At Gary's request, after over thirty years working together, we had separated our business interests, dividing our lucrative contracts evenly. The combined potential for annual gross income, pushing towards half a million bucks.
Gary brought an older Ford three quarter ton 4 by 4 complete with plow for Rutledge Landscaping and I brought a ten year old half ton G.M.C. with no plow, for my business. I planned to hook on the 8ft. 6In. plow that survived the tsunami.
Traditionally most commercial plow trucks are three quarter ton 4 by 4, with plows 7ft to 8ft. Gary was justified in doubting my small half ton could push an 8 ft. 6" plow, saying as soon as I start plowing it will overheat. But I have done a lot more plowing and had a few tricks up my sleeve.
But my more immediate concern, was securing accommodation. Renting with a big dog, in Toronto, was almost impossible, but I would live on the street before giving up my dog. So buying was the only option.
One of my contracts, which I had been more personally involved with for over 25 years was with a property management company. The property manager and I shared a strong respectful relationship. She was aware of our recent dilemma and awarded me a construction contract that would be mutually beneficial to myself and the Company she represented.
On the basis of this I put an offer on a bungalow for sale in Scarborough. But the time line was very finite.
Real Estate sales in N.America are more tightly secured than in the U.K. The purchaser has to give a substantial deposit with the offer, with a firm date to close the deal. If he fails to close the deal, he loses the deposit and can be liable for other damages.
The bungalow I was attempting to purchase was the result of a marriage break up and not occupied. With the extremely wet season we experienced, the basement kept flooding thereby discouraging buyers. The price kept reducing and was now down about $40,000.00 from comparable properties, around the $100,000.00 mark. I noticed the grade was off at the back of the property, causing the flooding, a relatively easy thing for me to fix.
But as the closing date approached, I could see I was not going to collect from the construction job in time to have the funds. So I offered to rent the property, for a $1,000.00 week on condition the closing date was put forward for one month. While this was way too much for renting a flooded property, it clinched the deal, effectively increasing the purchase price by a few thousand but giving me somewhere to live in the meantime.
I completed the landscape construction job and the property manager fast tracked the payment cheque, which I certified for immediate availability, bringing the funds in on the last possible day.
That evening I met up with Son and we enjoyed a celebratory glass of wine, in the almost empty living room of MY bungalow.
I then moved into the basement and advertised the main floor, as a two bedroom apartment.
My first tenants where a young couple. They paid their rent on time but argued a lot, often quite loudly and with the help of flying missiles.
They would have company on the weekends and started using the back yard for barbecues. When my requests for them to clean up their empty beer bottles, failed to remedy the problem, I barred them from the back yard.
As Winter approached, I knew this one was going to be a challenge. Especially after Gary came to me and asked if I could service his contracts also. He wanted to dedicate his time to developing a career in Real Estate and I always felt he would do very well in that field, being very personable.
If I where scheduling sub contractors to plow the contracts we now both held, I would allocate 4 trucks. Now I was faced with pulling off this endeavour, on my own, with Gary's truck as a back up if mine broke down. I also needed to address salting, which is carried out after every plowing.
Linda had agreed to do our quotes and invoices at her home, via fax. I gave her the computer to use for this purpose. Her husband Al held a D License and agreed to drive the dump truck for me, full of salt, but he had limited mobility, which precluded him from operating the salt controls. He was to follow me around the route, then when I finished plowing a lot, I would climb in the dump, salt the lot, then back into my pick up to the next property, with Al right behind in the dump truck.
I hired a kid on call, to shovel the walkways. So let it snow.
Over the past several years I had refined my plowing techniques to the point where I rarely engaged 4 wheel drive. During the late 80s when I was supervising all the plow trucks, while driving the Thunderbird, I was often very frustrated at how long it took some of the sub contractors to complete their work and became very aware of where much of the time was being lost. They where all spending too much time, stopping and turning and reversing, which was contrary to the techniques I used.
Every time you stop the truck, it takes much more power to build up the speed again from a standing start, with a plow full of snow. While you are rolling along, little power is required as the rolling weight of the trucks provided most of the power. This is called MOMENTUM and became my ally, removing the need for 4 wheel drive, except in extreme cases. This is why I knew I could push an oversize plow with a half ton truck.
Plow operators would argue with me, that they have to stop, at the end of the parking lot and reverse back to the beginning. Not so, with the technique I developed, which I called "Circle Plowing" you would plan your passes in such a way that the truck would rarely stop. A large rectangular lot, can be circle plowed from the center out to the perimeters, with only the first run up the middle requiring a stop and turn.
