Niagara-on-the-Lake, Ontario is facing a growing dispute over a planned hotel development, with residents voicing concerns about potential flooding and alleging a lack of transparency from both the developer and local authorities.
The proposed Parliament Oak Hotel, slated for a former school property at 325 King St., has sparked debate over its impact on the picturesque town’s infrastructure and character.
- The four-story hotel is planned to include 130 suites, event space, a restaurant, and a bar.
- Residents worry the project will exacerbate flooding risks due to its impact on groundwater flow.
- The developer, Two Sisters Resorts, has received ten bylaw infraction fines related to the construction.
- Regional councillors recently waived over $900,000 in development charges for the project.
- A formal complaint has been filed with Ontario’s ombudsman alleging improper conduct.
What are development charges, and why is the waiver controversial? Development charges are fees paid by developers to cover the cost of infrastructure improvements needed to support new construction. The recent decision to waive over $904,819 in charges for the Parliament Oak Hotel has raised questions about fairness and potential costs to Niagara taxpayers.
Ron Simkus, a retired professional engineer and mining executive, has been leading a group of residents in analyzing the development plans. “We got together and said, ‘Holy God. This thing is so thin,’” Simkus recalled, expressing concern about the project’s design. He explained that constructing the hotel and its underground parking requires diverting significant amounts of groundwater into nearby One Mile Creek, which runs alongside approximately 90 homes, potentially increasing the risk of flooding.
Two Sisters Resorts has not responded to requests for comment. However, the developer states on its website that its site servicing strategy will “ensure no negative impacts to the existing sewers and water supply.”
Niagara-on-the-Lake Lord Mayor Gary Zalepa stated that town staff have reviewed the developer’s plans and have no concerns. “I’m really confident we’ve landed in a good place,” Zalepa said.
Town Issued Ten Fines to Developer
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Resident Lyle Hall, who lives about 150 metres from the development site, and Simkus have also raised concerns about alleged bylaw violations. According to Niagara-on-the-Lake spokesperson Marah Minor, as of December 18, 2023, the town had issued ten $500 fines to the developer. In September, two stop-work orders were issued for excavation and soil removal without the necessary permits.
Hall claimed that work continued on the site despite the stop-work orders, and he believes the town has not adequately enforced the bylaws. However, Minor stated that the development is now in compliance and a conditional building permit for the foundation has been issued, allowing construction to proceed.
Nearly $1 Million in Development Charges Waived
Simkus, who is also a director with the Niagara-on-the-Lake Residents Association, is part of a group calling for an investigation following a November 20, 2023, regional council vote to waive $904,819 in development charges for the project. Development charges are one-time fees developers pay to municipalities to fund infrastructure improvements.
During the November meeting, a lawyer representing Two Sisters explained that Niagara-on-the-Lake required the developer to build an additional level of underground parking, prompting the request for a reduction in regional development charges.
Simkus argued that the developer should have anticipated the need for additional parking based on earlier site plans. Zalepa, who voted to waive the fees along with Niagara Falls Mayor Jim Diodati, stated that discouraging developers from building underground parking would be counterproductive, given the region’s efforts to promote such construction.
Some regional councillors questioned whether waiving the charges would shift the financial burden to Niagara taxpayers. Staff are preparing a report on the potential financial implications, Zalepa said.
Hall believes the decision demonstrates a bias towards developers and a lack of responsiveness to residents’ concerns, potentially setting a problematic precedent. Simkus echoed this sentiment, arguing that the developer’s alleged bylaw violations should have disqualified them from receiving a fee waiver.
Zalepa maintains that the fines and the development charge relief are unrelated matters.
Residents Seek Ombudsman Investigation
On December 20, 2023, Stuart C. McCormack, a director with the Niagara-on-the-Lake Residents Association, sent a letter to Ontario’s ombudsman alleging that the regional council’s decision was based on “misinformation” and “improper considerations” and exceeded its authority. CBC Hamilton has reviewed the letter and requested confirmation from Ombudsman Ontario that it was received. Spokesperson Linda Williamson stated that the watchdog’s office does not comment on pending complaints.
Zalepa stated on December 22, 2023, that he had not yet seen or heard about the complaint and therefore could not comment on it.
