Inside Forum Asset Management's $15.5M Development Charges Battle In Guelph

A major student housing project in Guelph has hit a roadblock due to a $15.5 million development charge imposed by the city. Forum Asset Management, the Toronto-based developer behind the ALMA @ Guelph project, announced in April 2025 that it was pausing construction on the second phase of the development. The company argues that the unexpected fee makes the project financially unfeasible without significantly increasing costs for students.

The ALMA @ Guelph project, located at 601 Scottsdale Drive, is a two-phase development aimed at providing student housing near the University of Guelph. Phase One involved converting a former Holiday Inn into 177 student beds and was completed in 2023 without incurring development charges. Phase Two plans to add two seven-storey buildings with 489 units, totaling 587 beds. Forum contends that the city's decision to impose development charges on Phase Two represents a reversal of its previous stance and undermines the project's viability.

The City of Guelph maintains that the development charges are justified under its 2024 Development Charges By-law. While Phase One was approved under the 2019 by-law, which exempted university-related developments, the updated 2024 by-law narrows the definition of "University Land" to include only properties intended for direct university use. The city argues that since the University of Guelph is leasing the land to Forum and does not directly operate the housing, the exemption does not apply.

Forum has filed a formal complaint under Section 20 of the Development Charges Act, asserting that the student housing serves a university-related purpose and should be exempt. The company emphasizes that the housing is exclusively for University of Guelph students and that the university has design approval rights. However, the city counters that Forum, not the university, will manage the property and benefit financially, making the development subject to charges.

In May 2025, Guelph City Council reviewed and ultimately dismissed Forum's complaint, stating that the purpose-built rental units are not exempt from development charges. The city noted that the project is already eligible for an estimated \$2.6 million discount under the Development Charges Act. Additionally, Forum could receive a full exemption if it commits to renting the units at or below the province's affordable rental threshold for 25 years.

Forum has until July 8, 2025, to appeal the decision to the Ontario Land Tribunal. The outcome of this dispute could have broader implications for how municipalities apply development charges to private developments on university-leased land, especially amid ongoing concerns about student housing shortages in cities like Guelph.