I would combine the front parking lot of a building, with the back, circling the building. or combine two adjacent lots and plow as one, as in a figure of eight. With this technique, the average plowing speed is greatly increased, as you rarely slow down.
The first snow fall of the Millennium was a heavy one, so we where quickly put to the test. But it soon became apparent, I was over extended. Not only was I trying to do the work load of four trucks, I was also losing time having to jump into the salt truck and help out with some walkways.
As a result, we lost two large contracts, one from my business and one from Gary's. Gary was not at all happy, but perhaps did not fully understand the severity of our situation.
After this attrition, I was more able to manage the remaining work, now only taking on the normal work load of three trucks, but which was still a huge stretch.. With a typical snow fall, I often amazed myself, at how quickly I would burn through the properties, using the circle plowing technique.
At the end of the first year, I handed to Gary a full accounting of expenses (with receipts) incurred in performing his contracts, but I did not expect him to be able to pay me the $60,000.00 any time soon, as it would take him some time to build up his real estate business. My figures where not questioned.
As the cheques from his contracts went straight to Rutledge Landscape, at least they had that money to live on and cover their mortgage etc. I did not include in this accounting, any charge for my time for plowing etc of which I performed 100% on his properties the first Winter. If I had, at $60.00 per hour (The standard rate) the amount would be much higher. I did tabulate for gas used, but these details where to become irrelevant anyway.
I would draft the invoices monthly, showing salting and removal charges and fax them to Linda, who would type them up, with a Rutledge Landscape Invoice for Gary's and East Diversified Landscaping for mine. She would fax them back to me and after checking, I would hand deliver them.
With capitol now to work with, I could hire some help. No more plowing 36 hrs straight, with only fuel and toilet stops.
Fortunately my tenants decided to move on, so I needed to advertise again. I received a call from a guy, who was having trouble finding an apartment as he had two dogs. He called the right person. He also caught my attention, when he mentioned he had been at his present place 10 years, but now they where selling.
When we met, he rolled up on a big motorcycle and looked kind of rough. He didn't have his wife with him, saying she would be happy with whatever he decided (which proved to be the case). Michael and Marilyn. He was on Workman's Compensation, with back trouble, but indicated he would be interested in doing some part time work. He said he had done a tour in the Vietnam War (That maybe is why he did not like Son)
I had plans to build in the rear of the property, tripling the square footage of the living area and setting up apartments to supplement my retirement income, plus space for my equipment. I was now able to hire an architect and apply for planning permits. I used the same architect we had used for Gwillimbury Grange, as I like to work with the same people. I was into $7,000.00 before starting any construction.
I brought in a back hoe ( J.C.B. in U.K.) to dig the trenches for the footings. Gary dropped by with the boys and they had a great time running all around the trenches.
The second Winter, Michael started working for me, plowing with Gary's Ford Truck. I would have him tighten up the corners and he had a helper with him, so they would clear the walkways. I secured three more contracts for my route, one being a good size apartment building with row houses surrounding i
At the end of the second year, I again presented Gary with an accounting of expenses I had incurred for contracts performance on his accounts. This year it was $56.000.00 The cheques for his accounts continued to go directly to him.
But meantime Gary became very ill with cancer. This was to be a game changer.
How easily we over rate it's value, until over shadowed by other events.
Over the next couple of years, I did not bother to report expenses to Gary, as it was becoming obvious I would likely not be repaid.
I was just pleased to be able to help my dear friend and his family.
In any event, I was confident with my plowing revelations and business experience I would be able to continue to pull in this great income, for many more years to come.
I brought in concrete blocks and started building the basement walls. Pushing myself I managed to lay 100 blocks in one day, even with mixing my own mortar, so completed the block laying in two weeks.
Meantime the landscaping and snow service rolled along. The following Summer I brought in lumber, windows and doors and started the above grade construction, paying everything with cash. Michael helped when we was able, along with a friend of his, that was now staying with him.
I hired a young guy from a nearby "Half way house" who was trying to integrate back into the work force. Another Michael, but we called him Mike. I brought a Jeep Cherokee, so I could drive on my own and the two Mikes would use the jeep. That way when plowing I would not be held up waiting for them to finish walkways or whatever. Gary's truck some nights would not start as it was parked on site at one of Gary's accounts, out in the cold weather.
During the growing season I would take my commercial mower weekly to the Rutledge home, to mow their grass, as they had a very large back yard. It was great to see the boys developing. Grant was enjoying the thrills of skateboarding and set up a ramp.
