KPMG on the payroll as Ontario city prepares for potential purchase of historic waterfront

The price of the City of Pickering’s long-running quest to get Frenchman’s Bay in public hands is expected to rise more than $360,000 Monday without any guarantee a deal to acquire the lands around – and under – the bay will ever be reached.

City staff is recommending council approve the hiring of KPMG for consulting and professional services to help prepare the city should “anticipated” funding from the federal and provincial governments arrive to acquire 34 valuable acres around the foot of Liverpool Road, as well as 133 acres IN the bay itself, in public hands.

The city has been rejected twice in trying to buy the bay by Harold Hough and his East Shore Marina, who have owned the waters of the bay since he bought the Pickering Harbour Company – and with it a Queen’s Charter signed in 1853 by Queen Victoria – more than 60 years ago.

Pickering Councillor Maurice Brenner said there is an agreement in place to purchase the bay and the city is just waiting to hear back from Ottawa and from Queen’s Park.

“We have a warm and fuzzy feeling from the province and we’re continuing our discussions with the federal government but they’ve been very supportive,” Brenner said. “We’re still optimistic.”

Pickering Mayor Kevin Ashe remains hopeful as well.

“I ask your government to work with the city of Pickering and provincial counterparts to establish a tri-party funding agreement for the acquisition of Frenchman’s Bay in Pickering,” Ashe said in his letter to newly-elected Prime Minister Mark Carney last fall. “Securing this vital natural asset will ensure it is returned to the public domain and permanently safeguarded from unwanted development.”

Frenchman’s Bay

The properties were put on the market in 2023 with an initial price tag of $60 million for the lands (and waters) zoned residential at 600 Liverpool and $20 million for a commercial property at 591 Liverpool Road that housed a boat storage/maintenance and marine services business.

Pickering offered $30 million to buy all lands and water rights owned by Pickering Harbour Company. That proposal was rejected. The city then proposed to buy only the waters of the bay and a portion of the eastern spit lands. That proposal was rejected as well.

It is the city’s desire to move the lands from the hands of developers – who could, in theory, propose a floating home development on the waters of the bay, not unlike the Friday Harbour townhouse development on Lake Simcoe – and into public ownership for all residents to enjoy.

The price for the new offer remains confidential but the $10 million set aside in the 2025 budget and the “anticipated” addition of $10 million each from the provincial and federal governments hints that the city’s proposal hasn’t changed much from the initial offer.

Brenner said KPMG will be doing the due diligence on the lands and waters of the bay, with environmental concerns at the top of the list.

“They’ll do some drilling to look for contamination. We need to see if there any issues in the bay.”

With several marine-related commercial businesses on the bay, KPMG is also expected to do a financial analysis and provide some advice on what to do with the bay should the deal go through, with a marina a possibility.

The $361,756.80 (net HST rebate) deal for KPMG’s services will come from the Rate Stabilization Reserve.

What the Queen’s Charter signed in 1853 by Queen Victoria means to any possible sale will also be looked at, Brenner added, as the charter is not transferrable.

Getting Frenchman’s Bay in public hands is the real goal, he said. “This could be a real game changer.”