July 19, 2010 | 

A.S.H Management Group Inc. has been providing property management services to its clients on projects located in Manitoba since 1991. It is the property manager of Univillage co-op building at 99 Dalhousie Drive in Winnipeg, Manitoba. The previous owner of the property was a Non Profit Holding Company whose membership consisted of intergovernmental and University of Manitoba representatives and stakeholders.

Univillage co-op has never owned its building. Univillage co-op was established after a lease was originally signed in the 1970's with the previous owner(s) of 99 Dalhousie Drive. By leasing of the property Univillage co-op was registered with the Province of Manitoba and formed as a governing body for the housing co-op. When the lease expired on the property; a new lease was resigned between the previous owner and Univillage co-op that is to expire on August 31, 2010. No new lease has been signed with A.S.H Management Group Inc. since the acquisition of the building by 99 Dalhousie Drive Inc. 99 Dalhousie Drive Inc., a private for-profit company with 15-20 shareholders and private investors, hired A.S.H Management Group Inc. to manage the property in 2008.

December 2008 - Univillage co-op hires legal counsel of two to three lawyers to investigate the sale by the previous owner of 99 Dalhousie Drive. Legal counsel findings indicates no legal complications for the sale of 99 Dalhousie Drive based on possibly incomplete information that was provided to the lawyers.

May 19. 2009 – University Board of Govenors Meeting

“Mrs. McCallum informed the Board of a donation of $6.9 million towards the new student residence building from the College Housing Holdings Inc. Board. The College Housing Holdings Inc. Board had decided it was in the best interest to sell the apartment at 99 Dalhousie Drive and found a vendor who is willing to continue to operate it as cooperative housing. Mrs. McCallum, who has been the chair of the Board for the past nine years, noted that the Board has student representation and that Mr. Dhalla sat on the Board as well. As a result of the sale, assets became available and the College Housing Holdings Board decided unanimously to donate the proceeds to the University.” ( May 19, 2009 Board of Govenors Meeting - http://www.umanitoba.ca/admin/governance/media/bogminmay2009open.pdf) 

May 27, 2009 - A.S.H Management Group Inc. submits a letter of offer to the Univillage co-op board to renew the lease for 99 Dalhousie Drive.

November 21, 2009 - A.S.H Management Group Inc. submits a letter to the Univillage co-op board to advise of the termination of the lease and to re-negotiate a new lease.

December 18, 2009 - A.S.H Management Group Inc. submits a letter to the Univillage co-op board to advise of the termination of the lease and to re-negotiate a new lease.

January 9, 2010 - Univillage co-op AGM with A.S.H Management Group Inc. in attendance. Many students/residents unaware of the termination the lease and request for re-negotiation of a new lease.

February 4, 2010 - A.S.H Management Group Inc. submits a letter to the Univillage co-op board to advise of the termination of the lease and to re-negotiate a new lease.

April 26, 2010 - A.S.H Management Group Inc. submits a final letter to the Univillage co-op board to advise of the termination of the lease vacation notice for August 31, 2010. Offer of new lease is no longer valid.

May 14, 2010 - Nick Martin of the the Winnipeg Free Press published an article titled “Students given notice to vacate after refusing 45% rent increase”.

June 23, 2010 - The UMGSA Executive is made aware of Univillage co-op rent increases by resident students and asked to intervene in finding resolution to the problem.

July 7, 2010 - Univillage co-op membership invites the Province of Manitoba and A.S.H Management Group Inc. to attend a Univillage co-op board meeting. Univillage co-op board members disallow the Province of Manitoba and A.S.H Management Group Inc. to attend the meeting.

July 15, 2010 - Univillage co-op seeks legal counsel from a third lawyer.

Over the course of twelve months, the Univillage co-op board held its monthly board meetings to discuss the lease with the owner of the building. A.S.H Management Group Inc. was in attendance at these meetings. No decisions were made whereby A.S.H Management Group Inc. and Univillage co-op could agree. According to some observers of the Univillage co-op board meetings, other internal issues superseded the lease discussion.

The Univillage co-op board may have failed to inform its membership regarding the termination of the current lease and the re-negotiation of a new lease. It is the opinion of the investigator that the membership of the Univillage co-op was made aware of the lease situation at the Univillage co-op Annual General Meeting on January 9, 2010.

It is the investigator's impression that previous legal counsel found not legal grounds to pursue legal action regarding the business transaction of the property owner and Univillage co-op. Univillage co-op has currently hired legal counsel regarding this matter and the role of UMGSA would be limited and would not be providing legal advice between an external property owner, the Univillage co-op and the Province of Manitoba.

It is the investigator's impression that the conditions of the sale of the property by a non-profit hold company to a for-profit corporation are unclear and appears to be lacking transparency for the affected stakeholders. A more deep and forensic investigation needs to be conducted to unravel the involvement of the University of Manitoba Administration and its relationship to the property holders including but not limited to The College Housing Holdings Inc., A.S.H Management Group Inc., and 99 Dalhousie Drive Inc.

It is the investigator's impression that the University of Manitoba has been unclear in its involvement with the property at 99 Dalhousie Drive.

Regarding the dissolving of the Univillage co-op, the Province of Manitoba Cooperatives Act allows for the dissolution of the co-op if the lease is terminated and the co-op ceases to have a property for it to manage.

It is also the investigator's impression that the Univillage co-op Board may have been dysfunctional and ineffective in communicating and negotiating a new lease with its stakeholders. Good governance according to the Province of Manitoba includes five key points in reference to a cooperative:

1 - Determinate power, roles, responsibilities and respect of areas of competence

2 - Transparency and communication

3 - Democratic and/or participative management

4 - Leadership of director and members

5 - Education and training

Based on the findings of the investigator, certain elements of good governance may have been lacking that may have limited the co-op's ability to act and react to this circumstance.

The UMGSA, although sensitive to and concerned with the events of Univillage that directly impacts University of Manitoba Graduate Students, is unable to resolve the issue. Univillage co-op has hired legal counsel regarding this matter and the UMGSA encourages the students and residents of Univillage co-op to pursue the options provided by the legal counsel of the Univillage co-op board.