Gary had 6 long stilts (6" by 6") installed under some trees, with the intention of building a tree house. So I started going up with Mike and collected a bunch of materials from the Aurora Home Depot, to put together a tree house for the boys.
I wish I had taken some pictures, it was so cute. Two separate rooms, with little windows, ridge roof, balcony along the front with railings and stairs to the ground. I believe Gary had some hassles over building permits later, but no doubt resolved the issue.
Gary went through a terrible ordeal with the cancer. He had to have severe radiation treatment all around his neck. To go on the machine a special helmet was custom made, to protect areas not being treated. Life for all of us, revolved around this awful challenge for quite some time. I would visit him daily at the hospital and when he eventually returned home.
Out on the street Son was still up to his tricks. He never did anything real bad, just a lot of stupid little things like jumping the turn styles in the sub way to avoid paying or emptying the coins out of pay phones and newspaper boxes, drug possession, etc etc. After years of warnings from the courts, they finally issued a deportation deposition and he was confined to the West Detention Jail.
I had to come up with $2,000.00 cash bail, pending appeal but more inconvenient was having to drive him out to the West End once a month, for mandatory reporting. The other condition of his bail was that he had to live with me, which he was more or less doing anyway.
Some time later I attended a deportation hearing and argued the case before the judge that "Son was the victim here, having slipped through the cracks of the social safety net" We got an extension for him to stay until 2012, which was subsequently extended for his life time, declaring him a non patriarch. So Canada you are stuck with him.
While this one cost me $2,000 to keep in Canada the next one cost me $2,000. to leave Canada.(Temporarily)
I got a call from Gary's wife Rihana, to ask if I could lend her $2,000.00 to go to England for a course on Art Therapy. I agreed but did not discuss a repayment schedule. I called Anne, who kindly agreed to meet her at the airport in the U.K. and point her in the right direction.
The new construction is connected to the original bungalow with a 12 ft wide addition, which is an extension of the high roof section seen here.
The building is now 107 ft in length from this rear wall to the front of the bungalow, same length as Gwillimbury Grange.
The central connecting section, comprises one apartment, which I finished first and moved into, freeing up the basement for rental.
It was my intention to stucco all the new and the original building for conformity. Then the design makes sense.
Bags of salt are on the raised bench ready to toss into the pick up. Loader can just be seen, bottom left.
Entrance to central apartment is at the rear and side of the loader.
The dormer window above is bathroom with hot tub and walk out to the side.
The next setback was to curtail my prowess with the plow and change the direction of my life.
While pushing one of the small lawn mowers we use for small areas on an A.T.I. property (One of 3 A.T.I. properties on Gary's books) I developed chest pains. My doctor ordered tests and then an angiogram. This was followed by angioplasty, to insert a stent in an artery. I was placed on a regimen of medications, one of which was Plavix (A blood thinner) But this is expensive so was changed after awhile to less expensive Aspirin.
10 days later I suffered my first heart attack.I was taken to Toronto East Hospital where I stayed for a week. Michael kindly took in my dog. On discharge I was told not to work for three months, but the snow waits for no man. First day out I don,t need to say what the weather did.
But I was forced to re examine my objectives. The service accounts needed to be reduced and I was going to need contractors to help finish my construction.
I also hired a snow plow sub contractor Daryn Rambarren. He had worked for us for nine years in Markham and just purchased a good Dodge Plow Truck, with an 8ft. plow.
With my earning potential now considerably reduced, effecting the disposable income available for construction, I obtained a second mortgage from a Chinese lady in Toronto and brought in plumbing, electrical and heating people. The plumber I did a barter landscape deal, to cover his labour, so just paid for fixtures.
Gary meantime was in recovery and started to work on his real Estate business. But this would of course take some time to build up to a level where he could cover all their expenses.
Although I was trying to take it easier, less than a year after my first heart attack, the second came. Now being an expert on these matters I knew what was happening. I was driving on Steelecase Rd in Markham and stopped and walked to the front of the truck.
After a couple of minutes I knew what I had to do. No time to wait for an ambulance. I started driving down to the North York hospital as I phoned 911 (999 in U.K.) I was put through to police dispatch, who stayed on line, cleared me for red lights and a No Left Turn, until I pulled into the hospital lot. I called Michael to come pick up the truck along with Becky.
As they wheeled me into the hospital I passed out. When I came round they told me my heart had stopped and they had to restart it with a defibrillator.
