Council Grapples with $15M Heating Crisis - London City Council - March 31, 2026

London City Council held a meeting focused on recognizing local achievements, addressing housing regulations, and grappling with a major infrastructure crisis. The council honored astronaut Jeremy Hansen's historic moon mission and passed amendments to short-term rental bylaws. However, the meeting was dominated by frustration over an unexpected $15 million cost to replace heating systems after utility company Enwave discontinued steam service to downtown buildings with minimal notice.

Topics Discussed

ENWAVE STEAM SERVICE CRISIS - $15 MILLION IMPACT: The city faces approaching $15 million in unexpected costs after Enwave decommissioned its steam heating lines serving downtown municipal buildings including RBC Place, the library, and museum. Mayor Morgan expressed "extreme disappointment" with the unregulated utility, stating: "Filing boilers to provide heat to our buildings because a service wasn't able to be continued by a utility that was providing that for multiple decades...that's not a good use of our money." The crisis affects not only public buildings but also private residences and condominiums. Council approved emergency heating system contracts while calling on Enwave to pay the transition costs and advocating for provincial regulatory oversight. The mayor emphasized the opportunity cost: "Every time we spend a dollar on something like this, we don't have a dollar" for other priorities like the downtown plan, economic development, or infrastructure repairs.

SHORT-TERM RENTAL REGULATIONS: Council passed two controversial amendments to the short-term accommodation bylaw. Amendment A (passed 12-3) requires property owners to be physically present on-site for the entire duration of guest stays. Amendment B (passed 13-2) expanded guest capacity from "2 adults with children 2 years or under" to "2 adults with children 12 years or under." Deputy Mayor Lewis supported the age change as "consistent with industry standards in the hotel sector." However, enforcement concerns were raised, with one councilor calling Amendment B "a terrible amendment" and questioning: "We're gonna ask children to produce ID to show how old they are. Do children usually carry ID showing how old they are?" Despite objections, the amended bylaw passed 14-1 because defeating it would have blocked other needed housing protections.

HIGHBURY AVENUE PROVINCIAL UPLOAD: Council endorsed a request to transfer Highbury Avenue South (from Thames River South Branch to the south city limits) from municipal to provincial responsibility. The road was downloaded to the city in 1991 and the current reconstruction project costs $27.5 million. Councillor McAllister's amendment seeks provincial takeover of this critical economic corridor, with London, St. Thomas, and Elgin County aligned in the request. The province has requested formal council endorsements, and Minister Flack publicly supports the initiative. One councillor noted: "This used to be a provincial highway and this could be coordinated much better as a critical economic corridor as a provincial asset."

DEVELOPMENT APPLICATION DISPUTE: A controversial development application in the Old North neighborhood was referred back to civic administration (10-4 vote) rather than proceeding to the Ontario Land Tribunal. The application involves a six-story building at the intersection of a neighborhood connector and neighborhood street. Staff confirmed the six-story height is already permitted under the London Plan. The developer agreed to suspend their OLT appeal for 90 days and revise the application to address parking deficiencies, reduce the building footprint, and reduce unit count. Residents will have another opportunity to comment on the revised application. Councillor Stevenson expressed concern that the six-story allowance "only just came to pass last July" and residents "really didn't have this discussion as to whether they wanted this in their neighborhoods."

HARM REDUCTION SERVICES DEBATE: Council rejected (2-13) a motion that would have restricted city-funded organizations from distributing safe use drug supplies in the downtown core, Midtown, and Old East Village. Councillor Stevenson proposed the restriction to align with London Police Services' "open air drug strategy," but staff indicated the city does not currently fund harm reduction kits through service contracts. The only federal funding stream (Emergency Treatment Fund) expired on the day of the meeting. One councillor called the motion "an ill-conceived, poorly drafted, likely illegal and not practical motion" that would be "a burden on staff." The city solicitor raised concerns about the legal ability to restrict partner organizations' activities outside their contracts with the city.

Motions

Passed: - Recognition of astronaut Jeremy Hansen's Artemis 2 mission - Parks and Recreation Bylaw amendments (Bill 141) - 13-2 - Community Safety and Well-being Plan implementation - 14-1 (police board representation amendment referred 8-7) - Short-term rental bylaw amendments (Bills 134, 135, 140) - 14-1 - Economic Development Strategy - 14-1 - Highbury Avenue provincial upload endorsement - 14-0 - Western Road and Cernney Road infrastructure project with $1.3M contingency - 14-0 - Respectful Workplace Policy and revisions - 13-1 each - Better Homes London program - 13-1 - Smart Commute London - 12-2 - Planning & Environment Committee bulk items - 14-0 - Property acquisition from Robert Klein for $235,720 - 12-0 - Wellington Gateway and East London Link infrastructure projects (Bills 147, 148) - 11-2 - Business licensing bylaw amendments - 13-1

Rejected: - Referral of Parks and Recreation Bylaw to 2026-2027 comprehensive review - 2-13 - Motion restricting harm reduction kit distribution - 2-13

Referred: - Police Service Board representation on Community Safety implementation working group - 8-7 - 929 Cheapside Street development application - referred back to civic administration - Development application in Old North neighborhood - 10-4

Attendees

Present: Mayor Morgan, Deputy Mayor Lewis, Councillors Cuddy, Ferrer, Frank, Hillier, Hopkins, Layman, McAllister, Pribble, Ramen, Stevenson, Tro, Trusau, Van Mierlo-West

Participating online: Councillors Mallister, Pribble, Stevenson, Hillier, Pelosa (at start of meeting)