This is Article 2 in a series. Article 1, “Three Housing Proposals Went to North Frontenac. None Went Anywhere,” was published April 6, 2026.
Disclosure: The author is a declared candidate in the upcoming North Frontenac municipal election.
North Frontenac committed $97,294 in public money to the Frontenac Municipal Services Corporation, a regional water and wastewater entity. South Frontenac has an active pilot project in Verona, with $3.2 million in provincial funding secured and a completed water and wastewater study. Central Frontenac has a site under consideration in Sharbot Lake. Frontenac Islands has a site under consideration in Marysville. North Frontenac has nothing. According to Mayor Gerald Lichty’s written response to NFNM, the township “did have a potential project, but the proponent elected not to proceed with the development and closed out the file.”
That is the return on $97,294 in public money.
Council voted 5-2 on June 20, 2023, to authorize the contribution under Resolution #285-23. Twenty percent (approximately $19,500) was due within 30 days of incorporation. The balance was to be paid over five years, funded from the Contingency Reserve Fund.
What the FMSC Is
The Frontenac Municipal Services Corporation was incorporated under the Ontario Business Corporations Act. Its mandate, according to By-law #2025-30, is “to oversee and regulate the installation and operation of communal water and wastewater services in the County of Frontenac.”
The word “housing” does not appear in the shareholders agreement. Neither does “affordable housing,” “social housing,” or “housing development.” Public communications on EngageFrontenac describe the FMSC as enabling housing through infrastructure. The legal document says water and wastewater only.
Who Controls It
The shareholders agreement, signed May 20, 2025, and authorized by North Frontenac through By-law #2025-30 on July 10, 2025, establishes a clear hierarchy.
South Frontenac holds 5,862 Class A shares, 58.6 percent of the voting stake. Central Frontenac holds 1,639, or 16.4 percent. North Frontenac holds 1,574, or 15.7 percent, the second-smallest township position. Frontenac Islands holds 926 shares, 9.3 percent. The County of Frontenac holds 2,500 Class B shares, which carry no vote on Class A shareholder matters.
A quorum requires at least one South Frontenac director present. South Frontenac must be represented for any initial quorum. If no quorum forms, the meeting may be adjourned; after two failed attempts, a quorum can proceed without South Frontenac. In practice, South Frontenac still controls the board calendar.
South Frontenac holds the majority but cannot act alone. Any shareholder resolution requires more than 50 percent of the votes, which means South Frontenac needs at least one other township to agree. That is the single constraint on its dominance.
North Frontenac paid the second-smallest amount and holds the second-smallest voice.
Who Signed It
Gerald Lichty signed the shareholders agreement as Mayor of North Frontenac. He also signed it as Warden of the County of Frontenac, representing the County’s Class B interest. Two different roles, two different lines on the same document. Clerk Tara Mieske signed for the township. County Clerk Jannette Amini signed for the County.
Lichty is no longer Warden. The current Warden is Bill Saunders. Lichty remains Mayor of North Frontenac and, according to his written response, currently serves as chair of the FMSC Board of Directors.
What Lichty Said
NFNM sent questions to Mayor Lichty on April 2, 2026, with a follow-up on April 3. His responses arrived April 7, 2026, the day after Article 1 in this series was published. They came through CAO Corey Klatt, not from Lichty directly.
On municipal corporations: “Municipal corporations of any type are expensive and time consuming to create. However, given the right purpose and appropriate conditions, they can be beneficial and worthy of consideration.” At the November 22, 2024 council meeting, Lichty told council that “a municipal housing corporation would cost us a lot of money and time.” The written response did not address the shift in framing.
On FMSC pilot projects: Lichty confirmed North Frontenac’s annual contribution of $17,545 per year, for a five-year installment total of $87,725. The total FMSC budget across all shareholders is $697,000 over five years. Council’s June 2023 resolution authorized $97,294 as North Frontenac’s total contribution. Lichty’s $87,725 figure and the resolution’s $97,294 figure do not reconcile. The gap of $9,569 is unexplained in his response. He confirmed the township had a potential project whose proponent chose not to proceed. He did not address why other townships have projects or sites under consideration and North Frontenac has none.
