l: L. if) tilt. ll 3 Court of Queen?s Bench of Alberta CA LG. AR Y, til iitT?. Citation: Grunmn Canmore (Town), 2013 ABQB 507 Date: Docket: 160] 01690 Registry: Calgary Between: Mark W. Gruman Applicant - and The Town of Canmorc Respondent Reasons for Decision ofthc Honourable Mr. Justice M. David Gates I .. Introduction and Overview The rezoning of part of the Peaks of Grassi area (the ?Lands?) located in Canmore is a matter of interest. to many citizens of Camnore, as evidenced by the number of people who attended the hearing of this Court application on March 14, 2017. The rezoning may lead to an increase in residential units being built in an area where it is not previously permitted. The strong Opposition to the rezoning expressed by certain Citizens, notably the Applicant, is not, however, suf?cient to grant the application. In this matter, I need to determine if the amendment to the zoning bylaw, approved by a majority of the Town of Canmore Council, is invalid. This is a judicial review application relating to a Canmore rezoning bylaw that is applicable to the Lands which consists of three lots. The Applicant, Mark W. Gruman, is opposed to the rezoning and seeks an order invalidating Bylaw 20} 5?19, Peaks qurassz? Direct C(mrrol District (the ?Grassi Bylaw Amendment?) enacted by the Town of Canmore (?Town? Prior to the amendment, the lands were zoned as Urban Reserve. The Page:2 third lot (?Site is adjacent to an environmental reserve. The Applicant is one of the owners of land adjacent to the lands sought to be rezoned and he lives in the neighbourhood where the lands are located. The issue in this case is whether the Grassi Bylaw Amendment is invalid for reasons of tim'casonableness or lack of procedural fairness in the process leading up to its passage. During oral submissions, Counsel for the Applicant specified that his main concerns relate to the procedural defaults. The Applicant questions the nature, appropriateness, accuracy and completeness of the information given by the Town?s administrative employees (?Administration") to Council when the majority voted in favour of the Grassi Bylaw Amendment. Specifically, the Applicant submits that the Town Administration misinformed or misled Council with reapect to the ?ood risk analysis, the screening reports, as well. as the environmental impact statement which led to a breach of the Applicant?s right to procedural fairness as well as rendered Council?s decision unreasonable. The Applicant also questions whether Council complied with the prescribed procedure mandated by the legislative scheme. First, he submits that Council considered input following the public hearing, thereby violating Council?s procedural bylaw. Second, he submits that the Town ofCanmore failed toineet the Municipal Development Plan mandatory requirements for an independent, and professional third party review of the BIS. The Town of Canrnore?s position is that the Grassi Bylaw Amendment should be upheld, because the procedure that was adopted met the applicable standard of procedural fairness and involved no breaches of administrative law principles. This application for judicial review of the Grassi Bylaw Amendment was heard by me on. March 14, 2017. At the conclusion of oral argument, the parties were invited to ?le supplementary written arguments on the question relating to the EIS. The Town filed supplemental written submissions on March 21, 2017, while the Applicant tiled supplemental written submissions on March 29, 2017. Before 1 determine the issues as to whether there was a breach of procedural fairness and whether Council?s decision was reasonable, will ?rst briefly review the procedural history of this case. Second, I will review the facts that are relevant to all issues raised in this Application, and third, I will determine the applicable standards of review. 1 will then turn to each issue raised by the Applicant. These are my reasons for decision. II. History of the Proceedings [l 0] The Originating Application was ?led on February 26, 2016, following a decision made by the Council on January 19, 2016, to change the zoning of the lands from Urban Reserve District to DC-Direct Control District, PD?Public Use District, and R1 B?Rcsidential Single-w- Family Detached Plus District. This change permits different types of development uses to be considered on. the Lands in the future, including the development of residential units which use was not permitted, and could not be considered, under the Urban Reserve District designation. Page:3 [1 l] The Amended Originating Application (?the Amended Application?) was ?led on March 17, 2016. The Amended Application added four new grounds for relief in addition to