Earlier this summer, before he emerged as 鈥淢r. X鈥 in the province鈥檚 Greenbelt scandal, John Mutton to share his insights on the 鈥減sychology鈥 of developers.
The host asked Mutton, a municipal planning consultant, where the most money is made in development.
鈥淚鈥檇 have to say on the rezoning end first,鈥 Mutton says, adding: 鈥淢ost developers that I know don鈥檛 build.鈥
One developer Mutton worked with, for whom the consultant helped secure from the province a special Minister鈥檚 Zoning Order (MZO) meant to accelerate development, recently . Without any significant progress made toward the planned commercial area, developer Sam Ganni was last week asking for $18.9 million for the vacant, 70-acre property 鈥 more than 14 times what he paid for it in 2017.
The listing was after the Star sent Ganni questions, to which he did not respond. It鈥檚 not clear if the land is still for sale. The Ministry of Municipal Affairs and Housing says it鈥檚 鈥減repared to revoke any MZO that does not get shovels in the ground.鈥
MZOs can skyrocket a land鈥檚 value
The Ontario government鈥檚 developer-friendly approach to planning policy has ensnared it in scandal, prompting a beleaguered Premier Doug Ford last week to scrap his controversial Greenbelt land swap.
The 70-acre plot in Cavan Monaghan, just outside of Peterborough, is the latest instance of a developer apparently trying to resell a property after getting a special zoning order intended to fast-track the building of new homes and businesses.
MZOs have proliferated under the Ford government. With the stroke of a pen, developers can bypass lengthy planning processes and see a dramatic increase in the value of their lands. Critics say the seemingly unrestrained issuance of MZOs has allowed those with connections to exploit their access for private gain 鈥 and sparked a cottage industry for consultants or lobbyists able to help them.
The sale listing of the Cavan Monaghan property rekindles concerns that some developers benefitting from the Ford government鈥檚 policies are putting quick profits ahead of their promises to build. It also raises questions about so-called Mr. X鈥檚 influence within Ontario鈥檚 corridors of power.
Mutton has marketed himself to potential clients as a red-tape-cutting conduit to Queen鈥檚 Park and something of an MZO whisperer, uniquely skilled in securing the controversial zoning orders.
The 57-year-old former mayor of Clarington has claimed credit for another MZO in the Peterborough area and helped secure a local council鈥檚 endorsement for a third in Ramara Township that has yet to be granted by the province. None of these properties is in the Greenbelt.
Mutton did not respond to questions from the Star about his role in obtaining the MZOs. , he trumpeted his success in getting Cavan Monaghan鈥檚 council to support an MZO for the 70-acre parcel of land that was recently listed for sale.
鈥淢ZO鈥檚 (sic) are us,鈥 he wrote. 鈥淲e have been successful with multiple MZO鈥檚 in the Province of Ontario. Look no further for your project approval.鈥
Mutton denies he鈥檚 done any lobbying
Integrity Commissioner J. David Wake鈥檚 investigation into former housing minister Steve Clark highlighted how the government鈥檚 disorganized and deceptive process to remove lands from the Greenbelt favoured a small group of developers with access to top officials.
One of the power brokers who also had access was Mutton, although Wake doesn鈥檛 name him in his report because he appeared to be doing unregistered lobbying and could be the subject of a future investigation. Instead, Wake referred to him by the intriguing moniker, 鈥淢r. X.鈥
Mr. X has been identified to the Star as Mutton. Mutton previously told the Star he鈥檚 not a lobbyist and he doesn鈥檛 know who Wake was referring to in his report.
鈥淚鈥檝e never been hired to do anything other than development services,鈥 he said.
According to Wake鈥檚 report, Mr. X had a direct line to Clark鈥檚 office in the months leading up to the province鈥檚 decision to remove lands from the Greenbelt last fall. Wake reviewed emails in which the consultant boasted about courting political staff with invitations to golf and Raptors games.
Wake found the consultant spoke several times about MZOs with Clark鈥檚 former chief of staff, Ryan Amato, and also took Clark鈥檚 deputy chief of staff out for lunch, during which he discussed 鈥渁 couple of MZO files鈥 and gave her a package to give to Amato.
The package included information about land owned by developer Peter Tanenbaum that was among those removed from the Greenbelt.
Wake鈥檚 report notes how Tanenbaum hired Mr. X explicitly to help him get his land rezoned and removed from the Greenbelt, and that Mutton鈥檚 contract included a $1-million bonus if he was successful 鈥 an incentive that violates Ontario鈥檚 lobbying rules.
Mutton鈥檚 posed with Ford, ministers
A gregarious PC party booster, Mutton鈥檚 social media pages are filled with selfies with Tory politicians, and he has been photographed with Ford on at least six occasions.
Asked about Mutton earlier this month, Ford said he takes pictures with 鈥渢housands of people.鈥 A spokesperson for the premier later added that Mutton鈥檚 relationship with the government is like 鈥渁ny other stakeholder or voter.鈥
Among the many selfies Mutton has posted, showing him with current and former PC cabinet ministers, is one with Clark that was .
