Experts Weigh in on the Local Planning Appeal Tribunal 1 Year Later
It has now been a year since the Ontario Government passed Bill 139, finalizing the Building Better Communities Act, 2017 and replacing the Ontario Municipal Board (OMB) with the Local Planning Appeal Tribunal (LPAT). The Urban Land Institute (ULI) held an event in early December 2018 to examine the effects this important change has had on the real estate industry thus far.
The event was moderated by Joseph Ragusa, Principal of Sussex, and featured three panels taking on three distinct perspectives within the real estate development industry. While there were some interesting points made by each panel, the consensus among the group is that the implications of LPAT are still largely uncertain.
Panel 1: Municipal
The first panel, taking the side of the municipality, included David Sit, Community Planning Manager with the City of Toronto and Claudia Storto, Municipal Lawyer and Former Vaughan Solicitor. Both Sit and Storto were quick to make evident their support for LPAT. Sit pointed to the annulment to official plan appeals and secondary plan amendments as pros, as it provides municipalities with more power in implementing land use planning policy. When asked about what steps municipalities could take in order to ensure timelines are met, Sit and Storto both noted that changes to operational procedures with respect to public meetings are currently being discussed but nothing has been finalized on either side.
Panel 2: Industry
The second panel, taking the industry perspective, included Shamez Virani, President of Centrecourt, Mary Flynn-Guglietti, Partner at McMillan LLP, and Cyndi Rottenberg Walker, Partner at Urban Strategies.
Virani noted that LPAT has resulted in significant changes to CentreCourt’s approach to development. Their timeframe has doubled, they are taking a much more conservative approach to acquisitions, they are targeting projects that allow for more flexibility, and they have become more open to entering new markets. Virani believes that the slower time frames will worsen housing affordability and that the 905 region is going to play a much larger role in the future of development in the GTA.
Rottenberg Walker of Urban Strategies stated that the changes have empowered municipal voices, resulting in a meaningful difference in conversations with city staff. She worries, however, that the pendulum has swung too far in their favour. With the power being in the hands of municipalities, she asks “are we going to do things that are easy, rather than things that are necessary?”
Flynn-Guglietti agreed with her, stating that this changing power structure has resulted in a much more uncertain process, but with too few applications under LPAT, it is too hard to evaluate the true nature of this change.
Panel 3: Political
The changing power dynamic was again reiterated in the third and final panel, representing the political outlook and featuring Karen Stintz, former Toronto city councillor and CEO of Variety Village, Joe Vaccaro, CEO of the Ontario Home Builders’ Association, and Brian Zeiler-Kligman, Senior Associate at Sussex. Vaccaro quickly pointed out that while LPAT has given more power to the municipalities, it has also given more power to city council. He noted that if a politician with an anti-development rhetoric gets elected, that ward can easily become a no-go for development.
However, the strongest stance of the event was taken by Stintz, who stated, rather aggressively, that she believes it would be to the benefit of all if LPAT was suspended until further clarification. To which moderator Ragusa cheekily added a comment about his enjoyment in hearing political-types speak following their leave of office.
So while the word ‘uncertainty’ was a key theme throughout the event, it is evident that a changing power dynamic between industry and municipality may be something to pay attention to as these changes become normalized. After all, it doesn’t take much effort to find examples of politics playing too large a role in the industry, whether it be real estate or otherwise.
We would love to hear from you. What are your thoughts on Bill 139 and the Local Planning Appeal Tribunal?
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