Didn't see anything wrong with division's action
Winnipeg Free Press
Wed May 4 2005
By Mia Rabson
EDUCATION Minister Peter Bjornson admitted yesterday he knew Seven Oaks School Division was getting into the business of land development a year ago and didn't see anything wrong with it.
On Monday, Bjornson denied he had any previous knowledge of the division's activities with Swinford Park development, a new subdivision in Riverbend. He told the Free Press following question period on Monday he had just then been advised about the situation after he was asked about it by Tory education critic Myrna Driedger.
But yesterday, Bjornson acknowledged he had received a letter in May 2004 from a private citizen who was concerned about how much money the division was spending on contractors to develop the land in Riverbend. The allegations were investigated, and Bjornson said yesterday he was told by the Public Schools Finance Board the division's actions were not inconsistent with the Public Schools Act.
Since then, however, the department flagged the issue again and asked for a legal opinion on the matter. That opinion, Bjornson said, was that school divisions are not allowed under the law to be in the business of developing land for anything but building a school. As a result, Bjornson has now asked the department to spend the next month reviewing everything that happened to determine what went wrong and why.
$2 million
From 2002 to 2005, Seven Oaks School Division spent almost $2 million on contractors, legal fees, excavators, paving, fencing and other construction to get the land parcels in Swinford park ready to be sold to home builders. The division had acquired almost nine hectares of land for about $350,000 to build a school. It was later determined that only four hectares were needed for the school. The division sold the extra land for $2.7 million. All of its dealings with contractors and the land development were carefully documented in board minutes, and Superintendent Brian O'Leary says the Public Schools Finance Board was aware of and approved the division's actions "every step of the way."
The board has since told the division not to develop land for residential properties again.
Bjornson said he didn't lie about knowing anything about the development.
"I was aware of some allegations," he said. "You asked if I was aware of the development."
However, the allegations made to him in May 2004 specifically referred to the development.
"I am concerned that the Seven Oaks School Division is acting as the developer," the letter says. ". . .they are paying rather large sums of money to contractors for installation of roads, sewers and all other necessities required to build the community."