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Originally Posted by you&me
I'm not sure of the specifics of Mt Royal, but lots of areas have restrictive covenants registered. As mentioned previously, these covenants supercede zoning by laws and will endure any changes to them... removal of a covenant is possible, but is also a long and expensive process, so typically people will avoid the hassle in favour of lower hanging fruit... Which will be most of the rest of the city under the proposed zoning changes.
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I do note that Ontario in 1990 amended it's Land Titles Act where all restrictive covenants that had no expiry date would automatically expire 40 years after the covenant was enacted which basically nuked all the old restrictive covenants. So certainly there's a political way to deal with restrictive covenants.