Ontario Construction News staff writer
A Toronto-based developer has until July 8 to appeal a Guelph city council decision requiring it to pay development charges on a student-focused housing project at 601 Scottsdale Dr.
Forum Asset Management had argued that the charges should not apply, filing a formal complaint with the city on March 31 under Section 20 of the Development Charges Act. After a hearing on May 15 — rescheduled from April 29 due to a power outage — council, sitting as a tribunal, dismissed the complaint.
Council ruled that the new purpose-built rental units do not qualify for a development charge exemption. The official decision was issued on May 29.
Development charges help pay for infrastructure such as roads, water, sewer and other services required to support growth. While the project is not exempt, it does qualify for a $2.6-million reduction under provisions in the Development Charges Act for purpose-built rentals.
Forum may still avoid the charges entirely if the units are rented at or below the province’s affordable rental threshold in Guelph for a minimum of 25 years.
More information on development charges is available at guelph.ca/dc.
