Municipal taxpayers brought an action challenging a waterfront redevelopment project involving a municipality and a private developer.
The plaintiffs sought declarations that agreements transferring municipal land in exchange for community benefits were ultra vires, constituted illegal bonusing under s.106 of the Municipal Act, 2001, lacked consideration, and created an unlawful partnership.
On cross-motions for summary judgment, the court held the contractual arrangement fell within the municipality’s broad powers under ss. 8, 9, and 11 of the Municipal Act, 2001 and s.37 of the Planning Act.
Viewing the transaction as a whole, the court found the municipality received substantial community benefits and economic advantages, meaning the arrangement did not confer an obvious or undue advantage on the developer.
The plaintiffs’ claims were dismissed and summary judgment granted to the defendants.
