The developer behind a large student housing project says it’s been forced to pause the start of construction due to a disagreement with the City of Guelph over development charges. Forum Asset Management, the developer, said the city’s decision to charge over $15 million in development charges makes the project “economically unviable” without significantly raising costs for students. Forum Asset Management received approval from the city to construct two buildings featuring 587 beds. This is phase two of a project started at 601 Scottdale Drive in Guelph. Phase one saw the former Holiday Inn hotel converted into 177 units of student housing. The land at 601 Scottsdale Drive is owned by the University of Guelph. The lease stipulates that housing is meant for University of Guelph students, but the buildings are not owned or operated by the university. According to the City of Guelph and the developer, no development charges were levied during phase one of the project. The city said phase one was approved under the bylaws in effect at the time, they say the development charges bylaw was updated in 2024 and under the new rules phase two will be subject to charges. According to Forum, the change represents a reversal by the city’s finance and legal departments. They said because the university owns the land and the buildings will be used exclusively by the school’s students, that it qualifies for a development charge exemption. The city disagrees with that interpretation. Construction was scheduled to begin in April 2025. In the letter to the city, Forum’s lawyer points out the school has a 1,300 student waitlist for first year residences and there is a broader rental housing shortage in the city. The City of Guelph says development charges are necessary to cover the cost of new infrastructure that is required when new homes or businesses are created. Those charges help pay for things like road, sidewalks, water and wastewater infrastructure. Forum has filed an official complaint with the city that will be addressed in council on May 15th.
