2022 campaign reports show Kitchener mayor, councillors accepted donations from major development companies

During the 2022 election campaign, Kitchener's mayor and several city council members received significant financial support from employees tied to six prominent development companies - Polocorp Inc, Activa Holdings, Zehr Group, RBJ Schlegel, Auburn Developments, and VanMar Developments.

Now, as proposals from these same companies come before council, elected officials continue to vote on projects without declaring potential conflicts of interest.

Auditor reports from Kitchener's 2022 municipal election - which have since been deleted from the city’s website - reveal significant campaign contributions to local politicians from key development firms.

Mayor Berry Vrbanovic received just under $4,000 in donations from individuals linked to all six developers, receiving the maximum allowed campaign contributions of $1,200 from both Activa and Auburn employees.

Councilors Dave Schneider, Bil Ioannidis, Christine Michaud and Margaret Johnson all received campaign contributions from employees at Activa Holdings during the 2022 election.

Ioannidis also received donations from employees of Polocorp, and Ward 4 Councillor Christine Michaud received contributions from employees of RBJ Schlegal and Auburn Developments.

These donations come as Kitchener sees three active developments by Activa, four by Polocorp and two by Schlegel.

Daniel Henstra, professor of political science at the University of Waterloo, specializes in public policy and local governance. He believes that within municipal governments, there is a general agreement to prioritize development.

“It's well known that local politicians are going to support local development and they're going to want to see land to be developed,” he says. According to Henstra, the push for development comes from financial incentives, namely the increase in property tax revenue municipalities see.

In a written statement, Councillor Dave Schneider emphasized that the origin of contributions to his campaign has no influence on his policy decisions. “I self fund [sic], but with the financial costs of running a campaign, I accept donations. I do not give special favours to anyone who donates to me,” the statement reads.

He noted that when planning matters come before council, decisions are informed by Kitchener’s professional planning staff, who evaluate proposals to ensure they align with Ontario’s Provincial Planning Act.

“They are certified professionals who work with developers to ensure all aspects of the act have been followed and addressed,” Henstra adds.

While both the Planning Act and the City of Kitchener require public hearings before making a decision on a development proposal, Henstra suggests these are often just formalities.

“Development proposals are going to be viewed favorably by both staff and municipal politicians,” he says. “That is their direct interest in order to raise revenue.”

Henstra also suggests that while campaign donations may appear to translate into development approvals, they often are a result of political alignment between candidates and developers. “What these donations are doing is enabling candidates to run a stronger campaign because they probably have said things that are favorable to development anyway,” he explains.

The City of Kitchener uses the definition of a conflict of interest set out in the Ontario Municipal Conflict of Interest Act. Outlined in the city’s Accountability and Transparency Policy, it requires council members to abstain from voting matters if their decision will be affected by personal or financial involvement. The policy also follows the Ontario Municipal Elections Act framework, prohibiting corporations and businesses from donating to election campaigns. However neither the Act or Kitchener’s policy specify rules surrounding donations from high-level employees of influential companies.

ADR Chambers, the body responsible for integrity investigations, declined to comment on whether it would review potential conflicts tied to the donations received by Kitchener council members.

Mayor Berry Vrbanovic, councillors Bil Ioannadis, Christine Michaud and Margaret Johnson did not respond to requests for comment. Representatives from Activa Holdings, Auburn Developments, Polocorp Inc., and RBJ Schlegel did not respond to requests for comment.