Lawsuit against City of Windsor adds further controversy on streetcar project | CBC News
Windsor

Lawsuit against City of Windsor adds further controversy on streetcar project

The wrongful dismissal lawsuit by former city engineer Chris Nepszy re-opens the controversy surrounding the Legacy Beacon project on Windsor's riverfront — which is expected to be complete this fall.

Former city engineer alleges he was coerced into 'covering up costs' on "the mayor's pet project"

Lawsuit heaps further controversy on Windsor streetcar project

12 days ago
Duration 2:12
A fired city administrator is saying he was instructed to cover up the true cost of the Legacy Beacon site. It's an accusation that doesn't surprise riverfront activist Mike Cardinal. But Ward 9 Coun. Kieran McKenzie still feels the public will enjoy the amenity - once it's complete.

The wrongful dismissal lawsuit of former City of Windsor engineer Chris Nepszy brings forward more concerns from residents about a controversial capital project to restore a historic streetcar — a project Nepszy's statement of claim describes as a "pet project" of the mayor. 

One opponent of the project says he's not surprised by the allegations, while a City of Windsor councillor who previously opposed the project now says he supports it. 

Chris Nepszy filed a lawsuit last month alleging improprieties at City Hall, including that he was "coerced" into "covering up costs" associated with the riverfront Legacy Beacon project. 

Mike Cardinal led a campaign against the project's location when it was known as the Celestial Beacon in 2020 and 2021.

"There's been significant manipulation, I think, trying to get this thing pushed forward," he said of his experience with the project at the time. "And deaf ears to any other solutions that were there."

The City of Windsor and the office of Mayor Drew Dilkens did not respond to a request for comment. Dilkens has previously denied the allegations in Nepszy's lawsuit and says the city will defend itself. 

The allegations have not been proven in court.

Cardinal pointed to what he describes as "stonewalling" by the mayor's office during Cardinal's own battle with the city, when he successfully argued that the riverfront at the foot of Askin Avenue was not zoned for such a feature.

A building under construction on a riverfront.
The showcase building of the Legacy Beacon project on Windsor's riverfront, meant to house the restored Streetcar No. 351. Under construction in April 2024. (Dalson Chen/CBC)

He continues to question why alternative locations that could have been less expensive — such as on the property of the Chimczuk Museum — weren't considered more seriously.

"I found out that, contrary to what was said at city council, there's a patch of land there (at the museum) which was big enough to fit the streetcar, as well as a good display, at far less cost. And more importantly, far less operating costs," Cardinal said.

"The ears of city hall, particularly the mayor's office, were shuttered on that."

A senior age man wearing glasses speaking via Zoom.
Windsor riverfront activist Michael Cardinal speaks with CBC Windsor via Zoom. (Dalson Chen/CBC)

The restored streetcar and its display location are set to open to the public this fall.

In 2021, when the majority of council voted to move forward on the Legacy Beacon project, Dilkens predicted that it would become "the most well-used destination along our riverfront."

According to Nepszy's statement of claim, Dilkens and the city's Chief Administrative Officer instructed him to "remove internal costs and shift monies" on the project "in order to avoid further scrutiny."

Nepszy further alleges in the statement of claim that when he resisted signing a report on the project's costs, he was told that he was showing he "didn't want to play by (the mayor's) rules" and would be subsequently targeted for dismissal.

A concept drawing for a streetcar in a showcase building.
A concept drawing of the showcase building for restored Streetcar No. 351 on Windsor's riverfront, when the project was known as the Celestial Beacon. (City of Windsor)

The project's price tag has risen since its beginnings in 2017, when the city spent $750,000 to acquire and restore the street car.

In 2020, council approved a showcase location on the riverfront near Askin Avenue for the rehabilitated streetcar — to be known as the Celestial Beacon site, with an estimated cost of $7 million.

Zoning issues and opposition from residents led to the project being moved further east to Legacy Park.

Two people walk by a riverfront construction site.
The Legacy Beacon project on Windsor's riverfront, under construction in April 2024. (Dalson Chen/CBC)

In October 2021, council approved the Legacy Beacon project with a budget of $8.4 million.

