City Council Meeting: Development Charges and Industrial Land Strategy

The committee heard a development charges complaint involving Westell Developments' project at 15 Capulate Walk, which includes 23 proposed affordable rental units. Staff recommended dismissing the complaint, saying the developer had voluntarily entered into an alternative payment agreement that required interest. The committee also approved a separate process to review certain development agreements entered into shortly before a November 3, 2025 legislative change and remove interest charges in eligible cases. Staff said the 23 affordable units could still qualify for separate development-charge relief through the city's affordable housing programs.

Topics Discussed

DEVELOPMENT CHARGES COMPLAINT: 15 CAPULATE WALK

The complaint, filed by McKenzie Lake Lawyers on behalf of Sereno West Village Incorporated and Westell Development Corp., concerns approximately $553,000 in deferred development-charge interest for the 15 Capulate Walk project.

The project increased from 17 to 26 storeys through the city's TSA zoning process and includes 23 proposed affordable rental units. Paul Kitson told the committee the developer accelerated the project after the city asked it to help advance housing supply and support eligibility for provincial funding. He said, "Thank you for the opportunity to speak here today regarding 15 cap walk on our request for relief from approximately 553,000 in deferred development charge interests."

Kitson argued the timing of the agreement was decisive. He said the alternative payment agreement was signed 12 days before the legislative change and that if the developer had waited until Nov. 3, "the answer is no" as to whether the interest would have been charged or whether the company would be seeking relief.

STAFF RECOMMENDATION AND LEGAL FRAMEWORK

Staff recommended dismissing the complaint, saying the developer voluntarily entered into a Section 27 alternative payment agreement that expressly required interest. The committee discussed the limited grounds for relief under the Development Charges Act: an incorrect determination, an available credit, or an error in applying the bylaw.

Mayor Josh Morgan backed staff's interpretation, saying, "it is my opinion that staff have correctly interpreted the development charges act." He added that while he saw the situation as unfair, the proper route was outside the tribunal process.

Morgan later said, "based on my previous comments, I support staff's recommendation reading of the act that we would dismiss um the uh uh dismiss the appeal under the provisions of the tribunal."

AFFORDABLE HOUSING AND DEVELOPMENT CHARGES

Staff said the 23 affordable units could still qualify for relief through a separate affordable housing process. If approved under the city's program, the development charges and related interest for those units could be adjusted.

Morgan urged the applicant to pursue that route. "I would strongly encourage the applicant to pursue the 23 units of affordable housing through the path that staff have outlined," he said, adding that he intended to raise "the issues of fairness" outside the tribunal process.

He also said, "Those affordable units are really important to the city," and encouraged the applicant to work with staff so the units could be built and receive any available credits.

INTEREST RELIEF FOR OTHER DEVELOPMENT AGREEMENTS

The committee approved a separate motion directing civic administration to consult with applicants who entered into development agreements up to 50 days before Nov. 3, 2025, when provincial legislative changes took effect.

Morgan said the motion was meant to address cases where applicants crossed the deadline by only a short period. "This is one of those situations where you're doing the municipality what ends up being a $12 million favor and the position they put themselves in is a half a million dollar bill that they otherwise wouldn't have."

INDUSTRIAL LAND AND DATA CENTRES

During discussion of the Industrial Land Development Strategy, Councillor Skylar Franke asked staff about data centres and whether they would be considered an appropriate use on municipal industrial land.

Franke said, "I've been getting lots of questions about AI data centers and our industrial land strategy. So, I'm just wondering if staff could comment on if a data center would be an applicable use for the municipal industrial land."

Staff replied that data centres are not among the city's targeted industries and indicated they would not recommend that use under the current strategy.

Motions

• Motion to proceed with the development charges hearing: Carried 5-0.
• Recommendation to dismiss the development charges complaint: Approved by committee, with final authority resting with Municipal Council.
• Affordable housing component motion: Carried 5-0. The applicant was directed to pursue a separate process for possible development-charge relief tied to the 23 proposed affordable units.
• Development-charge interest relief for eligible agreements: Carried 5-0. Civic administration was directed to consult with applicants whose agreements were entered into up to 50 days before Nov. 3, 2025, and the city treasurer was given delegated authority to amend eligible agreements.

Attendees

• Mayor Josh Morgan
• Councillor Skylar Franke
• Councillor Corrine Rahman
• Councillor Paul Van Meerbergen
• Councillor Elizabeth Peloza