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Varennes Mayor Faced Conflict of Interest in Daughter’s $500K Land Deal

The mayor of Varennes, Martin Damphousse, became involved in a land resale project within his own city that resulted in a half-million-dollar profit for his daughter, with his name even appearing on a permit application addressed to his administration.

When approached in late January in his office, the mayor acknowledged placing himself in a situation of apparent conflict of interest. A week later, he called to state he was retracting those comments and no longer believed he had committed an ethical breach.

An investigative team conducted a months-long investigation following reports from Varennes citizens.

Those citizens were concerned by the sudden purchase of an elderly Varennes resident’s home by the mayor’s daughter, Marie-Charlotte Damphousse, and her spouse, in October 2020.

Notably, the property was not publicly listed for sale.

A month later, following a closed-door decision by the municipal council, a street was created adjacent to the land. This allowed Ms. Damphousse to submit an application to the city to divide her property, something previously impossible.

She then resold the two parcels for a profit of nearly $500,000.

Nearly $500,000 in Profits

Marie-Charlotte Damphousse and her spouse purchased the property from Mr. Dalpé, on Marie-Victorin Street in Varennes, for $365,000 in October 2020. After obtaining permission from the City to divide the land into two lots, they resold one portion to the developer of the future neighboring real estate complex for $250,000 and the other portion to Marie-Charlotte Damphousse’s brother for $612,500.

The Mayor’s Involvement

Mayor Damphousse, who chaired the Union of Quebec Municipalities (UMQ) from 2023 to 2025, admits to being involved in the matter. He concedes that he connected his daughter with Jacques Dalpé, a long-time owner of the house on Marie-Victorin Street.

“It was a private sale,” the mayor confirms.

He claims Mr. Dalpé confided in him that he was willing to sell because his wife was ill. This claim could not be independently verified, as Mr. Dalpé has since moved to a seniors’ residence and his sons did not respond to requests for comment.

Mayor Damphousse vehemently denies transmitting privileged information to his daughter. However, he acknowledges not informing Mr. Dalpé that the value of his property would soon increase, as the city was about to create a street nearby.

“I had no idea of the details and timelines,” says the mayor of Varennes.

A “Service” for His Daughter

The mayor’s name even appeared on one of the documents of the permit application submitted by his daughter to the City of Varennes to split her new land.

On this point, Mayor Damphousse insists he was simply “doing a service” for his daughter. He maintains he is not in a conflict of interest, even though his name appears on a request that must be approved by one of his officials.

The mayor says he does not recall personally delivering the permit application to city employees. He swears, however, that it did not receive preferential treatment from his administration and would not have been authorized if it had been non-compliant. “That’s for sure not,” insists Mayor Damphousse. Marie-Charlotte Damphousse declined to be interviewed.

A New Street Providing Access to a Real Estate Project

The City of Varennes launched a call for proposals in 2017 to create a 200- to 250-unit residential complex on the site of its former municipal workshops.

According to the mayor, Mr. Dalpé knew that a project would eventually develop in that area, located near his residence. Varennes, he recalls, even purchased a portion of Mr. Dalpé’s land in August 2020 with the intention of eventually creating the street leading to this complex.

“The residential development project in the back was known and understood… (For) anyone who is a little alert and looking for land or houses,” says the mayor.

However, when questioned, the City of Varennes indicated that the final project had not been completed and had therefore never been officially presented to the public.

Only consultations on a zoning change necessary for the project took place in 2015 and 2022.

The Mayor Should Not Be Involved in Real Estate in His City

Mayor Damphousse should never have been involved in this real estate project, according to experts in municipal politics.

“There are too many appearances of a conflict of interest here. It raises the question of the credibility of the transaction and its effects for someone who is in the family circle of a member of the municipal council, namely the mayor.”

Rémy Trudel, guest professor at ENAP and former Minister of Municipal Affairs

“It is not a recommended practice for the mayor to interfere in private transactions,” believes Danielle Pilette, a professor in the Department of Strategy, Social Responsibility and Environment at UQAM.

“Even if it hadn’t concerned his daughter, it would have raised questions of conflict of interest. A mayor must act as much as possible in the benefit of the entire municipality, even if it means depriving himself of certain advantages,” says Professor Pilette.

“When there is any transaction operated by the Municipality, and which closely or remotely involves one of the members of the municipal council or his family, one must withdraw from all discussions around this project, not just the final decision,” adds Mr. Trudel.

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