CAO of Middlesex Centre settles dispute with Farhi months after council rejected farmland severance

A settlement agreement signed by Middlesex Centre’s Chief Administrative Officer (CAO) has ended a property severance dispute between the rural municipality and Farhi Farm Corporation before an appeal had its first meeting in front of the Ontario Land Tribunal (OLT).

“I don't know how we got here?” said neighbour Sheila Wilson to Middlesex Centre Council on Wednesday evening.

Wilson was perplexed why a decision by council in December not to sever an agricultural property was reversed by an agreement signed by CAO Michael Di Lullo.

On December 20, 2023, council denied an application by Farhi Farm Corporation to sever a residential home and driveway from adjacent farmland near Ilderton because it did not comply with the Provincial Policy Statement nor the Official Plan, and “it would further exacerbate the potential loss of prime agricultural lands.”

Farhi Farm Corporation subsequently appealed council’s decision to the OLT.

On May 3, 2024, Di Lullo signed a settlement with Farhi, on behalf of Middlesex Centre, to formally requesting the OLT agree to the appeal based on an agreement that no residential structures be constructed on the remaining parcel of farmland and utility requirements for the home be constrained to the severed parcel.

Map showing residential property (red) severed from agricultural property (yellow) near Ilderton (Source: Municipality of Middlesex Centre)

So, the OLT changed a case management meeting on May 5, into a settlement meeting.

A planning consultant representing Farhi appeared at that meeting, but “the municipality did not appear.”

Wilson is concerned that the CAO decided to negotiate a settlement so early in the appeal process that grants Farhi the severance without getting direction from council.

“There was going to be a case management conference on May 6, but the minutes of settlement were dated May 3, so my concern is who directed these minutes of settlement?” she asks.

After the council meeting, Di Lullo told CTV News that it was within his delegated authority as CAO of Middlesex Centre to pursue the settlement.

“On behalf of the municipality as the CAO, yes, I have the authority to bind the corporation and the agreement was signed as per legal counsel direction,” he said.

Furthermore, he explained that after the OLT appeal was launched by Farhi Farm Holdings, the lawyer he retained on behalf of the municipality recommended seeking a settlement.

“We take the advice of our legal counsel, and so we follow what they suggest and recommend,” Di Lullo explained. “That's what was put forward before us, and that's what we went ahead with.”

However, the decision not to oppose Farhi’s appeal disappoints Wilson.

“My concern is about farmland, and [it] being fragmented,” she said. “I guess pockets are deep and I don't have enough resources to move this issue forward.”

On Wednesday, council voted unanimously in favour of the severance that was endorsed by the OLT decision.