Smiths Falls reaches settlement with developer over Bellamy Farm development charges dispute

The Town of Smiths Falls has reached a settlement with developer Park View Homes over a dispute concerning development charges for the Bellamy Farm subdivision. Park View Homes argued that the town’s 2022 development charges bylaw should not apply to their multi-phase residential project, citing a 2006 agreement of purchase and sale. The town countered that the 2006 agreement was invalid due to “bonusing” prohibited by the Municipal Act and that it restricted the town’s decision-making.

The dispute involved charges of $10,024 for townhouses and $12,530 for single and semi-detached units, intended to fund growth-related capital costs. The Bellamy Farm subdivision consists of 385 units across three phases, with Phase 1 approved in 2018, Phase 2 in 2022, and Phase 3 currently under construction. The developer initially paid the charges “under protest,” with a pre-trial hearing scheduled for May 2025.

Following discussions, a “good faith settlement” was reached to resolve the matter out of court. The specific financial terms of the settlement and the town’s legal costs were not disclosed, but the agreement provides certainty and avoids the costs of litigation. A final bylaw to execute the agreement will be presented to the town council at a future meeting.

(Source：London Mercury)