Offsite Levy Bylaw Ruling Underscores the Need for a More Transparent and Collaborative Approach
The Alberta Land and Property Rights Tribunal (LPRT) has ruled that the Town of Canmore’s Offsite Levy Bylaw 2020-27 (OSL Bylaw), passed in March 2024, was unlawful and is therefore invalid in its entirety. The Tribunal found that the Town failed to meet its legal obligations under the Municipal Government Act (MGA) and associated regulations, particularly with respect to transparency and disclosure during the public consultation process.
What Is an Offsite Levy?
Offsite levies are charges collected from developers to help pay for infrastructure that supports new growth, such as water, wastewater, and transportation systems. These levies must be calculated and applied in accordance with provincial legislation, and must be based on clear, disclosed data that demonstrates a fair allocation of costs between existing residents and new development. More background and information can be found here.
What Did the Tribunal Find?
The Tribunal found that the Town included at least $85 million in infrastructure projects that were either premature, unsupported, or incorrectly allocated.
These included:
$4 million in misallocated costs between the Town, Deadman’s Flats, and developers.
$10 million for a proposed third primary clarifier at the wastewater treatment plant, which the Town later acknowledged was not required following a 2024 stress test. Despite this, the project remained in the bylaw and the Town has continued to collect levies for it.
$71 million for a Wastewater Treatment Plant (WWTP) Discharge Limit Upgrade, which the Tribunal found was premature to include, as the Town had not yet selected a design or obtained the necessary approvals.
In addition to these specific project issues, the Tribunal found that the Town failed to meet its legal obligations to disclose the calculations, assumptions, and data used to determine the offsite levy rates, information that must be made publicly available during the consultation process under the Municipal Government Act. This lack of transparency prevented meaningful input from stakeholders and was a key reason the bylaw was struck down. The Tribunal also reaffirmed that, under existing legislation, there must be a clear and lawful connection between the levies charged and the benefits to new development. While it did not issue new directions on this point, because the bylaw was declared invalid in its entirety, the Tribunal emphasized that this requirement is already embedded in law and must be addressed through the public consultation process before a new bylaw can be passed.
Why This Matters
The Tribunal’s decision is not just about technical errors; it is about process. The ruling reinforces that municipalities must follow the law, disclose how levies are calculated, and engage in good faith consultation with those affected. The Tribunal emphasized that these requirements are not optional, and that municipalities must arrange their affairs, including contractual relationships with consultants, to comply with the law.
BOWDA’s Role and Response
BOWDA and the other appellants are satisfied with the Tribunal’s decision. However, we are disappointed that it took a formal appeal to achieve what could have been resolved through open dialogue and collaboration. Prior to the bylaw’s passage, BOWDA wrote to the Town and Council multiple times, offering to work together to address concerns. Those offers were declined, leaving no option but to appeal, ultimately adding unnecessary legal costs to the Town of Canmore taxpayers and the development community.The Tribunal’s decision validates that appeal and confirms that the bylaw was not compliant with the MGA. It also highlights the importance of early, transparent, and inclusive engagement, something we believe benefits everyone in the community. The Town has since issued a public statement in response to the Tribunal’s decision. While we encourage everyone to read it (Town Statement July 11th), we believe it is important to provide a fuller picture of what the Tribunal found. The ruling clearly identified serious legal and procedural shortcomings in the bylaw process, particularly around transparency, disclosure, and the inclusion of unsupported project costs. These are not minor technicalities; they go to the heart of what the law requires.
A Shared Vision for Canmore
Developers are proud to contribute to the infrastructure that supports Canmore’s growth. We believe in paying our fair share, and we are committed to building a vibrant, sustainable, and inclusive community. We do, however, expect transparency, fairness, and professionalism in return. While there has been a history of tension and conflict between BOWDA and the Town, we’ve also seen recent examples of successful collaboration that give us hope. These moments show what’s possible when we engage early and openly, work together respectfully, with honesty and transparency on all sides. We believe that this decision by the Tribunal can be a turning point, not just a correction of past missteps, but a foundation for a better way forward. We believe that a better business and community environment is possible, one where Council and Administration respect the roles that all stakeholders play in shaping Canmore’s future. That includes focusing on facts, listening, sharing information, and working together in good faith and BOWDA is committed to its role and responsibility to this process.
Next Steps
BOWDA and the other appellants have reached out to the Town to begin discussions on a new bylaw that fairly and lawfully allocates infrastructure costs. We’re ready to engage in a renewed process, one that is grounded in transparency, respect, and shared purpose, and we’re hopeful that Council is equally committed to that path forward.