those advanced in the Originating Application. [12] On March 31, 2016, McCarthy .1. granted an initial interim stay. On July 21, 2016, Rawlins J. heard an application for an extension of the interim stay of the operation of Grassi Bylaw Amendment as well as a cross?application brought by Canmore to strike the Amended Application on the basis that the Applicant could not show a triable issue. On August 12, 2016, Rawlins granted the stay pending the judicial review application. At the same time, she struck four of the grounds of requested relief. On December 7, 2016, the Court of Appeal restored the four grounds lot-judicial review previously struck by Rawlins .l .1 2016 ABCA 392. Facts [13] The Lands form part of the Peaks ol" Grassi neighbourhood and consist of 44.99 acres excepting two parcels of 21 .2 and 19.79 acres (subdivision numbers 971 1290 and 98 3573), respectively. The Lands include three lots: Site 1 (the most westerly parcel), Site 2 and Site 3 (the East parcel). [14] The Lands were purchased by 1.861523 Alberta Ltd, l'lillcrol?t Developments Ltd. and 1457115 Ontario Limited (?the Developer") on March 11, 2015. The Lands consist of an undevelOped mixed coniferous forest with a limestone outcrop in one area and were designated Urban Reserve prior to the March 2015 purchase. 5] The purpose of the ?Urban Reserve" is protect land that is potentially suited for urban uses from premature subdivision and development?: Tom-1 ofCam-nore Land Use Bylaw 22-2010, 8 2.61.1. Urban Reserve lands receive preliminary screening only and may require environmental, geotechnical and other screening in order to determine their potential suitability for any development: Town ofCanmore Land Use Bylai-v 22?2010, 3 2.61.1. [16] The permitted uses and discretionary uses of an urban reserve are enumerated under 2.61.2. and 2.61.3 of the Town QfCai-nnore Land Use Bylaw 222010 as follows: public utilities, campgrounds, cemeteries, cultural establishments, extensive agricultural pursuits, intensive agricultural pursuits, kennels, outdoor athletic and recreational activities, parks and playgrounds, public and quasi-public buildings and uses and signs. In other words, under the Urban Reserve zoning, the Lands could have been developed, although only in accordance with the permitted or discretionary uses specified under 2.61.2 and 2.61.3. [l 7] In 1998, the Totvn of Camnore and the prior owners of the Lands entered a non?legally binding Settlement Agreement according to which building within the Peaks of Grassi neighbourhood was capped at 45 acresgvith residential units not to exceed 404: Af?davit of Mr. Ciruman, ?led February 26, 2016, tab 3 at para 4.1. [18] In 2014, the Developer sought to rezone the Lands from Urban Reserve to Direct Control and Public Use District which would have permitted the development of residential units. This type of development was not permitted under the Urban Reserve designation. This first application to rezone a part ol?the Peaks of Grassi, which is not at issue in the Application before this Court, was rejected by Council in February 2015. A second bylaw application, the subject of this Application, was submitted on August 25, 2015. it included a proposal to allow for affordable housing to be built perpetually affordable Page:4 housing ?PAl?l?) and market affordable housing. The application was considered by Council and given a first reading. It was then set down for a Public Hearing in accordance with section 230 of the Municipal Government Act, RSA 2000, M-26 (as it react at that time). The Public I?learing was held on November 24, 2015, and adjourned at the close of the hearing. It is not disputed that the majority of the submissions made by members of the public opposed the application for rezoning. [20] Following the conclusion of the Public Hearing, the Developer and the Canmore Community Housing Corporation a corporation with 100% of its shares owned by the Town of Canniore, worked on several draft. agreements speci?cally contemplating perpetually affordable housing on Site 1. On January 19, 2016, entered into a purchase and option agreement with the Developer Agreement"). I. note that mandate includes the provision of perpetually affordable housing. [21] On January 19, .2016, Town Council approved the second bylaw application, the Grassi Bylaw Amendment, for a re-designation of the Lands, effectively opening them up for residential development. The Applicant now seeks an order invalidating the bylaw resulting from the second bylaw application the Grassi Bylaw Amendment. 