Lunenburg Appeals Board Ruling on Housing Project Despite Developer's Shift to Co-op Plan
The Town of Lunenburg is asking the provincial Court of Appeal to overturn a regulatory board decision that reversed council's rejection of a rezoning application. Although the developer has since pivoted to an as-of-right affordable housing co-op, the town says it will continue the legal battle, which is expected to cost an additional $30,000 to $35,000.
The Town of Lunenburg is pursuing an appeal against a Nova Scotia Regulatory and Appeals Board decision that overturned the town council’s rejection of a rezoning application for a market-rate housing project, even though the original proposal is no longer moving forward.
Last year, Lunenburg town council rejected a pitch from Solterre Design to rezone land for a 50-unit market-rate building, defying municipal staff advice. In July, the Nova Scotia Regulatory and Appeals Board overturned that decision, stating the council failed to reasonably carry out the intent of Lunenburg's planning strategy. The town is now asking the provincial Court of Appeal to quash the board’s ruling.
Since the initial rejection, the Mahone Bay Community Land Co-operative announced it is working with Solterre Design to build a 44-unit apartment building in Lunenburg. The proposed co-op building ranges from three to six storeys and qualifies as an as-of-right development under current planning rules, meaning it does not require council approval.
Despite the shift in the project, Mayor Jamie Myra stated the town will continue the appeal until the court matter is resolved. Myra said council declined to meet with the housing co-op about the new project on legal advice while the litigation remains unfinished. He claimed the new co-op proposal is a good fit and different enough to warrant the continued appeal of the old rezoning decision.
Solterre co-owner Jennifer Corson disputed that characterization, stating there is virtually no difference between the two designs and criticizing the town for continuing the litigation.
The town's grounds of appeal allege the board erred in law regarding traffic, pedestrian safety, flooding, drainage, and the interpretation of its role as steward of the UNESCO World Heritage Site. However, the appeals board found no evidence to support flood risk concerns and accepted staff assessments that the original project would not impact the heritage designation.
A recent staff report estimates the ongoing appeal will cost Lunenburg about $30,000 to $35,000, in addition to roughly $92,100 already spent on the initial board process. The appeals court hearing is currently set for late January 2027.