A legal challenge against a loan guarantee bylaw related to an affordable housing project in Canmore will result in the legislation being withdrawn by local elected officials.
A legal challenge against a loan guarantee bylaw related to an affordable housing project in Canmore will result in the legislation being withdrawn by local elected officials.
A judicial review notice by Lion's Park resident Jan Tafel was served on the municipality earlier in June at a council meeting. The legal challenge took issue with a loan guarantee bylaw council had passed to secure construction financing for Canmore Community Housing Corporation to develop perpetually affordable housing on land referred to as the old daycare lands, or Larch Park.
Tafel has opposed the project, speaking out at two public hearings on the project and helped to submit a petition against it.
“There is no housing of any kind that would enhance the Larch Park neighbourhood,” Tafel stated at a public hearing in January. “Perpetually affordable housing is a huge expense and a waste of time.”
In order to proceed with construction, CCHC needed council to pass a loan guarantee bylaw, in essence insuring the construction loan the municipally owned corporation would secure from BMO to finance the project.
The Municipal Government Act sets out the requirements of those kinds of bylaws, including the need to clearly state the interest rate to be used, or provide the method the interest rate would be calculated. Tafel challenged the bylaw on that ground, submitting in her legal challenge that information provided in the legislation was ambiguous, vague and lacked quantification.
The approved bylaw included the method of calculation for the interest rate, but not a specific interest rate.
General manager of municipal infrastructure Michael Fark said this week the Town is confident it would successfully defend itself and the bylaw at a judicial review. However, he said, administration has chosen to bring the bylaw forward to council next Tuesday (July 3) to rescind it instead.
“We do not feel (going to court) is a good use of Town or court resources,” Fark said. “The fact is, we can rescind the bylaw and put in the actual interest rate. That removes any ambiguousness, vagueness or lack of quantification and would be a more timely, speedy process and better use of resources than fighting the review.”
A new bylaw, also expected for first reading next week, would receive third reading at the end of summer, given the required time needed to advertise it in the community. Fark said the new bylaw and time needed for it to be passed would not materially affect timing of the PAH project.
CCHC has chosen Distinctive Homes and Marshall Tittemore Architects as the design build team to develop the PAH project after an extensive expression of interest and request for proposal process.
