Ottawa Construction News staff writer
The Town of Smiths Falls has agreed to a settlement with the developer of the Bellamy Farm subdivision, averting a looming legal battle over municipal development charges.
Town council’s committee of the whole gave the nod on Jan. 26 to settle a dispute with Park View Homes. The developer had filed a Notice of Application in December 2022, arguing the town’s development charges should not apply to the multi-phase residential project.
Paul Dowber, the town’s director of corporate services and treasurer, told the committee the agreement provides certainty and protects the municipality from the unknown legal costs of litigation.
The dispute centred on an agreement of purchase and sale from 2006, which Park View Homes argued predated the town’s 2022 development charges bylaw. In its application, the developer alleged the town “purposely delayed” the subdivision’s progress until the bylaw was passed, making Bellamy Farm’s building permit applications subject to the new fees.
The town rejected that claim. In a report to the committee, Smiths Falls argued the 2006 agreement was invalid because it constituted “bonusing” under the Municipal Act, which prohibits municipalities from directly or indirectly assisting commercial enterprises through total or partial exemptions from levies, charges, or fees. The town also argued the older agreement fettered its decision-making powers.
Under the 2022 bylaw base rates, Smiths Falls imposes a development charge of $10,024 for townhouses and $12,530 for single and semi-detached units to help finance growth-related capital costs and maintain service levels.
The Bellamy Farm subdivision has been constructed in three phases, totalling 385 units. Phase 1, consisting of 63 townhouses and bungalows, received final approval in 2018. Phase 2 added 166 units and was approved in 2022, while Phase 3, comprising 156 townhouses, is currently under construction.
According to the municipal report, the developer initially paid the disputed charges “under protest,” and the matter was scheduled for a pre-trial hearing in May 2025.
Following a series of discussions, both parties reached a “good faith settlement” to resolve the matter out of court.
The specific financial terms of the settlement, including the final amount of development charges the builder is ultimately required to pay, were not disclosed. The municipality also did not release the total legal costs it incurred during the dispute.
A final bylaw to formally execute the agreement is expected to be brought before town council at a future meeting.
Video from town council meeting where the settlement agreement was discussed: https://www.youtube.com/live/lJJCYI_-Oo8?si=Ev70cN1hadUgqZqU