.I had noticed for some time Gary & Rihana did not seem to be getting along too well. One evening things blew up and Rihana threatened to leave and take the boys. Not a good idea. Gary loves those boys so much, would be easier to snatch a couple of cubs from a lioness.
He threatened her with violence if she tried. Also not a good idea. She threatened to call the police. Gary dialed the number for her. A terrible idea. He gets hauled off in handcuffs. I drove up to Aurora as soon as she called me, but not much I could do that night, being midnight.
Next morning the judge granted bail, but Gary was supposed to to stay with me, and needed a dated note from me, giving my permission if he leaves my side. We had to bend this one a little to make it work, but after completing "Anger management classes" he was off the hook, but with a record.
Then he tells me Rihana has brought a new car for $12,000.00 paying cash. Looking back now I would have to question financial priorities here, given the huge amount of money owed to me by Rutledge Landscaping. At the time I was becoming oblivious to all this stuff, but now as I recall and write about everything I feel quite upset. Worse is yet to come, hope I can keep these keys clicking through it.
Previous to this, early in Summer 2005 I set up a meeting with my mortgage broker friend Arnold Molder. My first mortgage was due for renewal in a few months and I wanted to set up a new larger first that would buy out the second plus give me some construction cash, to complete the project.
He was also the mortgage broker for Gary and Rihana, and knowing our involvement, tells me they are in major default on the mortgage on their Aurora home. This is because I had to cut back on my help to them after my problems and Gary had not yet generated sufficient income to service the account.
Arnold has a board meeting in couple of days at which a direction will be given to commence Foreclosure and eviction proceedings. This has to be avoided.
We put together a deal where Arnold puts a $30,000.00 mortgage on my property. Instead of using this money for construction (which would have allowed me to complete my project in 3 months), I give the cash to the Rutledge account, which puts them in good standing, allowing them to secure their position. On completion of this the mortgage company would then give the Rutledge account an extension of funds and then they would be prepared to fund my construction loan.
When my first comes up for renewal in three months, with this loan I will have completed the work and the appraisal will easily qualify for sufficient equity to consolidate the debt into a low interest, long term mortgage. This will bring all the apartments on stream and secure a consistent income for my retirement.
Next day I meet with Gary & Rihana. She has concerns, but if nothing is done they are out on the street in a few weeks, so we agree to proceed. Although their payments will increase, I offer to pick up this cost, which will be relatively easy from the increased rental income I will be receiving.
As time is of the essence I immediately sign the papers and the $30,000.00 goes to their account. Now the fun starts. She is swanning off to the U.K. again for another art therapy course and does not have time to sign off before going. When she comes back, still no signature. So my construction loan does not happen.
Over time I did sense there was some resentment towards me, over my relationship with Gary. While I care very much for him, I would argue she had no grounds to feel threatened, as I cared very much for all the family, which I feel was clearly demonstrated the previous few years, with the support I gave them. Rihana was always very pleasant with me, but comments dropped by Gary suggested I was not high on her list of favorite people.
Gary had always been a great father and faithful husband.
So their home is saved and mine with all my plans is in jeopardy. After the three months my first mortgage becomes due for renewal. Without the agreed construction loan, we still have insulation, drywall, painting and carpeting to complete on the rear section. With the additional financing placed, reducing my equity by $30,000.00 the appraisal is not high enough, (especially with the building being uncompleted), to qualify, so I effectively move into default.
When Arnold suggests managing the construction for me, given the circumstances of my health, failing vision and precarious financial position, it would appear to be in my interests to co operate.
Arnold Molder is not a bad man, but he starts taking things in a different direction. He wants to modernize the old bungalow before completing the new section, which to me is crazy. To do that he has to pay Michael a $2000.00 relocation fee to vacate, then brings in people to start ripping out walls for an open concept. All expenses will come out of my proceeds when the property is sold.
Meantime while shoveling some soil in the back area, I go through the heart symptoms once again and once again it is off to the hospital. Now the medical situation is further complicated with my difficulty with vision. Minor tasks become major and driving is borderline.
The younger Mike was now renting the basement, and working on the landscape and the snow. But he slipped into his old ways and ripped off a car for a joy ride. I bailed him out (pending trial) for $1,000.00 with a condition he had to continue to live in my basement. He subsequently jumped bail and took off, along with various tools from my garage. You win some, you lose some.
In the Spring of 2006, with the rear section, still not completed, an offer to purchase comes in. With my condition deteriorating, I decide it is time to sell. I had no idea of the degree my equity was being decimated, not only by the misguided construction within the original bungalow, but also trumped up legal, transfer and mortgage fee charges, commissions etc etc appearing from no where.
