MLHU goes to court Monday over proposed Citi Plaza site

The Middlesex-London Health Unit (MLHU) is heading to court Monday in an application that could decidethe status of its proposed new headquarters at CitiPlaza.

At issue is whether or not the health unit needs consent from its two municipalities, the City of London and the County of Middlesex, to lease the space.

MLHUsays it does not; MiddlesexCounty says it does.

Health Unit

According to the province's Health Promotion and Protection Act, aboard of health does need consent from a majority of its municipal boards to 'acquire and hold real property.'

"The issue here is whether the words 'acquire and hold real property' include a lease interest" such as the one being proposed at Citi Plaza, said John McNair, the lawyer representing the health unit.

Also in question is whether the County shouldbe allowed to withhold consent for the proposed new lease, given that the health unit's current headquarters are in a MiddlesexCounty building.

As a landlord, the county collects 'in excess of $600,000 annually' from rent at 50 King St., and has a direct, conflicting interest in keeping the health unit on as a tenant, according to McNair's factum.

McNair says time is running out. The health unit's letter of intent with CitiPlaza ownerI. F. Propco Holdingsexpires May 14.

"The owners of CitiPlaza simply can't wait forever to decide who's going into those premises," said McNair."There are practical and economic reasons why we need to get this resolved."

MiddlesexCounty

County lawyer WayneMeaghersaidthe idea that the county is worried about losing revenue is 'completely false.'

"They own real estate in a prime location in the city of London," said Meagher."They're not concerned about renters."

Instead, Meagher said the county's main concerns are:

• That the health unit didn't do a good job of answering county members' questions about the cost of the move and the impact on services.
• That the health unit signed a letter of intent with Propcobefore getting consent from the county.

"Essentially that's signing first and not studying the county," said Meagher.

County council says the court application is unnecessary, and that the lease issue could have been easily resolved through discussion, Meagher said.

"The health unit's using the courts to disenfranchise an entire council," he said.

Farhi Holdings Corporation

Although the application won't go before a judge until Monday, one London real estate developer is already betting big on the assumption that the health unit will lose.

Farhi Holdings Corporation (FHC) issued a press release Friday afternoon announcing a proposal for a 'London Wellness Hub.'

In it, FHCoffers up London's Market Tower as a possible location for both the health unit's headquarters and a supervised consumption site.

AlthoughFHC owner Shmuel Farhihas'conducted outreach' to the board of health, spokesperson Patrick Sackville told CBCthat 'so far there has been no response from the board.'

"We are aware that they are having an ongoing conversation that looks to conclude likely at the beginning of next week with the county," said Sackville.

"The anticipation is that the board of health is going to lose that decision."

When CBCasked the MLHU about Monday's court proceedings, chief medical officer of healthChris Mackiesaid, "It would be highly inappropriate for us to comment on a proposal to move MLHU offices to Market Tower when we are in the midst of both an RFP process and a related legal case."