Tribunal decision clears the way for major three-tower condo project at former Preston Springs Hotel

The Ontario Land Tribunal has cleared the way for a development at the site of the former Preston Springs Hotel in Cambridge. CTV’s Heather Senoran reports.

The Preston area of Cambridge could look very different in the future now that the Ontario Land Tribunal has ruled in favour of a developer.

Haastown Holdings Preston wanted to build three mixed-use residential towers at 102 Fountain Street South, 134 and 144 Fountain Street North and 199 Abraham Street. The area was formerly home to the Preston Springs Hotel.

The proposed buildings from Haastown Holdings were originally intended to be 22, 24 and 26 storeys tall, featuring a total of 753 units.

People living nearby took umbrage with the plan, saying the size was inappropriate for the area and increasing density in the neighbourhood would cause traffic congestion.

The project went through several iterations as the developer worked on changes to the plan.

Despite the developer paring the tower heights to 22 storeys, 20 storeys and 18 storeys,in 2024 city council passed a motion to cap the development at 15 storeys and only allow two towers instead of three.

At the time, Cambridge City Councillor Scott Hamilton was the sole vote against the cap.

“What troubled me is that the current development Haastown had set forward had gone through the blueprints, the designs, the public meetings, the engagement with staff. And so, council revised those plans to come up with something completely new on the fly. I paused and said, we’ve got to slow down here. I’m not sure if this plan will work,” Hamilton told CTV News on Friday.

Ontario Land Tribunal decision

Haastown Holdings decided to appeal council’s decision through the Ontario Land Tribunal (OLT).

The OLT ultimately sided with the developer in several key areas of contention, including traffic, compatibility and heritage conservation.

“The site will help frame and bring street life back to the inviting heritage building at 138 Fountain Street South,” the OLT decision read.

As for traffic concerns, the decision noted the buildings would be 550 m from a planned ION station and adjacent to existing Grand River Transit bus services along Fountain and King.

The OLT also said Haastown Holdings lowered the height of the north tower from 18 storeys to 17 storeys in its final request. The latest plan includes 635 units.

The document included an opinion from an urban designer, Evelyn Thomas, who said denying the plan for taller towers, with separations between each structure, could instead result in slab buildings on larger floorplates. Thomas believed Haastown Holdings’ design allowed for more sky view, less shadow and “a more pleasant, current design.”

The developer can now more forward with its plan to build the towers.

Response

Counc. Scott Hamilton said he is pleased there will be movement on the site after years of debate about the development.

“Right now, it’s an empty lot. It’s been described as an eyesore. And so I think what this developer has proposed, although it’s different than what’s come before it, I still think it will be great,” he said.

The decision does not sit well with everyone.

The OLT also dismissed an appeal from Preston resident Glen Nyhus, who has been lobbying against the project for years.

Nyhus represented himself at the hearing and hired expert witnesses in traffic, land use planning, and heritage.

“I thought we’d mounted some really good arguments,” Nyhus told CTV News. “I’m disappointed in the none of those [arguments] seemed to carry much weight in the final decision. But having said that, I mean, it was a three-way fight – the city, the developer and us.”

Nyhus said the process was possible thanks to community donations. He said it cost around $60,000.

He admitted that this is likely the end of his fight to stop the development as he worries he would not be able to sway the OLT if he appealed the decision.

“I’m not sure if the OLT is pro-development as much as it’s whoever has the money to pay for the experts and the legal costs tends to win the argument, I think,” said Nyhus.

Meanwhile, a statement from Cambridge Mayor Jan Liggett confirmed the city has received the decision.

“The OLT’s decision differs from the position taken by myself and Council. While I’m disappointed by the outcome, the OLT is the final authority under provincial legislation,” it said.

“I along with Council remain committed to advocating for responsible growth in Cambridge, for community input, and planning decisions that reflect the best interest of residents and the city as a whole,” the statement concludes.

However, the developer is excited to get to work.

“I am pleased that after the many years of time, money and effort spent to design and articulate the type of project that this very important gateway site deserves, that the OLT agreed with Haastown’s vision supported by its entire team of seasoned professionals, together with City of Cambridge planning staff and the Region of Waterloo,” Paul de Haas, president of Haastown Group of Companies, said. “As clearly recognized by the OLT, the approved development is an appropriate and well-designed project that will serve as a catalyst for growth and infrastructure in the Preston core and the Preston Major Transit Station Area.”

He added it was disappointing to see how the process was handled.

“It is unfortunate that after years of close collaboration with City staff including the implementation of changes resulting from public consultation, that even with a recommendation from staff to support the project, that certain members of Cambridge Council did not agree and in turn forced a very lengthy and costly hearing both for us and the City of Cambridge taxpayers. We were particularly disappointed the City refused our public offer to settle and, more importantly, never offered any compromise position or even a counter-offer that would allowed for negotiation," he said.

He concluded by saying he is looking forward to putting the past behind them and moving forward.

At this time there is no timeline for construction to get underway.