Developers try to bypass city hall
Solowave Investments seeking approval for highrise towers on former Kraus carpet factory site
A dispute has erupted over plans to put 12 highrise towers on the site of the former Kraus carpet factory, complicating Waterloo’s efforts to move past its housing slump.
City council approved the towers in December just as developer Solowave Investments demolished the vacant factory on Northfield Drive.
Councillors hailed the conversion of the site to housing as a muchneeded, transformational project.
Solowave has since asked a provincial tribunal to overrule city hall’s decision, saying it imposes regulations that will impede housing and complaining that city planners and council made unanticipated changes at the last minute.
“The city’s disappointing approach left woefully insufficient time to review and discuss any concerns,” Jennifer Meader, a lawyer acting for the developer, wrote in the planning appeal filed in January.
Council’s approval will “not provide the degree of flexibility required to develop a project of this scale over an extended period of time,” Meader wrote.
It’s the latest in a series of appeals meant to bypass city hall by putting approval for new housing before the Ontario Land Tribunal, an independent body that resolves planning disputes.
Provincial records show developers have sought tribunal approval for 27 highrise towers proposed at five sites in Waterloo. If approved by the tribunal and built, the towers would provide more than 6,400 units that could house more than 10,000 people.
Developers typically asked the tribunal to intervene before council decided on their housing proposal, citing city hall’s failure to decide within a legislated timeline. Tribunal intervention at the Kraus site was sought after council approval.
City hall declined an interview request, saying it does not comment on matters before the tribunal.
“The city respects all legal and commercial processes for land development in Ontario, including any developer’s right to appeal to the Ontario Land Tribunal,” city hall said in a statement.
Waterloo is doing poorly on its pledge to move past a housing crisis that has escalated rents and costs and contributes to homelessness.
Construction starts for new homes have declined three years in a row. In 2023, the city achieved just over half the new housing sought by the province in its 10-year housing plan. In January, just one new home was started in the city.
One development proposal put
before the tribunal would see eight towers ranging from 16 to 28 storeys built on the site of the former Inn of Waterloo, on King Street North near the Highway 85 expressway.
Developer Drewlo Holdings intends to lease the vacant hotel for three years as student housing for Conestoga College, before securing approvals for demolition and construction.
Until the tribunal schedules a hearing “we cannot accurately comment on the timing of development, but are hopeful construction can start within three years,” said Jerry Drennan, Drewlo’s chief operating officer. Drewlo appealed to the tribunal for development approval after city hall was too slow to approve the project under a legislated timeline.
City hall reached a settlement last November to allow three towers ranging from 16 to 22 storeys on Bridgeport Road East near Devitt Avenue North. The tribunal endorsed the settlement in January, closing that appeal.
The settlement permits one tower to rise higher to 27 storeys. One tower will become narrower, while 23 units are added to the project, among other planning adjustments.
Provincial records show city hall and the developer are discussing a possible settlement over a tower of 18 storeys proposed at Regina Street North and Erb Street East. The tribunal plans a hearing in September.
The tribunal has been asked to consider holding a hearing some time after May 1 on three towers ranging from 22 to 25 storeys proposed at Bridgeport Street East and Weber Street North. A hearing scheduled to start last month was put off with consent after the developer submitted a revised proposal.
The revised proposal would see one tower increased to 35 storeys (from 25), while another tower is reduced to19 storeys (from 22). The total number of units would increase by 84, among other planning adjustments.
City council took steps last year to move faster to process development requests. They include trimming public consultation, compressing timelines, delegating certain approvals, reworking internal procedures and hiring two more planners.
An internal study showed city hall was taking up to a year or more, on average, to process development applications made between 2017 and 2019. By legislation, planning decisions must be made between 90 and 120 days, depending on the type of approval sought.