I'm not advocating here......... rather I would seek to point that nominally, through the Greenbelt MZO scandals, the Ford government created billions in paper wealth, it then rescinded that same wealth by statute/regulation, without compensation.
The original Greenbelt, created by Dalton McGuinty did some of the same, in that it did downzone some lands, and precluded upzoning of others, also without compensation.
It is generally accepted law in Canada that governments have the unfettered right to regulate land use.
In the context of an airport, also one needs do is make the current use illegal.
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That said, nothing so severe need be done. The only commercial airline at Billy Bishop flies only primarily or exclusively the Q400; the government can tax their purchase or lease, or apply a new tax for all short-haul flights that would inordinately impact said carrier.
They could also, as the effective force of control of the GTAA, choose to lower the cost of using Pearson such as to make BBTCA noncompetitive. There are so many ways to effect an outcome.
I thought I would give a look-see as to other legislation/jurisprudence. I found this of interest:
View attachment 609468
Source:
https://www.albertalandinstitute.ca...guide/are-property-rights-protected-in-canada
There was a 2022 Supreme Court ruling involving Halifax and a land assembler/developer in which the SCC ruled in a split decision, 4-3, that there was a basis for a claim of constructive land taking and compensation. But the ruling was only one which ordered that the case go to trial, not one which decided the facts of the case.
Looking at the judges who made the ruling, those who dissented and the current composition of the court, I believe the decision, such as it was, would likely be overturned if it wound up before the SCC again.