Leaked recording sheds new light on old conflict of interest issue

A Port Moody city councillor attempted to intercede in a legal matter between the municipality and a developer despite her conflict of interest, a recently unearthed recording shows.

While serving as Port Moody city councillor in 2021, Zoe Royer was accused of a “serious breach of professional ethics” by a fellow councillor.

Originally reported by Bob Mackin at The Breaker, the issue centred around a legal dispute regarding a drainage issue around the 3000-block of Henry Street involving the city and Creekside Investments. Creekside Investments was a client of CityState, a consultancy company founded by Royer’s husband Gaetan Royer.

Asked about the issue at the time, Royer acknowledged her conflict but stated she thought there was still a procedure to speak to council on the matter.

“I did not know this when I spoke to the mayor,” Royer wrote to the Dispatch in 2021. “[The mayor] asked me to explain the issue and convince him that it was worth putting on the agenda. My error in judgment was to answer his questions, and for that I am sorry.”

The recording of Royer’s conversation with the mayor was posted to social media on April 17 by a user who stated they were motivated to release the audio after Royer was announced as a candidate in the upcoming federal election.

An anonymous source confirmed the authenticity of the recording.

The initial section of the 30-minute conversation between Royer and then-mayor Rob Vagramov seems to corroborate Royer’s version of events. Royer appeared to be under the impression she could discuss the issue with council.

Prior to her presentation, Royer referred to a recent council decision allowing councillors to: “share an issue, even if a councillor themselves was in conflict.”

“I don’t think there’s been any progress on that,” Vagramov said, noting staff had looked into the issue.

“I thought there was, because it was like so important,” Royer replied.

Royer proceeded with her presentation, contending the legal dispute could be solved and the drainage issue could be remedied through a proposal involving Creekside and neighbouring owner Aultrust development company.

“The city won’t meet with Aultrust, even though they’re proposing something that is significantly better for the environment,” Royer said. “They won’t meet with them because this is in a legal proceeding.”

Royer explained the nature of her conflict of interest.

“Creekside Investments contacted CityState to work with them to better understand this issue and that’s why I can’t, even though I understand the issue, I can’t even bring it up and that’s just so unfair,” Royer said. “The City of Port Moody won’t even come to the table. They’d rather the lawyers duke it out.”

Describing the issue as a costly embarrassment to the city, Royer likened the city’s legal representative to “a dog with a bone.”

The city’s lawyer, “needs to stop this fight,” Royer told Vagramov.

Royer’s request would directly benefit a client of CityState, Vagramov noted.

“The issues that makes me the most uncomfortable in all this is of course the conflict issue,” he told Royer.

Royer acknowledged being in a conflict of interest but said she was under the impression there was still some mechanism by which she could speak to council.

“There is no process for this,” Vagramov confirmed. “I probably wouldn’t touch it with a 20-foot pole but, if you want to bring it forward, I would do it probably through a letter.”

Vagramov suggested the letter could be vetted by the city’s legal department to find out if there is a process where Royer could speak to council.

“You wouldn’t consider meeting with these people would you?” Royer asked Vagramov.

“I’m not going to be going against a council decision to not meet with them,” Vagramov replied. “The short answer is absolutely not.”

The city’s legal department won’t hurry, Royer said.

“This is like a hamster wheel to legal,” she said.

Asked about the “awkwardness of having an active lawsuit,” Royer said she understood, but that action needed to be taken.

 “We need to stop this insanity because sometimes, sometimes, lawyers are actually obstructionist.”

Royer did not respond to a request for comment.

Bayrock Terrace

In 2021, city council approved a 173-unit development earmarked for four properties on the 3000-block of Henry Street.

The properties, which were jointly owned by the 3000 Henry Street Limited Partnership and its general manager, Aultrust Financial, were ordered into receivership in 2024 after defaulting on its loans.

Recording meetings

Asked about recording closed-door meetings, Port Moody city Manager Anna Mathewson explained the city did not have a policy.

“If someone recorded a conversation between the then-mayor and then-councillor, that is a matter between those parties and does not involve the city,” Mathewson stated.