EDITOR'S NOTE: Following publication of this article, Flato did send a $5,000 cheque to the Municipality of Grey Highlands for the 2022 sponsorship promise.
A prominent Ontario developer has not paid a significant sponsorship promised to the Municipality of Grey Highlands.
Flato Developments Inc. is a well-known development firm with a number of developments underway or proposed in Grey County, including Dundalk and Owen Sound, and across southern Ontario.
The company’s leadership has connections to Ontario Premier Doug Ford and has been linked to the Greenbelt scandal. In November 2021, company president Shakir Rehmatullah was in Dundalk with Ford for a ceremonial groundbreaking for a proposed new health clinic in that community.
In 2021 and 2022, Flato committed sponsorships of $5,000 each year to the Grey Highlands RAM Rodeo event. The 2022 sponsorship has not been paid. Grey Highlands hosts the RAM Rodeo event as a fundraiser for the Markdale Hospital Foundation. Over the past four years, proceeds from the rodeo have contributed $122,000 to the foundation.
At its council meeting on July 3, a staff report on the rodeo fundraiser held in May noted the missing money from Flato. In 2022, the municipality paid the $5,000 sponsorship to the foundation with taxpayer’s funds. With the money due from Flato still uncollected, the municipality deducted the $5,000 from the 2024 proceeds of the rodeo reducing the total raised at the 2024 event from $40,173 to $35,173.
“Flato Developments sponsored the Grey Highlands RAM Rodeo in 2021 and 2022 in the amount of $5,000 each year. However, despite repeated attempts, the $5,000 sponsorship commitment for 2022 remains unpaid. As such, the Flato Developments sponsorship commitment of $5,000 (that was provided to the hospital foundation in good faith by the municipality, and in anticipation of the payment being received) will need to be deducted from the proceeds of the 2024 Grey Highlands RAM Rodeo,” said Michele Harris, community and economic development director, in her report.
At the July 3 meeting, Grey Highlands held a special ceremony to present the proceeds to the hospital foundation. Several of the rodeo event sponsors were on hand for the presentation.
When receiving the report during the meeting, members of council expressed disappointment that the Flato sponsorship had not been paid.
“It’s unfortunate. We value the support of sponsorships,” said Deputy Mayor Dane Nielsen. “We also value when sponsors fulfil their commitment to the hospital.”
Coun. Joel Loughead repeated the note in the staff report about the missing sponsorship for the benefit of those attending the meeting or watching online.
“I thought that deserved to be read out loud,” said Loughead.
Multiple emails to Flato’s various contact emails were not returned. In addition, the company’s voice mail inbox at the number for its Markham head office was full with no space for additional recordings.
On its website, Flato touts its commitment to giving back to the community and specifically mentions its commitment to Markdale Hospital.
“Flato is building the communities, not just homes. Since the firm’s very beginnings, Flato has always shown a deep-rooted commitment to supporting and giving back to the communities where it builds and operates,” the website states. “Flato also actively supports Markdale Hospital in Grey County, South East Grey Community Health Centre, Headwaters Hospital in Dufferin County, and Stevenson Memorial Hospital in New Tecumseth.”
