York University acted appropriately in its sale of campus land to a new home builder, a retired judge has found.

Edward Saunders, retained by York to review the land sale, says he found no conflict of interest in the sale and no problem with the university's decision not to list the property on the open market.

"The process was appropriate and there were no improprieties or conflicts in relation to the sale," Saunders writes in his report, which was presented to York's board of governors yesterday.

In a news release, York president Lorna Marsden said she was pleased with the result.

"We were confident that the university had acted appropriately in the sale of these lands."

The site at issue is the south portion of York's campus at Keele and Steeles Aves.

It was sold by York to Tribute Communities in 2004 for $15.8 million. Star stories in February suggested that York might have earned much more if it had been sold on the open market.

Tribute is now developing a range of new homes on 35.3 acres, and the university has contributed seven acres of land for roads and a storm pond. Saunders states that the total price of the land was $450,000 per acre. That works out to a net cash return to York of $320,000 per acre after other land deal expenses are considered. Other real estate experts and documents cited by the Star, looking at the total parcel involved in the development, calculate the land was sold for $374,648 per acre.

The Saunders report details York's work to plan the community and figure the financial returns from the land sale. Saunders interviewed 19 people and reviewed seven written submissions, including one from Tribute and one from the board of governors. In the opening of his report, he writes: "Generally, I have accepted at face value what I have been told."

He notes that York University Development Corporation told consultants in 2000 that it hoped to make up to $100 million from sale of the land, far less than what York is earning from the Tribute deal. The first parcel was sold for $15.8 million, and a second parcel for roughly double that amount.

He notes that exposing properties to the market can yield higher returns, though he does not criticize York, which offered the land to Tribute and two others by way of a letter. Tribute, Saunders found, had done significant preparation for its bid in the years before the sale; the other bidders were given a 38-day time frame to bid.

He said the university did well on the sale, given its stated priority to develop a low-rise community rather than potentially more lucrative high-rises.

However, he notes the university's own master planner was critical of Tribute's plan to develop houses. Saunders states that the planner, now retired, wanted higher density and suggested the university would do better to lease the land than sell it for a one-time gain.

On the allegation of conflict, Saunders' report goes into it in some detail. He absolves the university and Joseph Sorbara - who is volunteer chair of the York University Development Corporation, which handled the sale - saying that they did nothing wrong.

Sorbara was part of the negotiating team for York on the land sale and, as earlier reported by the Star, he was and is in partnership with Tribute on other housing deals outside of the university.

Saunders states that while Sorbara was in business with Tribute - and negotiating on behalf of the university - it was not a conflict. Saunders notes that while Sorbara told the York University Development Corporation in 1996 that he had an interest in the Tribute company, he has no recollection of telling the university's board of governors, where he was an honorary governor with no voting rights.

"Strictly speaking, there was no conflict of interest," said Saunders, though he writes "it might be thought that this is a too narrow view of the situation."

Saunders notes that the Sorbara Group, the development company run by Sorbara's family, has a "significant interest in a number of Tribute projects and Sorbara has a personal relationship with its principals." He suggests that this has to be put in context. He says it is not uncommon for GTA builders to be in partnership.

Saunders said he found from his interviews that Sorbara "took a strong negotiating position" on the university's behalf. He says he came across nothing to suggest that York was "not loyally served by Joseph Sorbara." Saunders notes that, upon reflection, Sorbara told him that there was another building company, Mattamy Homes, that should have been asked to bid.

"I am very pleased that the Hon. Edward Saunders has given York's governance practices a clean bill of health and that the RFP process in particular was considered appropriate," York board chair Marshall Cohen said in a statement yesterday. "The board of governors was and remains fully satisfied that the university got full value from the sale of the land, given the restrictions the university placed on it."

"I am also very happy that Mr. Sorbara was cleared of any conflict of interest." After the Star published its story earlier this year, students and faculty at York protested, saying the university was wrong to sell the land without an open competition.

About 50 students angrily protested at a board of governors meeting. Saunders, in his report, rules that York "is not a public institution in the sense that it is accountable to the public for what it does." Instead, Saunders said York is accountable to its board of governors, although it "does perform a public service and receives substantial funds from government."

"We note with interest that there is nothing in the Saunders report contradicting the key facts reported by the Star about this land transaction," said Star editor-in-chief Giles Gherson.

"In fact, in some cases, the review amplifies points made by the Star. Judge Saunders says that there is no legal requirement for York to hold an open and competitive bidding process when selling land, while our story raised questions as to whether an institution that receives significant public funding should have done so."

The provincial auditor should be called in to scrutinize a land deal at York University that may have cost the cash-strapped school millions of dollars, says Howard Hampton, leader of Ontario's NDP.

A Toronto Star investigation published yesterday examined a $15.8 million sale of York University-owned land to Tribute Communities. It showed a top university volunteer who has also been a close business associate of the developer helped broker the untendered deal.

"When you look at the details that have been unearthed here, this looks like a situation where the public interest has been sacrificed to private interests," Hampton said. "I would say just looking at it, there is a possible conflict of interest, and a possible breach of the public trust."

Hampton said he will demand the auditor's investigation in the Legislature.

The Star story outlined the deal this way:

Joseph Sorbara, chairman of York University's land development agency, which handled the sale, championed Tribute Communities as the best builder for the job. Sorbara was also a key member of York's negotiating team when the campus land was sold to Tribute. The land may have been sold for much less than it was worth.

Howard Sokolowski is the developer. His successful firm, Tribute Communities, is now building 550 homes on the York campus, with hundreds more in the planning stage.

Sorbara, who is also a land developer, has been in business with Tribute in other major construction projects and has investments in two Tribute companies.

Sorbara is the brother of Ontario's finance minister Greg Sorbara, who has placed his holdings in blind management and resigned as director of The Sorbara Group companies.

York University and Joseph Sorbara say everything on the sale was done properly.

In two letters to the Star, Sorbara said that he received no benefit from the deal and "any allegations of impropriety are untrue, offensive and totally without foundation."

York, also in a written statement, said finding the best developer - not the best price - was its goal. The school wanted a home builder with a track record for "socially sensitive" developments and Tribute fit the bill. York president Lorna Marsden and chairman Marshall Cohen refused numerous interview requests, as did Sorbara.

As to the appearance of conflict of interest, York said it was aware of Sorbara's business ties to Tribute and found it "helpful" to have him in negotiations. York says Sorbara received no benefit from the deal.

Sokolowski, in an interview, said the project will be "sophisticated and first class." He said it's clear he and Sorbara have a business relationship, but that had no influence on the deal.

But the Star story has left others with pressing questions.

York University professors, students and alumni are also calling for an independent investigation. Some students will picket the university's board of governors' meeting, scheduled for tomorrow afternoon.

"I am calling upon them to immediately address this urgent matter and find who is accountable for this botched deal," said economics professor Ricardo Grinspun.

"We need an independent investigation of the facts around the deal and I think that the board of governors needs to take measures to make sure that those responsible for this ... maybe they should resign."

Some students are angered, saying the extra money is badly needed. "We have some corporate leaders who seem to view the university as a place to get public money," said Matthew Hayes, a York graduate student.

"This is clear demonstration that the corporate interests have undermined the public interests and academic interests of the university."