Environmental groups are expressing concern about potential conflict of interest between the city, private consulting firms and housing developers regarding a development that proposes the dramatic reduction of a flood plain.

A group of builders has proposed shrinking the Carp River's flood plain, from 500 metres to 100 metres, on 250 acres of land in order to build hundreds of new homes in Kanata, just north of the Corel Centre.

Council approved the plan in December. There was no debate at council, although the practice of building on a flood plain is generally discouraged by the province.

At least one environmental consulting firm was employed by the city and the developers. It studied the environmental impact of the project for the city and devised an environmentally appropriate site plan for the builders.

"It would seem there could be a conflict of interest in the situation where you have someone doing a study to figure out whether or not a project is appropriate, then the organization conducting the study stands to gain with one outcome over another," said Carole Gudz, with the environmental advocacy group Sierra Club.

The area's city councillor, Peggy Feltmate, says the city and developers often use the same firm to do environmental and engineering research into a new development.

Although Feltmate realizes it raises questions about whom the consultant is really working for, it saves the city money.

"People are looking for reduced taxes, and in the climate of people looking for private-public partnerships, sometimes that clarity of what is the public good, appears to be compromised," she said.

City planning staff says there is no conflict of interest.

Planning director Dennis Jacobs says there are actually benefits, because the consultant gets a chance to understand the needs of both sides.

The issue of conflict of interest arose earlier this year, in relation to the proposed Alta Vista Corridor.

The city contracted Delcan, a "multi-disciplinary engineering firm," to conduct an environmental assessment for the project. If the project is approved, Delcan can also make a bid to build the road.

It came out that many engineering firms that benefit from city contracts employ former city staffers.

Former municipal councillor Alex Munter, says these consultants become problem solvers for the developers. He points out that it's not in an engineer's interest to go to a client with a report recommending a development not go ahead.

"I've tried to recall a case from my 12 years in local government where a consultant, hired by a developer, has recommended against that developer's project, and I can't think of one."

Munter suggests that the city be a consultant's client, not the developer, to better use the firm's skills "to unambiguously protect the public interest."