I should have had a lawyer of my own to be involved in the closing, but with my medical limitations, relied on Arnold and Nakelsky. In retrospect I was just about in survival mode by this time and just to get through it was the current main objective.
So after investing $20,000.00 with the deposit, when I brought the property and sinking well over $100,000.00 in materials and labour during construction, this is how it finally played out.
The final tally. Purchase Price. $ 59.000.00 Sale Price $326,000.00 My Allocation $ 8,000.00 (the amount I actually walk away with.)
A comparable property just down the street, completed but smaller just sold for $425,000.00
So after funding Rutledge Landscape for at least $200,000.00 over four years and unnecessarily losing another $100.000.00 through the financing agreement not coming together because Rihana failed to keep the agreement, I am not too happy..
I got worked over real good by Arnold's partner David Nakelsky. (The lawyer in this deal) They took a beating on the house we purchased on Broadway Ave. in 1982 so I figure this was payback. He is aware I am not in a position to get into a legal fight, and I can't even see, to read the documents.
This challenge with my sight and limited cash for an accountant also precluded me from claiming tax losses that would have offset taxes due on my business earnings.
FOOT NOTE. A few months later, on a return visit to Canada, I spoke to a lawyer, who felt I had a very strong case and wanted to litigate for a substantial claim. But his required retainer was out of my reach. I could also file a complaint with the Ontario Real Estate Ombudsman's office for free, but would need to attend for meetings, so that was not an option, now living so far away.
I then rented a building on Broadview, behind an apartment building. I could drive my truck in and accommodate all my equipment. Although it was not zoned residential, the landlady turned a blind eye. We divided a section off with furniture and threw some carpet down, for a living space.
Son and Becky moved in with me and I even managed to drag him out odd days to help on the landscaping. This was a stretch, as it was totally foreign to him, but a move for him in the right direction.
As my sight got worse, having only one good eye I was concerned about having the cataract operation, as a complication could leave me totally blind. In any event, I knew I would not plow again so all income potential was now curtailed.
I had a meeting with my doctor to discuss my prognosis and determine my next step. I needed to know, how long I might have. He thought if I was careful, I might make it to 70. (As I write this I am a couple of days shy of 74.)
So I decided to return to England. Son vehemently opposed this idea, saying we would manage somehow, but I wonder.... how?
I booked a flight for Oct and the travel agent assured me I could take my dog Becky as long as she was caged. Simple tasks where becoming difficult. You open a can of custard and it turns out to be a can of chicken soup. I like both, but not chicken soup on apple pie or custard on chicken breast Using the phone or finding a number was not something I could now manage.
Talking to Gary one day I asked him to call Anne and ask her to call me, to see if I could stay with her awhile when I returned to the U.K. A short time later, having not heard back I asked him about it and he said he hadn't been able to reach her, so I asked if he could try again.
His response really threw me. " I am getting tired of doing things for you". I instinctively came back with "After all I have done, how can you say that?" His next remark cut deep "Don,t lay a guilt trip on me, you took 10% off the top of everything" I was absolutely speechless and did not say another word.
I wasn't even thinking about the money, but rather the moral support over the last few years. But turning to the money I would never have taken a cent off the top, or even have been able to, as all the cheques went straight to them. If I had wanted to try and cheat them, I could have inflated the expenses shown, but I wasn't getting paid for the expenses anyway nor ever once asked for any payment of them. I do recall Gary once saying he would pay me back every penny, but did not think anymore about it.
At first I was very hurt by his comment, but after thinking it through, I think I may understand. He is a very proud man, and it would be important to him to be able to support his family. The mind is a wonderful thing, protecting us from thoughts difficult to accept. Abused children are known to block out the memory of the events, as self preservation. Gary may have sub consciously allowed himself to believe I profited from performing his contracts, in order to come to terms with the situation. If this is the case and it works for him, I am good with it.
I have no ill feeling towards Gary over the money. As it reads in the bible "Blessed is the man who seeing his brother's need does provide, knowing his own needs will be met by others"
The next road block was with my faithful canine friend Becky. Shortly before leaving for the U.K. I took her to the vet, to see if they could give her something to calm her for the flight. I then discovered she needed several shots, one of which had to be administered six months before departure. OOPS.
The thought of leaving her was awful, but Michael agreed to look after her for the quarantine period and then I would come back for her. Some of my equipment I gave to Daryn and left the truck with Michael.
Son came to the airport with me and after our farewells I left Canada, without the fortune I had come to collect. So near but so far.