The Question He Did Not Answer
NFNM asked directly whether Lichty or any immediate family member holds a financial interest in land or development in FMSC-served areas. His full response:
“FMSC was incorporated in 2023 to promote and oversee the implementation and operation of communal water and wastewater systems in Frontenac County. Although connected to the shareholders, FMSC operates at arms-length and has autonomy over its operations. FMSC governing documents include a shareholder agreement as well as an operational bylaw. As the current chair of the FMSC Board of Directors, Mr. Lichty is in full compliance with all corporation requirements including clauses related to Interest of Directors in Contracts, Declaration of Interest, and the Municipal Conflict of Interest Act.”
He did not state whether he or any family member holds a financial interest in FMSC-served land. The question asked for a yes or a no. The response was a compliance statement.
On documentation: NFNM asked for FMSC governing documents. Lichty directed NFNM to the CEO: “For enquiries regarding internal documents relating to Frontenac Municipal Services please contact Justin Bromberg, CEO at JBromberg@frontenacms.ca directly.” NFNM had requested the shareholders agreement directly from Clerk Tara Mieske on April 3. It arrived April 8 — the day after Lichty’s response.
What the Agreement Locks In
The shareholders agreement is declared a Unanimous Shareholder Agreement under the Ontario Business Corporations Act.
No community benefits can be distributed without the unanimous written consent of all shareholders. In practice, one township can block any benefit-sharing arrangement.
The corporation may borrow from its shareholders by loan under emergency conditions.
No shareholder may withdraw before September 1, 2028. Written notice must be given by September 1 of any year. Withdrawal takes effect December 31 of the following year, a minimum 16-month delay. North Frontenac cannot leave early even if it wanted to.
The exit terms are punitive. A withdrawing shareholder forfeits its shares at $1.00, must forgive any amounts the corporation owes it, and must pay all exit costs, including lawyers, accountants, land transfer tax, and income taxes.
A confidentiality clause survives exit. Former shareholders cannot disclose “private affairs of the Corporation, any trade or business secrets.” A township that leaves the FMSC is contractually prohibited from discussing what happened inside it.
The Pattern
North Frontenac committed $97,294 in public money to a regional corporation where it holds the second-smallest stake. It has no pilot project. One other township has an active funded project. Two more have sites under consideration. North Frontenac has not even reached that stage. The mayor who signed the agreement twice, in two different capacities, now chairs its board. When asked a direct question about financial interest, he provided a compliance statement. When asked for documents, he directed the journalist to the CEO for a document the clerk had already provided in response to a direct request.
The exit terms mean North Frontenac is locked in until at least the end of 2029 at the earliest. If it leaves, it forfeits its investment at a dollar, absorbs all costs, and is bound to silence about what it learned inside.
Residents paid for this. They are entitled to know what they bought.
The Reply
On April 9, 2026, after this article was finalized and right-of-reply had been sent, Mayor Lichty responded. He did not dispute a single figure. He did not address the conflict of interest question. He did not explain why North Frontenac has no pilot project or site. He did not account for the gap between the $87,725 figure in his own response and the $97,294 authorized by council.
His reply accused NFNM of fabricating facts, using off-the-record material, and coordinating politically to influence the election. It claimed he had been blocked from NFNM. He has not been blocked from NFNM or any platform. NFNM publishes at nfnm.tv, accessible to anyone without registration.
The questions about $97,294 in public money remain unanswered.
Disclosure: The author is a declared candidate in the upcoming North Frontenac municipal election. This article relies on the FMSC shareholders agreement, North Frontenac council resolutions, By-law #2025-30, and written responses from the mayor’s office. No anonymous sources are used.
Editor’s note: NFNM sent right-of-reply questions to Mayor Lichty on April 2 and April 3, 2026. A response was received April 7, 2026, via CAO Corey Klatt. Clerk Tara Mieske provided the shareholders agreement on April 8, 2026. On April 9, 2026, Mayor Lichty sent a further email that did not address any of the specific questions posed. Instead, it accused NFNM of fabricating facts, using off-the-record material, and coordinating politically with other individuals. It also claimed Lichty had been blocked from NFNM. That claim is factually inaccurate. NFNM has not blocked Mayor Lichty from its Facebook page or any other platform. NFNM publishes at nfnm.tv, which is publicly accessible without registration. His full response is on file. All questions and correspondence are preserved on file.
