What is the test for good faith in a municipal by-law?

Good faith remains a central foundation for the validity of a municipal by-law enacted in conformity with the municipality’s powers. See Grosvenor v. East Luther Grand Valley (Township) (supra) at para. 41. The onus of proving the absence of good faith in the passage of a by-law rests on the party which asserts it. In my opinion, the applicant has failed to establish that the respondent did not act in good faith in repealing the designation by-law in issue. The respondent did not exercise its powers unfairly or to serve private interests at the expense of the public interest. While there was unusual haste in passing the repealing by-law if that is measured from when the respondent became aware of its lengthy oversight, that haste is not an indicator of bad faith, in my opinion. The rapidity with which the respondent ultimately moved was, like the retroactive nature of the repealing by-law, its attempt to comply with what the Ontario Heritage Act required. Viewed in that light, the rapidity with which it ultimately moved is evidence of its good faith.