A municipality is reviewing a subdivision application for a 320-acre parcel of land into 80-acre rural residential lots. The land is designated 'Agricultural' in the Area Structure Plan. The developer proposes to create a new road access and requests a waiver of municipal reserve dedication, offering cash-in-lieu. What is the most significant challenge the developer faces, and what document needs amendment first?

Question: A municipality is reviewing a subdivision application for a 320-acre parcel of land into 80-acre rural residential lots. The land is designated 'Agricultural' in the Area Structure Plan. The developer proposes to create a new road access and requests a waiver of municipal reserve dedication, offering cash-in-lieu. What is the most significant challenge the developer faces, and what document needs amendment first?

Answer options:

• Obtaining environmental permits; Environmental Protection and Enhancement Act.
• Securing utility services; Utility Services Agreement. ✅ Compliance with the Area Structure Plan (ASP); The ASP must be amended to allow for rural residential development.
• Market acceptance of the large lots; A market study justifying the lot sizes.

Correct answer: Compliance with the Area Structure Plan (ASP); The ASP must be amended to allow for rural residential development.

Explanation: Area Structure Plans (ASPs) provide a framework for future development in an area. If the land is designated 'Agricultural' and the proposal is for 'rural residential,' the ASP would need to be amended to reflect the intended land use before subdivision approval can proceed, as development must conform to these higher-level planning documents.