Guelph, Ont., October 30, 2026 – In its October 29, 2026 decision, the Ontario Land Tribunal upheld the City’s application of its 2024 Development Charges Bylaw requiring a developer to pay development charges on the second phase of new geared-to-student housing at 601 Scottsdale Drive.
Development charges help municipalities recover the capital cost required to support growth. They help pay for roads, water and wastewater infrastructure, emergency services, parks and recreation, transit and other amenities required before and alongside new development.
Initially, development charges were set up to prevent current residents and businesses from paying for growth-related capital costs. Over time, however, statutory exemptions and discounts have shifted how growth-related costs are shared, with a larger portion now funded through property taxes and utility rates.
“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,” said City of Guelph Mayor Cam Guthrie.
“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.”
In May 2025, Guelph City Council reviewed and dismissed a complaint from Forum Asset Management about development charges on the second phase of a new rental housing development geared towards students at 601 Scottsdale Drive. Forum Asset Management appealed the decision to the Ontario Land Tribunal, which ultimately affirmed City Council’s decision that the development is not exempt from development charges.
Development charges are governed by the Development Charges Act, 1997 and the City’s Development Charges Bylaw. These rules include Provincially mandated exemptions and discounts for certain types of development, such as affordable housing or rental housing. The second phase of development at 601 Scottsdale has already received a discount of $2.4 million from municipal development charges for purpose-built rental units, as required under the Development Charges Act.
To learn more about development charges, you can visit guelph.ca/dc.
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