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A proposed affordable housing project in Lunenburg, N.S., has left the town fighting a court battle over an earlier design that is no longer happening.

The Mahone Bay Community Land Co-operative announced earlier this week that it is working with Solterre Design to bring a 44-unit apartment building to Lunenburg.

The proposed co-op building ranges from three to six storeys. As an as-of-right development, it fits current planning rules and does not require council approval.

Last year, town council defied municipal staff’s advice and rejected Solterre’s pitch to rezone the land for a similar 50-unit market-rate building.

The Nova Scotia Regulatory and Appeals Board overturned council’s decision in July, saying it 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.

A white man with short grey hair, stubble and glasses wears a grey blazer while standing in an office

Lunenburg Mayor Jamie Myra says the municipality plans to continue its appeal of a recent appeals board decision over a rezoning application that is no longer being pursued. (CBC)

Lunenburg Mayor Jamie Myra said although the co-op asked to speak with councillors about the new project a few weeks ago, council declined on legal advice.

Myra said it would be unfair to abandon the appeal when the town is already midway through the process.

He said council could discuss halting the appeal in camera, with any decision disclosed during a public meeting.

“We certainly probably have an option of withdrawing that appeal. I don’t know all the details of that because … we have not officially talked about this as a council or with staff yet,” Myra said.

Asked why the town is continuing the appeal, Myra said council “wanted some answers” about the board’s decision.

The town’s grounds of appeal allege the board erred in law in four ways, including how it interpreted planning rules around traffic, pedestrian safety, flooding and drainage, and a failure to “respect” council’s role as steward of the town’s UNESCO World Heritage Site.

A waterfront with bright red wooden buildings, and colourful homes behind it

The Town of Lunenburg is expected to spend about $30,000 to $35,000 in court costs for its ongoing appeal. (Taxiarchos228)

The board decision accepted town staff’s assessment that the original Solterre project would not impact the heritage designation as it fell outside the buffer zone. It also found no evidence to support flood risk concerns.

Myra acknowledged that council cannot stop an as-of-right proposal like the co-op project, which he called a good fit for the town.

“In my opinion, obviously if [they had come] to us right off the bat with this proposal, it would probably [already be] moving forward,” Myra said.

Solterre co-owner Jennifer Corson called the mayor’s comment confusing. She said there is “[virtually] no difference” between the two designs.

“[Council’s] role is not to say who the owners of a private property are, but to allow for development following their bylaws,” Corson said.

Corson said Solterre applied for a development permit for the co-op’s design months ago. Once approved, the group can apply for federal funding.

A 2D drawing shows a three storey building on the street side, stepping up to a six-storey building, with people walking along the streetscape.

A rendering of the 44-unit apartment building planned by the Mahone Bay Community Land Co-operative and Solterre Design for the corner of Falkland and Brook streets in Lunenburg, N.S. (Solterre Design)

A Lunenburg resident, Corson said she is left “paying taxes to fight myself” as the town’s appeal continues.

“I think we would all love just to get to work building housing, and not to be in litigation and in legal fees,” Corson said.

Lunenburg’s appeals court hearing is currently set for late January 2027.

A recent staff report estimates the appeal will cost Lunenburg about $30,000 to $35,000, on top of the roughly $92,100 spent on the initial board process.

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