1V. Standard of Review [22] The Applicant submits that the standard of review for questions of procedural fairness is correctness. The Applicant also says that the decision of a municipal council is rcviewable on a reasonableness standard. [23] The Town agrees with these standards, but adds that the reasonableness of municipal bylaws must be assessed in the context of the particular type of decision-making involved in this case, and all other relevant factors. Citing Catalyst Paper Corp North Cowieiimi (District), [2012] 1 SCR 5, the Town argues that bylaws are not quasi-judicial decisions, but rather are legislative (as opposed to adjudicative) in nature. [24] The applicable standard of review with respect to issues ofprocedural fairness is correctness: see, for example, Eagles Nest. Your]: Ranch Inc Corinna Pork (Rum! Municipality #344), 2016 SKCA 20 at paras 20-25. The content of the duty varies according to the following ?ve factors: a) the nature of the decision and the decision making process employed in making it; b) the nature ofthe statutory scheme and the precise statutory provisions pursuant to which the public body operates; c) the importance of the decision to the individuals affected; d) the legitimate espectations of the party challenging the decision; and e) the nature of the deference accorded to the body. See Baker Canada (tittinisfer of Citizenship and [1999] 2 SCR 817 at paras 21 ff. See also Cannibal! Edmonton (Clint), 2014 ABQB 742. [25] in this case the Town argues that it was required to afford a low to a moderate degree of procedural fairness. The Applicant argues that a high degree of procedural fairness must be afforded. Page:5 [26] As more fully explained below, i ?nd the Town was required to afford a moderate amount procedural fairness. [27] A municipal council?s decision is generally reviewable on the reasonableness standard: Catalyst Paper Carp. at paras 18-20. The test is, as stated in Catniysr? Paper Cm?p. at paras 24 and 36, that. a bylaw will be set aside only if the bylaw is one that no reasonable body could have adopted. The reasonableness standard is a ?exible standard that varies in light of the context and nature of the challenged aclt?ninistrative act: at para 23. McLaChlin CJC, as she then was, writing For the Court explains at para 25 how this standard restricts municipal councils: Reasonableness limits municipal councils in the sense that the substance of their bylaws must conform to the rationale of the statutory regime set up by the legislature. The range of reasonable outcomes is thus circumscribed by the purview of the legislative scheme that empowers a municipality to pass a bylaw. [28] Section 539 of the MGA provides that ?[nlo bylaw may be challenged on the ground that it is unreasonable?, which has been interpreted in some cases as equating to a higher level than that of reasonableness. For example, in Nor Chris Holdings Inc. Sturgeon County, 2013 ABQB 134, the Court held that a municipal council?s decision is reviewable on the standard of ?patent umeasonableness?. [29] According to the Applicant, this provision does not forcelosejudicial review of municipal decisions. [30] In my View, the standard of reasonableness applicable in this case must be informed by the wording provided under s. 539, and interpreted in light of the context ol?the particular type of decision?making involved here, as well as all other relevant factors. V. Issues [31] The issues for consideration in this case are as follows: A. i. Was there a violation of section 12.7 of the Town ot?Canmore Procedure! ii. If so, did it result in a breach ofthe Applicant?s right to procedural Fairness? B. i. Did the Town Administration mislead or otherwise misinl?orm Council as to the Flood Risk Analysis? ii. It?so, did it lead to a failure ofConncil to properly consider that risk in determining that the subject parcel was suitable for development? If so, did it result in a breach ol?the Applicant?s right to procedural fairness? i. Did the Town Administration mislead or otherwise misint?orm Council as to the geotechnical screening reports in regards to building on the rock outcrop (Site ii. If so, did it result in a breach of the Applicant?s right to procedural fairness? .0 D. i. Did the Town Administration mislead or otherwise misinform Council as to the need for a third party in the determination that the subject parcel was suitable for development? Page: 6 ii. If so, was the failure to provide such a statement. result in a breach of the Applicant?s right to procedural fairness? E. Was Council?s decision unreasonable because it considered what was to be built on the subject lands rather than the land?s suitability for development"? .P. Was Council?s decision unreasonable because it was based on incomplete, inaccurate and faulty evidence with respect to flood risk, geotechnical screening and