The Area of Waterloo is out $13.7 million after an error was made in calculating improvement charges for a undertaking in Cambridge the place an Amazon fulfilment centre was later constructed.
A choice launched by the Ontario Land Tribunal on Nov. 27 discovered the area was not allowed to ask for more cash from the developer after discovering out the warehouse being constructed could be used as a fulfilment centre by Amazon.
When the area tried to reassess the fees, the developer disagreed with the reassessment and took their case to the Ontario Land Tribunal. The developer argued they’d already paid the event charges and below the regulation they shouldn’t be anticipated to pay further charges.
The tribunal agreed.
Particulars of case
Paperwork from the tribunal present that in July 2022, the area requested builders of the property at 140 Outdated Mill Highway in Cambridge to pay $9,082,948.59 in improvement charges to construct an industrial constructing, on this case, a warehouse.
The developer — recognized as 140 Outdated Mill Highway Restricted Partnership and 140 Outdated Mill Highway Coinvest Restricted Partnership however also known as Outdated Mill within the tribunal paperwork — paid that invoice in August 2022.
In November 2022, the area realized the unique quantity was incorrect and they need to have charged $22,802,521 — a distinction of simply over $13.7 million.
The tribunal paperwork confirmed the developer argued the area had already issued a constructing allow, collected the cash and the invoice had been licensed by the regional treasurer.
The builders additionally famous they acquired website plan approval for the undertaking from the area on Aug. 30, 2022, then there have been two extra constructing permits issued for the Outdated Mill industrial constructing between Aug. 30, 2022 and Oct. 18, 2022.
The developer argued the constructing is a “warehouse” and due to this fact certified for the decrease improvement charges.
Area argues fulfilment centre not a warehouse
Shane Fedy, the area’s supervisor of infrastructure financing, argued a fulfilment centre doesn’t qualify for a similar discounted improvement charges as a warehouse, and due to this fact the developer ought to have been charged extra.
He stated being an Amazon facility and being utilized by a web-based retailer means the constructing did not meet the definition of an “industrial constructing” and due to this fact “doesn’t qualify for the industrial [development charge] price,” the tribunal paperwork present.
The tribunal discovered the regulation “does not allow a municipality to impose a further improvement cost or a corrected quantity after a improvement cost has already been assessed, collected, and licensed, and a constructing allow issued for the event.”
Due to this fact, the tribunal dominated the developer doesn’t owe the area any more cash.
CBC Okay-W has reached out to a regional spokesperson about whether or not the area plans to attraction the tribunal’s choice however didn’t instantly obtain a response.
Controversial undertaking
The tribunal choice is the newest information in what has been a controversial undertaking. Earlier than the fulfilment centre was constructed, a gaggle of residents known as Blair Engaged known as on the Metropolis of Cambridge and Area of Waterloo to not allow the warehouse. A web-based petition opposing the warehouse reached 25,000 signatures.
Cambridge metropolis council accepted the ministerial zoning order, often known as an MZO, for the undertaking in April 2021. However in March 2022, council briefly halted the undertaking over two reviews heritage influence and a transportation influence of the warehouse. Council then moved ahead with approving a movement to permit the undertaking to maneuver ahead in Could 2022.
