• Urban area boundary expansion on prime agricultural land
• Appropriate locations for urban area boundary expansion

Following a comprehensive review of Pelham's urban land needs and consideration of several candidate areas for urban expansion of the Fonthill Community, the Town of Pelham and Region of Niagara adopted Official Plan Amendments to expand the urban area in the Fonthill community. Mori Nurseries, the largest landowner in Candidate Area 1, appealed both amendments to the Ontario Municipal Board for failing to include Area 1. Both Councils subsequently adopted amendments to add the developable part of Area 1 to the urban area. All four amendments were appealed to the Board by the Preservation of Agricultural Lands Society (PALS).

After filing a site-specific application to include Area 1 in the urban area expansion, Mori Nurseries retained Clayton Research in 1997 to assess the need for additional residential land in Pelham's urban area and the merits of Area 1 versus other candidate areas for urban expansion. The analysis concluded that the Town had underestimated the need for additional residential land, and that Area 1 was the preferred area for expansion as it could better address a potential short term housing supply shortfall and had a more favourable cost-benefit relationship.

Area 1 was not included in the urban area expansion approved in 1997, but the Town and Region continued to process the site-specific application for Area 1. At the Region's request, Clayton Research updated its report in 1999 and found that the market support for designating Area 1 urban was even more compelling. The developable part of Area 1 was then designated Deferred Urban Residential Area by the Town of Pelham (to provide a mechanism to address natural heritage issues) and Urban Area by Regional Council over the objections of Regional Planning staff.

Robert Feldgaier, Vice-President of Clayton Research responsible for residential studies, worked with consultants for Mori Nurseries, the Town and Region to defend the urban area expansions at the Ontario Municipal Board.

Mr. Feldgaier gave evidence that:

• There was market support for all areas previously approved for urban area expansion in Pelham;
• The policies of the Regional Niagara Policy Plan and Provincial Policy Statement, when read and interpreted together and in their entirety, permit urban expansion onto prime agricultural areas; and
• Demand for new housing in Pelham should be addressed in Pelham if it can be accommodated there, rather than by designating lands elsewhere in the Region as advocated by PALS and Regional Planning staff.

Mr. J.L. O'Brien and Mrs. M. Hubbard, of the Ontario Municipal Board panel which heard this case, approved all of the urban area boundary expansions and dismissed the appeals by PALS. The Board concluded that:

• "There is a clear and demonstrated need to provide land for the projected future residential…growth of Pelham."
• "The Provincial Policy Statement does not prohibit expansions of urban areas onto prime agricultural lands."
• "Pelham is not required, pursuant to any policy document, and a reasonable interpretation thereof, to examine sites outside its boundaries to satisfy future growth needs."

OMB File No. PL980963