But the project went over-budget during the tendering process. In April 2023, council approved "any procurements necessary" for completion. The final cost is expected to exceed $10 million, based on tender amounts presented to council in staff reports.

"This situation caused Mr. Nepszy considerable mental distress," the lawsuit alleges.

According to Nepszy in the statement of claim, a city CAO apologized to him about the issue and said it represented pushing the CAO's own ethics.

Councillor, once in opposition, says the space will be well-used

Ward 9 Coun. Kieran McKenzie said he's had mixed feelings about the project, but he now believes the public will appreciate it as an amenity.

McKenzie voted against the project in October 2021, but supported the budget increase in April 2023.

Last week, McKenzie told CBC Windsor his initial resistance was due to the project representing "a dramatic departure" from the Central Riverfront Implementation Plan, which was developed with community consultation and approval.

"[That site] was supposed to harken back to a pre-development era of the City of Windsor, with a greater focus on naturalization," McKenzie said. 

A bearded man being interviewed via Zoom.
Ward 9 Coun. Kieran McKenzie speaks with CBC Windsor via Zoom. (Dalson Chen/CBC)

But after the majority of council approved the new direction of the project, McKenzie said he now supports it because "it has gone through the appropriate steps to be a funded capital project." 

"I always knew that the Beacon project was going to have a price tag that some folks would express concerns about — including myself," McKenzie said. "I don't take the issue of expenditures on any capital project lightly."

A concept drawing of a riverfront park area.
An illustration of the original concept for the Legacy Beacon site on Windsor's riverfront, before the introduction of the streetcar idea. (City of Windsor)

Regarding Nepszy's allegation of a cost cover-up, McKenzie said he didn't "believe that our administration would act in a way that is unethical."

McKenzie said he has "a high degree of trust and faith" that the information administration brings to council is "truthful, objective, and honest."

Asked if he thinks Nepszy's depiction of a costly mayoral "pet project" reflects public sentiment, McKenzie said such opinions exist on any capital project.

"I recognize that there's some people in the community that have some concerns with this, as people in the community have concerns with literally everything that we do at city council," McKenzie explained.

"The Legacy Beacon, to me, is not much different. It perhaps has gotten a little bit more attention than some others, because we care deeply about our parks."

A concept drawing of a building on a riverfront.
A concept drawing of the completed Legacy Beacon project on Windsor's riverfront. The building is meant to showcase a restored streetcar. (City of Windsor)

Despite the controversies, McKenzie says he doesn't feel the legacy of the Legacy Beacon project has been tarnished.

"I think people are going to enjoy the space... one of the best spaces in the entire community."

But Cardinal says he believes people will move on from the project.

"It'll be a shiny object for a couple of years," he said. "And then people will see fault with it. And they'll move on — just like, unfortunately, they've done with the Riverfront Festival Plaza."

A riverfront construction site.
The Legacy Beacon project under construction on Windsor's riverfront in April 2024. (Dalson Chen/CBC)

Former engineer sues city in wrongful dismissal suit

Nepszy is suing the City of Windsor over his sudden termination as chief engineer and commissioner of infrastructure services in November 2023.

He and former city solicitor Shelby Askin Hager were fired as part of what Dilkens called a "re-alignment" of the City of Windsor's organizational structure.

Profile image of a man in a suit.
Former City of Windsor engineer and commissioner of infrastructure services Chris Nepszy. (LinkedIn)

Nepszy's suit — filed on March 22 — is seeking $1 million in damages and a remuneration package.

Dilkens has dismissed the allegations as "spurious," and said the city will defend itself accordingly.

A building under construction on a riverfront.
The showcase building of the Legacy Beacon project on Windsor's riverfront, meant to house the restored Streetcar No. 351. Under construction in April 2024. (Dalson Chen/CBC)

ABOUT THE AUTHOR

Dalson Chen is a video journalist at CBC Windsor. He is a graduate of the University of Guelph and Ryerson University (Toronto Metropolitan University). His past areas of coverage have included arts, crime, courts, municipal affairs, and human interest. He can be reached via dalson.chen@cbc.ca.

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