Strategic Holdings to pay $20K in fines as environmental charges against owner dropped
Heavy equipment was used to 'disturb and reshape' land near a watercourse, court told
A judge has ordered Summerside development company Strategic Holdings Inc. to pay $20,000 in fines after the company entered two guilty pleas on environment charges.
Company president and sole shareholder Nathan Kember and his lawyer appeared in court Friday morning and entered the two guilty pleas.
The Crown then withdrew two other environmental charges against the company, as well as the seven environmental charges that had been laid against Kember himself.
The guilty pleas were for altering or disturbing the ground within 15 metres of a watercourse or wetland boundary, and operating heavy machinery in that same area without the proper permits.
The court heard these violations happened on a 40-acre parcel of land at 674 Water St. East in Summerside, where Strategic Holdings is building an apartment complex and driving range.
The property had been historically used for agriculture and has watercourses and wetlands on it, including portions that back onto Summerside Harbour, so it falls under regulations outlined in P.E.I.'s Environmental Protection Act.
No permits to do work
According to an agreed statement of facts read in court Friday, Kember was in touch with the Department of Environment, Energy and Climate Action, which oversees the act, in July of 2024 about his intentions to carry out ground work on his property.
"During the development process of the land, heavy equipment was used to disturb and reshape the land. [The company] was at all material times responsible for the disturbance of any ground materials during the construction and reshaping of the land," the document reads.
"Neither Mr. Kember nor [the company] had a valid license or permit to allow heavy equipment to enter within 15 metres of a wetland or watercourse boundary or to disturb any ground within 15 metres of a wetland or watercourse boundary on the land."
If you're going to be in the development business … it's up to you to know what the rules are. In these facts before me ... ignorance is no excuse.— Judge Krista MacKay
The court heard that department staff went to the site in August and discovered that the heavy equipment had been used in that area, and told Kember it was a violation.
In October, the minister signed a ministerial order ordering the remediation of the land.
Days later, staff who went back to the site noted that there was heavy equipment on the site and the land had been further altered.
The next day, staff returned along with a private tow truck operator and seized a dozer from the site. Kember is also facing criminal charges for events that occurred on that day.
The court heard the dozer will now be returned to the company.
Most remediation work has been done
Both the Crown, Chad McQuaid, and Kember's lawyer, Jordan Brown, told Judge Krista MacKay they believed Strategic Holdings should be fined $10,000 for each violation. That's the minimum penalty outlined in the act.
Kember did not speak in court on Friday. Brown spoke on his behalf, highlighting the work his client is doing to provide housing in the community, with a focus on energy-efficient and green developments.
He added that Kember, 32, was born and raised in Summerside, where his family has "significant" connections, and that members of the community and his church were there to support him in court.
"Mr Kember, if you're going to be in the development business … it's up to you to know what the rules are. In these facts before me ... ignorance is no excuse," MacKay told the company's president.
The judge ultimately accepted the joint recommendation of a $20,000 fine.
MacKay went on to tell Kember that she believes the work he is doing to add housing stock to the community is positive, particularly during a housing shortage.
But she also told him if he wants to build green, sustainable communities as he says, he needs to respect environmental laws, particularly when those tasked with enforcing the laws bring issues to his attention.
At this point, Kember tried to interject, but the judge stopped him.
"This is not a debate for you and I," she said. "This is my decision."
The court heard that Kember has completed much of the work required by the terms of the ministerial order last fall, save for one piece — hiring a professional to map out the wetlands and their boundaries on the property. That can occur only between June and September.
"Certainly Mr. Kember has committed that whatever needs to be done will be done," his lawyer told the court, adding that the order has outlined what repercussions he will face if the work isn't completed.
Criminal charges back in court
The criminal charges against Kember were not dealt with Friday, but were adjourned to next month.
The court heard the intention is to divert the matter to alternative measures, a process outside of the judicial system that allows first-time offenders to reflect on their actions and make amends without incurring a criminal record.
Offenders usually sign an agreement to participate in the program through probation services, and the case periodically returns before a judge for an update on its progress.
If the offender completes the steps outlined in the agreement, the charges are stayed. If not, the matter comes back before the courts.
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