Mayor Bob Chiarelli is a director of a company which owes the City of Ottawa almost $127,000 in unpaid property taxes, provincial and municipal documents show.

Cedarhill Golf Enterprises Inc. -- of which the mayor's brothers Richard and Patrick are president and secretary treasurer respectively -- owes the city $81,895 from 2003 and $44,975 from 2002.

The company had operated the Cedarhill Golf and Country Club just north of Barrhaven, which is being sold to 2032788 Ont. Inc.

That deal was supposed to close on Nov. 15, but has been held up because the numbered company is having trouble with financing, the purchaser's lawyer Thomas Taggart said yesterday. The numbered company now operates the golf course and has agreed to pay the outstanding taxes when it takes full possession of the club.

Mr. Taggart said the mayor is not personally obligated to pay the taxes, but he acknowledged that, at present, the company of which he is a director is.

"A reasonable man would say they didn't pay them because they couldn't pay them," Mr. Taggart said. "I can assure you that (Cedarhill Golf Enterprises) would pay them if they could.

"They are not in such financial shape that they could pay their property taxes," Mr. Taggart said.

The mayor had a "low-profile involvement" in the company, Mr. Taggart said. "The mayor doesn't call the shots."

John Piazza, lawyer for Cedarhill Golf Enterprises, emphasized that the numbered company is required through the deal to pay the outstanding property taxes once the agreement is completed.

Richard Chiarelli is the man handling the sale for the company and the mayor had little to do with the transaction, Mr. Piazza said.

The Citizen was unable to reach Richard Chiarelli at his business, Chiarelli Engineering. The mayor is on vacation in the Dominican Republic and couldn't be reached for comment.

"Trust me (the taxes) have nothing to do with us," Mr. Piazza said. "We are waiting for a technical closing."

Bob Williamson, manager of the golf course for the numbered company, said negotiations began on the property in August and he hopes the deal will be completed within the next 45 days.

The new owner fully expects to pay the taxes in arrears.

"Oh certainly yes," Mr. Williamson said.

Mr. Taggart said part of the reason tax payments were withheld by Cedarhill Golf Enterprises was because the deal was likely to include the new owner covering them.

The ownership structure of Cedarhill Golf Enterprises and the numbered company is unknown.

City solicitor Jerry Bellomo said that under the Ontario Municipal Conflict of Interest Act there are no blind trusts for mayors or councillors.

However, they must declare any interest in an issue to be discussed and, Mr. Bellomo said, if they have an interest, must refrain from debate or influencing the issue both inside and outside the council chamber.

There is no specific reference in the act to mayors or councillors or interests with which they are associated paying their taxes, the city solicitor said.

However, "there may be a situation where they would have to declare an interest on tax arrears," Mr. Bellomo said. In that case, a municipal elected official might have to choose not to participate in discussion of new tax programs, he added.

Last June, the mayor said the city should get out of the golf business and put its interest in the popular Pineview course in Ottawa's east end on the auction block.

At the time, the mayor planned to ask staff to look at the club's operation and discover how much the sale of the city's lease with the National Capital Commission on the profitable operation would fetch on the open market.

"If it is making money, it will bring a higher price," the mayor said at the time. Pineview Golf Club draws about 70,000 patrons a year and earns between $200,000 and $300,000 a season.

The Cedarhill area, just north of Fallowfield Road and west of Cedarview Road, has a long history with the Chiarellis.

Chiarelli family members bought a 200-acre piece of land there near their asphalt paving business on Cedarview Road in trust for the clan.

The family planned to build a golf course surrounded by estates -- a concept they imported from the U.S.

In 1974, brothers Patrick, Richard and Bob plus five Ottawa businessmen set up Cedpar Properties to develop the land. It took six years to get all the necessary approvals.

Eventually the golf course was built and some of the most luxurious homes in the city appeared around it.

The city is owed about $53 million in unpaid taxes on 17,500 properties.

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What Ottawa could buy with $127,000

The city is owed nearly $127,000 in back taxes by a company under the directorship of Mayor Bob Chiarelli. Here, from the city's own website, are a few things the city could buy with that money:

•  1 ambulance: $114,000
•  1 soccer field: $80,000 to $100,000
•  1 km of sidewalk: $120,000
•  1 traffic light: $80,000 to $120,000
•  3 police cars: $102,000
•  1,000 library books: $100,000