The former housing minister is flanked by Mutton and Scott McFadden, who was at the time mayor of Cavan Monaghan, where two of Mutton鈥檚 clients, including Ganni, have received MZOs.
A few months before the photo was uploaded, Mutton requesting their endorsement for an MZO, which would rezone Ganni鈥檚 70-acre property from rural to industrial use.
MZO request came 鈥榟alf-baked鈥
The township鈥檚 five-member council was split. Two councillors opposed the motion because of what they said was a dearth of information and due diligence from the developer.
鈥淚 feel like it鈥檚 come half-baked to us,鈥 one said of the proposal, prepared by Mutton and Melanie Horton, another consultant hired by Ganni.
McFadden disagreed, saying there was an urgent need to 鈥渏ump-start鈥 development. He cast the deciding vote in support of endorsing the developer鈥檚 MZO request, which .
McFadden, who did not run for reelection last fall, could not be reached for comment.
Matthew Graham, one of the two councillors who opposed supporting the MZO last year, is now the township鈥檚 mayor. While he thought the developer鈥檚 proposal was lacking when it came to council 鈥 鈥淭his is a few drawings on a piece of paper,鈥 鈥 he said he still hoped the MZO would accelerate development of the property.
With Ganni now apparently looking to sell, Graham said he鈥檚 disappointed and unsure what will happen next. His misgivings about the MZO aside, he never thought the property could be resold before any development was done.
鈥淚 do believe that in the communication to council it was the expressed intention of the owner 鈥 to actually develop the property,鈥 he said.
Unprecedented growth in MZOs under Ford
Minister鈥檚 Zoning Orders used to be exceptional. Prior to Ford taking office they were used roughly once a year. Since 2019 the province has doled out more than a hundred.
A found the 鈥渓ack of transparency鈥 around MZOs under Ford鈥檚 government 鈥 there was no formal process to apply for an MZO and no established criteria upon which the minister granted them 鈥 created 鈥渁ctual or perceived unfairness.鈥
An investigation by the Star and the Hamilton Spectator published earlier that year found almost half of the MZOs for private-sector developments at that time had gone to just four developers 鈥 the Cortellucci family, the De Gasperis family, Fieldgate 91原创s, and Flato Developments 鈥 all of whom, except the Cortellucci family, also had lands removed from the Greenbelt.
A housing ministry spokesperson said the province has used MZOs to 鈥済et critical local projects built,鈥 including affordable housing, health-care facilities and long-term-care homes.
They said MZOs have 鈥減redominantly鈥 been granted at the request of local councils, who still retain control over most of the building process.
Developers sought to resell land
The government has had mixed reactions when properties have been put up for sale after receiving the special zoning orders.
In one case in Oro-Medonte last year, the province , with a housing ministry spokesperson saying MZOs are 鈥渘ot a tool to be leveraged for real-estate speculation.鈥 But the province withdrew when the owner delisted the property.
When the Star discovered last month that a parcel of land in Ajax initially removed from the Greenbelt had been listed for sale by its China-based owner, the province acted quickly to return it to the protected zone.
In yet another case from earlier this summer, a company run by Shakir Rehmatullah, a personal friend of Ford, sold a chunk of land for what appears to be a significant profit after receiving an MZO to build 鈥渄esperately needed new homes.鈥 The province has not revoked the MZO in this case. Lawyers鈥 for Rehmatullah鈥檚 development firm say his company still retains ownership of the lands and will be involved in the construction of hundreds of homes.
NDP municipal affairs critic Jeff Burch said the Ford government has created a 鈥渢wo-tiered鈥 system for granting MZOs where 鈥渨ealthy insiders鈥 get preferential treatment.
鈥淗e鈥檚 using MZOs not as a tool to build housing, but as a gift for land speculators.鈥
Graham, Cavan Monaghan鈥檚 mayor, said developers shouldn鈥檛 be allowed to resell properties after receiving an MZO, with rare exceptions. But he was torn about whether the province should revoke the MZO in his community.
鈥淚f the present owner doesn鈥檛 intend to move forward and sells the property to someone who will, then revoking the MZO might simply delay the intended outcome even further.鈥
In the meantime there are growing concerns about the other project for which Mutton helped to secure an MZO 鈥 a major redevelopment of Kawartha Downs 鈥 which Graham said he hoped would be 鈥渇urther along鈥 by now. Council passed a motion earlier this week asking the developer for an update.
Without referring directly to Mutton, Graham said any claim to MZO expertise is just a 鈥渕arketing tactic鈥 because 鈥渁t the end of the day, councils are responsible for their decision to support or not support what comes before them.鈥
But he added that municipalities across the province are desperate to help their communities, whether through housing or economic development.
鈥淲hen a proponent asks you to support and potentially expedite them bringing that to your community through a tool like an MZO, that has no direct cost to the municipality, it puts councillors in a very difficult position to say no.鈥