Out-of-town landlord blames homelessness, drugs for derelict properties

Members of city council in Sault Ste. Marie recently used a rezoning application from CPM Properties director Mathew Moxness to tee off on the much-maligned real estate investor who owns and manages a number of “deplorable” rental properties locally. 

While Allard SSM Inc. and Moxness had their application approved — paving the way for a five-storey, 47-unit apartment complex on the former Red Cross property at 105 Allard St. — it was apparent from Monday’s council meeting that members had little to no interest in doing so. 

“I don’t think we have the jurisdiction to deny this application — in fact, I’m sure we don’t have the jurisdiction, based on the responses I’ve seen from the legal department this weekend to deny this application based on other failures to comply with bylaws by this applicant,” said Sault Mayor Matthew Shoemaker.   

Although the mayor explicitly advised council against it, Ward 2 Coun. Luke Dufour felt “a significant need to say something about the character of the applicant, and the character of other properties that they own in this city,” given the fact that during his five years on council he has led a charge to “resource our legal and bylaw department in order to effect the kinds of changes that we need in Sault Ste. Marie to have safe and quality affordable housing."

“Over that time, there have been several companies that have been perpetual and repeat offenders to not just property standards, but to a standard of care that each and every one of us would expect from any living dwelling in our country,” Dufour said. “At every point in this process, I have come to realize that the level of provincial jurisdiction that is provided to municipalities to enforce these bylaws is very little.

“We have precious little authority in order to effect the kind of changes that our community expects of us when it comes to property standards, and so it’s in this context where we do have a jurisdiction and a say over land use planning that I feel the need to examine character in some fashion.” 

City solicitor Karen Fields warned that denying Moxness’ rezoning application could be appealed on the basis of not being fair and open-minded, or being biased, towards the applicant. An appeal would lead to an Ontario Land tribunal hearing, Fields added, which could take up resources at city hall in order to prepare for and attend. “If there are cases based on bad faith, you might invite the tribunal to send a message to council” through “cost consequences,” Fields said. 

When asked by Dufour if he “had anything to say for himself,” Moxness downplayed his track record as a real estate investor in the Sault, while seemingly bashing the city for the neighbourhoods both he and a relative believed to be his father, Nels Moxness — director of at least 25 numbered companies that own 129 properties locally — chose to acquire real estate in.    

“I think we’re somewhat being bundled in a group of people — I know you mentioned Italo Ferrari earlier, an individual that I don’t know. I know that there’s other trouble that’s been happening in general in the market that has nothing to do with myself or the people I’m associated with,” said Moxness. “In general, it may appear a certain way, but we do mean well in general in town. 

“We’ve taken on certain challenges, and I don’t think anybody can deny that certain areas in town have challenges in terms of homelessness, drugs and other issues — and that’s really all I’ll say.” 

Ward 5 Coun. Corey Gardi immediately took issue with those remarks, accusing Moxness of passing the buck by saying “there are a lot of bad things going on in a number of neighbourhoods in our community.”  

“We want people who mean well specifically,” Gardi told Moxness. “I think it’s important that we embrace developers and development who are committed to remedying the concerns you kind of flippantly brought forward a few seconds ago. We have some challenges that many people in our community are trying to overcome. We’re doing it collectively, and we need partners in good faith who are willing to pursue that with us.”

Moxness, in turn, doubled down on his previous comment by telling council that some of his properties are in areas with challenges — and that downtown is one of them.

“What they were before we took over were far worse than they are now, and there’s some cases where that takes time — like in the downtown area, where we’ve been getting broken into every night,” Moxness said. “We have our local contractors and staff that attend every day. We may board a property up, we may try to renovate inside. But then the next thing you know, it’s been completely run over overnight.”

The charred remains of 267 Huron Street may have been one of those vacant, derelict properties Moxness was alluding to during Monday’s council meeting. The modest, two-storey house just south of the railroad tracks was the scene of a fatal fire this past December that claimed the lives of two people who were reportedly squatting inside at the time. Ontario’s Office of the Fire Marshal has confirmed the incident remains under investigation. 

According to land registry records, 13756327 Canada Inc. — a numbered company directed by Nels Moxness — acquired the property for $128,000 in March 2022. A $103,000 mortgage was then taken out on the property the same day. 

The numbered company allegedly failed to comply with two separate orders from the city concerning building code infractions at 267 Huron Street and 365 North Street. Both matters are being heard in provincial offences court March 26, according to information provided by the City of Sault Ste. Marie. SooToday has been advised to file a Freedom of Information (FOI) request or attend court next week if it wants to know the nature of the alleged infractions. 

Moxness heard Monday that besides all the problems with rundown properties associated with both CPM Properties and the Moxness family, there have been concerns from tenants about the quality of life in the spaces they’re renting. 

While Ward 3 Coun. Angela Caputo said she could empathize with Moxness over repeated break-ins to vacant properties, she has also fielded complaints from CPM Properties tenants regarding bed bugs and rental properties without heat in the city.       

“That’s unacceptable,” Caputo told Moxness. "If we have to approve this rezoning on principle, then that’s fine — but I really think you need to take a look at what’s happening in these properties in Sault Ste. Marie.”