The town of Niagara-on-the-Lake agreed to support the Parliament Oak developer in its fight with Niagara Region, sending a letter to them to support their efforts to reduce their development charges by $804,573.
Council agreed to support the request, though not unanimously, during its last committee of the whole meeting, in a 5-3 vote.
The developer of the proposed five-star Parliament Oak hotel on King Street asked council to help out in its fight against what it considers excessive development charges from Niagara Region.
Lawyer Tom Richardson represented Two Sisters Resorts Corp., the company behind the Parliament Oak project, at the meeting.
Initially, he told council, the region charged $4,784,992 in development fees. Those fees went up by the $804,573 after the developer and the town agreed to add 43 spots to a second layer of underground parking, boosting the total number of spots to 248.
All parking except the accessibility spaces will be underground, Richardson said.
He asked council to support the project by advocating for the region to waive the additional fees.
He argued that charging for underground parking doesn’t match how several other municipalities in Niagara have approached similar developments.
“I mentioned 10 or 12 municipalities with no development charges for underground parking,” Richardson said, pointing to Fort Erie and West Lincoln as exceptions.
Richardson noted that the regional fees come on top of nearly $989,393 in development charges from the Town of NOTL, which the developer does not dispute.
“We take no issue with the town’s development charges,” he said.
Council was divided on the request during the meeting last Tuesday.
At first, Coun. Erwin Wiens questioned the purpose of Richardson’s presentation.
“What is the ask you’re asking for specifically?” he said. After hearing the explanation, Wiens followed up: “You have a beef with the region, and you’re asking us to support your beef?”
Richardson hesitated to use the term “beef” but confirmed that he was seeking the town’s aid.
Despite his pointed questions, Wiens ultimately supported sending a letter to the region advocating for it to lower the charges.
Coun. Gary Burroughs raised concerns about whether the town would be overstepping, asking, “How often do we tell the region how to do their work?”
In response, Wiens said it is not uncommon for the town to send letters to other levels of government, including the provincial and federal governments advocating for the town’s interests, so it should not be out of bounds to talk to the region.
Burroughs also brought up issues with stormwater management during the parking lot development.
Ultimately, he abstained from the vote.
Coun. Andrew Niven, who voted against sending the letter, asked about the legal implications of supporting the request. Chief administrative officer Nick Ruller said he didn’t know.
Coun. Sandra O’Connor also opposed it, saying it’s unusual for the town to advocate for a single business rather than the broader community.
“I don’t think we should go to the region and advocate on behalf of any particular business or developer,” she said. “I see this as setting a precedent.”
Coun. Maria Mavridis disagreed, saying a precedent was already set in her first month or two on council with the Clayfield Hotel project in the Garrison Village. They asked for development charges to be paid until after the project was completed, which she saw as analogous to this project.
She also cited provincial funding for the Royal George Theatre as an example of supporting a specific business. Mavridis voted in favour.
Coun. Wendy Cheropita also supported the letter, saying it’s necessary to direct its attention to the region.
“We should go to the region because that’s the only way to do it,” she said.
Couns. Adriana Vizzari and Tim Balasiuk also voted in favour. Lord Mayor Gary Zalepa was absent.
Ron Simkus, a director with the NOTL Residents Association, opposes the Parliament Oak development. He said building a five-star hotel in a residential area is poor planning and argued the developer is not being unfairly treated.
“Is the Niagara Region justified in applying a high premium to capital cost and risk? Absolutely,” Simkus wrote in an email to The Lake Report.
Although speaking for himself, Simkus said members of the association are also questioning the project’s future.
“The question on everyone’s minds is, ‘Where is this going?’” he said.
Regional Coun. Andrea Kaiser, when asked about her thoughts on lowering the development fee for the Parliament Oak project, said she’s not taking a position on the matter.
The original Parliament Oak hotel proposal was approved in June 2024. The site, formerly home to a public school, was controversially rezoned from residential to commercial to allow for the development.
Richardson said the project’s site plan is close to being finalized with town staff.