environmental screening? [32] During oral submissions, the Applicant speci?cally abandoned the issues raised in his Amended Application with reSpeet to the alleged reasonable apprehension of bias, as well as issues related to the Water Act, RSA 20001 W-3. [33] I will. now turn to each issue. VI. Analysis A. Section 12.7 ofthe Town of Canmorc Procedural Bylaw [34] Section l2.7 of the Procedural Bylaw 04-2013, amended June 17, 2015, provides that ?Council shall not discuss or consider any input from the applicant or members of the public regarding a matter under consideration that is received after the adjoununent of the public hearing held to hear that matter." [35} The Applicant says that there was a violation of the Procedural Bylm-r in this case, because Council received information relevant to the affordable housing consideration from the Developer before the final vote on the Grassi Bylaw Amendment, but after the Public Hearing. The Applicant contends that the violation. resulted in a breach ol?his right to procedural fairness. More specifically, the Applicant maintains that, following the adjournment of the Public Hearing, Councillor McCallum, who also chairs the CCHC, met. with the Developer. According to the Applicant, Councillor McCalltun wrote to the CCHC Board of Directors to petition the Board, on behalf of the Developer, to enter into an agreement relating, to the Peaks olt?Gr-assi. The Applicant?s argument is that, as a result of meetings and negotiations between and the Developer, the parties entered into the CCHC Agreement. Moreover, the Applicant describes as significant the fact that Councillor McCallum executed the agreement on behalf of and that the Mayor of Caninore, John Bon?owman, is also a member of the Board. [36] The Applicant argues that the Developer was not permitted to provide private incentives to councillors to vote in favour of the Grassi Bylaw Amendment given the ?tremendous negative feedback? that was heard at the Public Hearing. Further, the public had no opportunity to provide input on the content of the CCHC Agreement at the Public Hearing, or at any point. thereafter. In the Applicant?s view, the violation of s. 12.7 of the Procedural is especially egregious because of the blatant way in which the CCHC Agreement was utilized to promote the Grassi Bylaw Amendment. [3 7] The Town argues that there is no evidence that any discussions occurred between any member of Council qua councillor and the Developer. it adds that the evidence indicates that several drafts of the CCHC. Agreement were circulated between legal counsel at the direction of Town Administration before being presented to the CCHC Board, but that nothing indicates that Page: 7 Councillor McCallum had any involvement in the negotiations or had a meeting with the Developer related to the CCHC Agreement, whether as a Chair or as a Councillor. [38] The CCHC Agreement was signed after the Public l-learing. It was presented to Council prior to the third reading of the Grassi Bylaw Amendment. During the January 19, 2016 meeting, Council was to ?rst consider the Grassi Bylaw Amendment, followed by the Agreement between the Developer and the CCHC. In fact, after the Agreement was signed, the agenda for the meeting was altered so that a Town of Canmore Brie?ng on the Agreement was addressed first, followed by the consideration of the Grassi Bylaw Amendment. [39] The Agreement included the option that if the perpetually affordable housing units are not under construction by a specific date, the CCHC had the option to acquire Site 1 for a nominal price. The possibility that perpetually affordable housing would never be built was a concern that was raised at the Public Hearing: see for example Record of Respondent at 496, 642, 647, 667, 685, 774, 777, 826 and 859. [40] In his affidavit, Steven I?Irudey, co-owner of a home in the Peaks of Grassi neighbourhood, and President of the Peaks of Grassi Community Association, states that there was a meeting after the Public Hearing between the CCHC and the Developer regarding public affordable housing. He contends that this discussion or input violates s. 12.9 of the Procedural Bylaw-v. He also refers to meetings and to ?Confidential Briefing? notes to the Board of Directors in support of a proposed agreement and which preceded the CCHC Agreement as defined above. [41] I note that the af?ant, Mr. I-lrudey, was not at the alleged meetings and has no personal knowledge that these meetings occurred, let alone what was discussed at the meetings. The notes were posted on the CCHC website and were available for public download despite their ?con?dential.? designation. [42] In the CCHC Confidential Brie?ng dated January 14, 