’s history, before the vote on staff’s recommendation.
