It appears Peter McCallion will be able to get the city his mother leads to fully cover his legal bills in a judicial inquiry into a land deal that involved him.

Justice Douglas Cunningham said Monday that a review of Peter McCallion’s finances, including a private cross-examination of his affidavit by inquiry lawyers, has revealed he doesn’t have the cash flow to retain a lawyer.

“I am persuaded he requires the funding,” Cunningham said, adding that McCallion is central to the inquiry examining a controversial deal for land near Mississauga City Hall.

McCallion appealed for more funding after Mississauga council voted to pay cap reimbursement for his legal fees at $100,000.

The judge said the matters to be discussed relate to a complicated business relationship involving McCallion’s reputation and business interests. He said having unrepresented parties to the inquiry could lead to excessive delays and cost overruns.

Commission lawyer Will McDowell said he hoped city council would approve Cunningham’s recommendation. “I’m afraid of the inquiry being derailed,” he told councillors.

McCallion’s submission to the inquiry states that he earns $50,000 to $60,000 a year selling houses for De Zen Homes in Mississauga. Despite being involved in real estate for decades, he said he owns no property and turned over the title of his own house to partially pay off a debt. He hasn’t filed an income tax return for several years and “is not aware of how much he owes Revenue Canada,” the document says. It indicates he owed $12,500 in taxes as of 2005.

McCallion’s lawyers propose having one lawyer present throughout the inquiry, expected to last 40 days at a maximum of 10 hours per day day. Two lawyers, charging $275 to $350 per hour, would assist him while he is testifying. The firm says it is willing to negotiate a cap on billing.

The inquiry, expected to cost $2.5 million, is now expected to go over budget. It is looking into the conduct of city business in a failed sale agreement for a $14.4 million, 3.5-hectare parcel of land owned by the OMERS pension fund, which involved Peter McCallion and a company called World Class Developments.

Court documents described the participation of Mayor Hazel McCallion — who had declared a conflict of interest, according to council minutes — in at least two private meetings on the deal while the status of the land was before council.

The inquiry is also looking into a decade-old agreement that gave OMERS, a minority shareholder in Enersource, a veto on certain decisions that councillors said they were not aware of when they voted on the deal. It is not expected to be a major part of the inquiry.

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