2016, the authors, Mr. Sorllcet and Ms. McCallum (Chair) explain why an agreement was important in the circumstances: What is the rush? in order to provide some certainty to Council that if the bylaw amendment is approved the PAH [perpetually housing] units would be built, the desire is to have this offer and option executed prior to Council considering third reading of the Peaks landing bylaw amendment. The reason for this is that ifthe lands were zoned already and such an agreement and option were not in place, the deveIOpers would be able to renege on their commitment to provide 7 PAH units. [43] Counsel for the Applicant acknowledged during oral submissions that the question as to whether Council can receive information from a party after a public hearing on an informal basis has been considered in the common law context and found to not necessarily create an unfair process: Atkins Calgary (Ciao (1994), 162 AR 97 (CA) at para 14. [n this instance, he contends that ifaffordablc housing was thought to be a desirable goal, the fact that more in that regard was received after the public hearing is inconsistent with s. 12.7 in that there should be no discussions behind closed doors where public input and scrutiny is precluded. [44] 1 am not persuaded that the Agreement is input from the Developer. Rather, it is properly characterized as reassurance from the Developer of its commitment to perpetually affordable housing. The reassurance was given because the application contemplated affordable Page:8 housing, despite the fact that it was a rezoning application and not a development application. As picviously noted, this Issue was speci?cally raised at the Public Hearing. Indeed, the Applicant questioned whether the Developer would even proceed with the ptomised peipetually affordable housing. The Applicant had the 1ight to be heatd and was in tact hea1d at the Public Hearing. In the circumstances oli?this case, the CCHC Agreement is not. input under s. 12.7; it was not a new issue and it addressed one of the concerns speci?cally raised at the Public Hearing as to how the creation of the perpetually affordable housing would actually be ensured or promoted. [45] Even if I am wrong and the Agreement is input under s. 12.7, there is no evidence of prejudice arising From the violation of s. l2.7 in this instance given that the purpose of the Agreement. was to ensure that the concerns raised at the Public Hearing were addressed. [46] In the Court of Appeal addressed the issue of prejudice in the following terms, at para 41: With regard to prejudice, our Court of Appeal in Keefe at para 29 stated as follows: Absent an express statutory statement, no procedural defect should vitiate a proceedings [sic] unless a real possibility of prejudice can be shown or unless the procedure Followed is so devoid o'lithe appearance of Fairness that the administration ofjustice would be brought into disrepute: Bridgeicmd Riverside Association v. Calgary (1982), 37 AR. 26 at para. 28 (C.A.). [47] It follows, in 111 view, that the Grassi Bylaw Amendment should not be invalidated on this ground in any event. [48] The purpose oi the CCIIC Agreement was to add1ess the concerns already raised. at the Public Hearing (See, for example, PSI) Enterprises Lida/itchr Westminster(Crt1) 2012 BCCA 319. In fact, had the IC Agreement been entered after the approval of the Grassi Bylaw Amendment, there would have been no at guablc breach of procedural Fairness unders 1.2. 7. [49] In summary, this argument fails on two grounds. First, I [ind that. there was no violation ofs. 12.7 because the CCHC Agreement did not amount to input. Second, even it? the CCHC Agreement were input, there is no prejudice. Thus, there was no breach of the Applicant?s right to procedural "fairness. B. Flood Risk Analysis [50] The second argument relied upon by the Applicant to invalidate the Grassi Bylaw Amendment relates to the accuracy of the information relayed to Council by the Town Administration and whether it misled or nusinliormed Council as to the Flood Risk Analysis. [51] The Applicant. argues that procedural Fairness was violated because some information regarding the ?ood risk presented to Council was inaccurate. As such, the Applicant relies on the affidavit of Dr. Boone, a professional engineer who owns a home beside one of the parcels that was rezoned for development. Relying on Dr. Boone?s af?davit, the Applicant argues that the Flood risk report, the BCG Report, presented during the Grassi Bylaw Amendment process was incomplete and Faulty, did not address the risks From all the creeks that might affect the area (Le. that might Flood into the Peaks oFGrassi), and that it appears that Council 111istal