Jason Melhoff , the city's current managing director of Invest Medicine Hat has registered as a bidder for the Invest Medicine Hat Contract through his private company Orka Management Group ( City of Medicine Hat/Youtube)

By Tiffany Goodwein

City maintains no conflict of interest in Invest Medicine Hat bidding process

Jul 16, 2021 | 6:15 PM

MEDICINE HAT, AB – Despite a swirl of controversy, the City of Medicine Hat is standing firm that no conflict of interest exists in the bidding process for Invest Medicine Hat.

Earlier this week, the city revealed that Invest Medicine Hat, the department responsible for municipal land sales, and economic development would be going to a private contractor again. It previously went to a private contractor in 2013 under Ryan Jackson. The city is seeking an operator for a 10-year contract with the possibility of renewal for two periods for up to 10 years each.

CHAT News learned that one of the people registered as a bidder is Jason Melhoff, the city’s current managing director of Invest Medicine Hat. Melhoff is listed under the private company Orka Management Group.

A corporate registry search shows the company formed back in February 2021. Melhoff is listed as a director, as is Chris Perret, the city’s current director of land development and real estate. Eric Van Enk, another city staffer is also listed as having a stake in the company.

DEVELOPING

Medicine Hat women's shelter pitches council on supporting critical construction project

5h ago

IN THE COMMUNITY

Health foundation's 'Toybox Tuesday' drive aims to bring comfort to Medicine Hat's pediatric ward

8h ago

CITY HALL

'Taylor Drift', 'Darth Blader' and 'Blizzard Wizard' to hit Medicine Hat streets

12h ago

A website for Orka Management Group lists three Invest Medicine Hat city staffers as partners in the company. Orka Management Group is a registered bidder for the contract to operate Invest Medicine Hat (Orka Management Group)

A website for Orka Management Group shows other members of the Invest Medicine Hat team, including Kelli Ireland, the city’s current marketing specialist, and Jon Sookocheff a current economic recovery officer for the city. The website lists 660 Second Street as its address, the same location Invest Medicine Hat was situated when it was privately operated under Ryan Jackson.

Current city staffers are listed as staff for Orka Management Group, a company formed by current Invest Medicine Hat managing director Jason Melhoff (Orka Management Group)

When asked Tuesday if a conflict of interest exists given Melhoff’s position as a city staffer, city manager Bob Nicolay said the city has a very fair and thorough process and there is “absolutely no conflict.”

City councillor Phil Turnbull shared that view and said the public doesn’t need to be concerned about any conflict of interest in the bidding process.

“There is no conflict of interest. He’s on contract if the company that he has formed doesn’t get the bid then he will just go and do his other business, and what will happen to the other four or five? Well if that contractor has his own people then they will lose their jobs, and that is sort of the way the system works,” Turnbull said.

But some members of the public disagree and argue a conflict of interest is present and the decision shouldn’t happen before the election.

“I was appalled as a citizen and I was outraged,” said Brian Webster, who is also running for city council.

“The city preaches transparency, they want to be transparent and this process has been nothing but not transparent,” Webster said.

Richard Connolly, a city manager who will be involved in the procurement process said the city has measures in place to ensure that no conflicts occur. He said a third-party group, MNP has been brought in to oversee the evaluation process. The third-party group will have a minority stake. Other stakeholders in the evaluation process, according to Connolly include managing director Rochelle Pancoast.

A request for proposals for the new Invest Medicine Hat contractor was issued June 15 and it is scheduled to close this Monday, July 19. Joel McNally is a registered plan taker. He said he will not be placing a bid. McNally said his reason has nothing to do with Melhoff. But he said the bidding process for the particular contract is concerning.

“I don’t think any serious bidder will invest the time and effort required to create a serious bid because of the short timelines involved and because one of the bidders has such an advantage,” McNally said.

Phone calls to Mayor Ted Clugston and Jason Melhoff went unanswered Friday.

The city is expected to award the contract to the new private operator in early September.