Ontario Construction News staff writer
The Ontario Land Tribunal has upheld the City of Guelph’s decision requiring Forum Asset Management to pay nearly $11 million in development charges for the second phase of a student-oriented rental housing development at 601 Scottsdale Drive.
In its Oct. 29, 2026 decision, the tribunal affirmed the City’s application of its 2024 Development Charges Bylaw, ruling that the second phase of the development does not qualify for an exemption from development charges.
Forum Asset Management filed a complaint with Guelph City Council in May 2025, disputing the charges. Council dismissed the complaint, prompting the company to appeal the decision to the Ontario Land Tribunal.
Development charges help municipalities recover the capital costs associated with growth, including roads, water and wastewater infrastructure, emergency services, parks and recreation, transit and other community amenities.
The charges are governed by the Development Charges Act, 1997 and municipal bylaws. Provincial legislation provides exemptions and discounts for certain types of development, including affordable housing and rental housing.
The second phase of the 601 Scottsdale development has already received a $2.4-million reduction in municipal development charges for purpose-built rental units, as required under the provincial legislation.
Guelph Mayor Cam Guthrie said the City supported the proper application of statutory and discretionary exemptions where there is a clear public benefit, but argued the development was not entitled to an additional exemption.
“New Provincial legislation has, in some cases, created situations where more clarity is needed by both cities and developers when building new housing. Where language is ambiguous, profit-oriented parties will interpret in the way that aligns with their goals. We recognize that statutory and discretionary exemptions can serve an important public purpose, and we support their proper application where the corresponding public benefit is clear,” Guthrie said.
“In this particular case, City Council and I were confident the City had applied its Development Charges Bylaw correctly, and understood we had to defend that decision at the OLT to ensure that existing residents and property taxpayers were not subsidizing a development that was not entitled to an exemption under the Development Charge framework in place at that time. I’m thankful we took that stand, especially when nearly $11 million was on the line.”
For more information: guelph.ca/dc.
