Toronto councillor received 11% of donations from donors tied to developer

Some residents in Toronto's Moss Park neighbourhood are raising questions about their city councillor's possible ties to a prominent real estate developer.

A review of Coun. Chris Moise's financial disclosures from the 2022 municipal election reveals that at least $10,800 out of $91,695.25 campaign contributions came from the CEO of Fitzrovia Real Estate, one of the CEO's family members, and a small group of senior leaders at the company none of whom lived in Moise's ward, Toronto Centre.

Some residents believe the donations create a conflict of interest or at least the appearance of it after Moise recently supported a Fitzrovia project.

Coordinated donations from wealthy business executives is a common practice across the country, says Duff Conacher, co-founder of Democracy Watch. While such individual donations are perfectly legal, he says they're a troubling practice.

Fitzrovia CEO Adrian Rocca said in an email that donations from employees "were made in a strictly personal capacity, using their personal funds." Chris Moise says his decisions and priorities as a city councillor have not been influenced by any donations he has received.

Some residents concerned over apartment towers

The development in question is a plan for two new apartment towers at Sherbourne and Shuter streets. The 43-storey buildings will go up next to two existing apartment buildings at 191-201 Sherbourne St., towering 20 storeys above the existing buildings and neighbouring residential streets.

In July, city council approved planning and zoning by-law amendments to make way for the project.

When Serguei Zernov first learned about the proposal last year, he thought it was "outrageous," expecting it would have no chance of being approved without major changes.

"This project from the architectural point of view is an abomination. It doesn't fit the environment," said Zernov, who lives with his partner in a Victorian house on neighbouring Seaton Street.

Zernov has a number of concerns with the project, including shadows and impacts to wind and traffic.

Others have raised concerns about how high-end rentals could contribute to increasing rents overall in the area, further displacing vulnerable people.

"I agree rental as opposed to all condos is a valuable thing, but it's one level of rental, it's higher income-level rental," said Pat Perkel, who has rented at 191 Shebourne St. for more than a decade.

As part of its agreement with the city, Fitzrovia has committed to not applying for above-guideline rent increases that could have resulted from improvements it is making to the existing apartment buildings.

Moise says the development will contribute to a mix of housing in a "challenging" area, and help meet housing needs for people working nearby at Toronto Metropolitan University and St. Michael's Hospital.

Perkel and Zernov were among several residents who voiced concerns about the project at a Toronto and East York Community Council meeting in July. Both said they left feeling their concerns were not taken into consideration, which Zernov said was "in stark contrast" with discussion about other projects considered at the meeting.

They worry Moise who chaired the meeting may be politically influenced by Fitzrovia.

"It just doesn't look right," said Zernov.

Significant campaign donations from Fitzrovia employees

Corporate and union donations have been banned in Toronto elections since 2009, and across the province since 2016. But company leaders and their employees can and do make personal donations to candidates.

Duff Conacher of Democracy Watch is calling for individual donations to be drastically lowered, in order to lessen the potential influence of big money in election campaigns.

"It's well- known across Canada that a lot of municipal council candidates are funded by property developers," Conacher said.

In 2022, 154 people made donations of $100 or more to Moise's campaign. Eight of them including CEO Adrian Rocca were senior employees at Fitzrovia at the time, and each made the maximum allowable contribution of $1,200. One of Rocca's household members also made a maximum contribution. Altogether those donations total $10,800.

Two other individuals with the last name Rocca, who live in Brampton, and several others with business connections to Fitzrovia also made maximum contributions.

WATCH |Residents raise concerns over city councillor's ties to prominent developer:

Donors tied to Toronto developer helped finance city councillor's election campaign

24 days ago

Duration 3:47

Corporate donations are banned in Ontario's municipal elections, but nothing stops corporate leaders from making personal donations. Some critics say donation rules should change, to reduce corporate influence on elections.

Conacher says bans on corporate donations have "obscured" corporate influence on elections, rather than stopping it.

"Now, instead of seeing one company's name as the donor, it's a bunch of people who may not be related and have different last names and you have to research them all to tie them back to that company or organization," Conacher said.

Moise says the donations have not had any bearing on his work as city councillor.

"I can't speak to their intention," Moise said of the Fitzrovia employees who contributed to his campaign.

"I can only speak to myself and where I stand in these things. But I am not influenced by anyone."

Rocca, Fitzrovia's CEO, says he believes in "being active in civic politics", and that he follows all rules and requirements when making donations.

"I back municipal leaders who can bring real solutions to the table, build relationships and collaborate, and get things done at City Hall. Chris Moise is doing just that", Rocca said in an email to CBC Toronto.

He added that no Fitzrovia employees were reimbursed in any way for their donations.

Moise says about 700 people donated to his 2022 election campaign including those who donated less than $100, and who are therefore not required to have their names listed.

"Some of them are people who work for unions, who work for developers, who work at the hospital, you name it, right? And so I don't go down the list and see who works for whom and where they work," Moise said.

Calls for changes to donation limits

Conacher, however, argues it's difficult for politicians not to be influenced on some level by donations no matter how much they may say and believe they will remain impartial.

"Essentially they're saying, 'I'm not human,'" Conacher said.

"The most effective way to influence someone's decisions is to give them a gift or do them a favour. And a donation is a gift, so it does have influence."

Conacher advocates for lowering donation limits to about $75, which would be in line with what Democracy Watch has determined the average person can afford to donate. He says lowering the limit would make it much harder for corporate interests to influence elections, since far more people would need to be involved to reach a similar total donation amount, rather than a small group of executives.

He points to Quebec, which has capped both provincial and municipal political contributions to $100 annually, plus an additional $100 during an election year.

CBC Toronto asked Ontario Municipal Affairs and Housing Minister Paul Calandra's office if the province is considering making any changes to donation limits.

Press secretary Bianca Meta said in an email the ministry "reviews the municipal election process following each municipal election to ensure it continues to meet the needs of Ontario communities."