No it can't in Canada. The town appears to be arguing that there were public declarations but the specific process was not followed. Most municipal bylaws are viewed as pro forma quasi legislation.

That means that the by laws tell you not only what is required but the exact form or process that must occur. I used to make applications to court under similar legislation and if I did not follow the exact process (down to forms) it was thrown out.

What a judge will have to review is the entire process and determine if process and was adhered to. If there is a technical breach they can invoke their inherent right of equity to ensure a just outcome.