It is a significant decision in Hamilton. The Ontario Land Tribunal has approved the removal and replacement of a wetland in order to permit an airport-related industrial-commercial subdivision on 31.38 hectares at 3054 Homestead Drive, 9166 & 9174 Airport Road.
Fengate Homestead Holdings Inc. LP plans to construct a five-building industrial subdivision that will house airport-related businesses and employment uses.
The primary disagreement between the developer and the City of Hamilton was about the relocation of an existing 1.1 hectare unevaluated wetland which flows out towards Lake Niapenco and eventually the Welland River.
Fengate proposed to create a larger replacement wetland of 1.54 hectares. The City preferred to retain the existing wetland in its original location.
Critically, in favour of the developer, the federal Department of Fisheries and Oceans “determined that the proposal before the Tribunal will not cause the death or harmful alteration of fish habitat and that no federal authorization would be required” and the Niagara Peninsula Conservation Authority granted conditional approval for the wetland relocation.
Both agencies have specialized expertise and experience in natural heritage matters that is greater than the City’s internal staff have.
The developer argued the replacement wetland would provide a net ecological gain of 0.44 hectares.
OLT Member Steve DeBoer ruled in favour of the developer’s proposal, finding the experts and evidence submitted by Fengate to be convincing.
“The Tribunal finds that the proposal before it maximizes the use of the Subject Lands while providing the best alternative solution by increasing the size of the wetlands and providing proper mitigation measures that will not harm habitats downstream,” DeBoer wrote at paragraph 118.
“The Tribunal finds that the Appellant has demonstrated that the proposed changes to the Natural Heritage features will allow for an efficient development to occur while balancing the need for an effective wetland that will not harm any existing downstream habitats,” DeBoer continued.
With this determination, DeBoer determined the proposal meets all tests of the Planning Act, “is in the public interest,” and “will provide needed employment opportunities to the area.”
Decision Noteworthy in Relation to Garner Road Marsh
The Ontario Land Tribunal will decide next year on a similar commercial business park application which proposes to relocate another wetland.
The owner of 140 Garner Road wants to construct a business park, and is proposing to relocate a wetland as part of the proposal.
A key difference in this case is the property is within the watershed of the Hamilton Conservation Authority (HCA).
The application was denied by the HCA Board of Directors in 2021. The denial was appealed to the Ontario Land Tribunal.
In the early stages of that appeal, the OLT granted Party status to Environmental Defence. In effect, the wetland had its own lawyer.
In Fall 2023, Bill 23 (More Homes Built Faster Act), the Ontario Conservative government removed many protections for wetlands.
Following the passage of Bill 23, the developer of 140 Garner Road withdrew their appeal of the HCA denial, and resubmitted their plans anew to the HCA.
This enables the developer to benefit from the Bill 23 changes.
The “new” application is expected to be formally denied by the HCA Board of Directors.
The OLT’s decision regarding 3054 Homestead Drive, 9166 & 9174 Airport Road shows the Tribunal will permit wetland relocations.
The 140 Garner Road contested hearing is scheduled to begin on Tuesday, February 17, 2026 and is booked for nine days.
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Published: September 7, 2025
Last updated: September 7, 2025
Author: Joey Coleman
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