Kitchener City Council's June 15, 2026 Special Meeting on Economic Development

Kitchener City Council's special meeting on June 15, 2026 focused on updating the city's economic development strategy, downtown revitalization, technology and talent retention, a proposed three-year residential development charge reduction tied to a provincial-federal funding application, and use of Building Faster Fund money for road resurfacing.

Topics Discussed

• MAKE IT KITCHENER 2.1: Council considered a mid-point review of the city's 10-year economic development strategy, first approved in 2020. Mayor Berry Vrbanovic said, "So, I'm excited to share with you today our proposed Make a Kitchener 2.1 with new areas of focus." Staff and speakers said the update responds to changed conditions including tariffs, AI adoption and economic pressure. Mr. Bloom told council, "In my 25 years, I have not experienced a time when so many negative pressures were facing our our community and oureconomy at once as it was last year." Council approved the strategic focus areas, with detailed actions to come back later.

• ECONOMIC DIVERSIFICATION, TECH AND TALENT RETENTION: Council discussed how to support startups and scaleups, help existing firms adapt to AI, and better connect students to opportunities in the city. Mayor Vrbanovic said, "So to the degree that the city of Kitchener can invest to support our ability to support entrepreneurs as they adapt to the AI era, every net new company needs to be AI native built on a new technology stack and every existing company needs to adapt." On student retention, Councillor Stretch said, "we need to get them introduced to uh our community at large, right? Social connectivity." A speaker identified as Sheldon said one student told him, "I realized at the end of my fourth year that I was too old to stay here in this community," which he said showed the city needs to do more to expose students to off-campus opportunities.

• DOWNTOWN REVITALIZATION: Council discussed vacant downtown office and storefront space, arts and entertainment uses, and attracting more businesses and visitors to the core. Mayor Vrbanovic said staff would begin "a comprehensive retail and restaurant attraction strategy," with the city actively seeking businesses that could fill vacancies and improve downtown vibrancy. Councillor Singh said, "I think the next term of council, we need a solid strategy. We need some catalytic investments. And quite frankly, downtown, we need to rein focus because I just don't see the improvements that I'm that I want to see."

• DEVELOPMENT CHARGE REDUCTION PROGRAM: Council reviewed a proposal to apply by June 19 to the Development Charge Reduction Program. Staff member M. Fischer said the program would allow the city, "In exchange for a 30 to 50% or more reduction to residential DC rates over a three-year period," to seek funding "of up to 90% of eligible costs on up to five growth supporting capital projects." Mayor Vrbanovic said, "with these rates proposed, it would mean a 100% elimination of all hard infrastructure DCS for residential new housing development over the three-year window." Councillors questioned whether the savings would reach buyers. Councillor Davey said, "the public needs to understand this... why are the developers getting a $37 million gift?" Councillor Owodunni used a housing analogy, saying, "if someone builds a new house in your subdivision... everyone else that lives in the subdivision shouldn't pay for your plumbing."

• BUILDING FASTER FUND AND ROAD RESURFACING: Council discussed directing the latest Building Faster Fund payment to existing infrastructure rather than new projects. Councillor Davey said, "beginning of this year one of the biggest complaints that I've heard from residents has been related to road infrastructure and this addresses all of that." He also said, "I could not be happier to see that we're going to be doubling the road reresurfacing program with these funds." Council heard about $6 million would go to resurfacing, covering roughly nine kilometres of roads.

Motions

• Make It Kitchener 2.1 / economic development strategy update — carried
• Development Charge Reduction Program application and agreement, contingent on full $37 million and five projects being approved — approved
• Building Faster Fund investment plan, including road resurfacing allocation — approved
• Three readings of bylaws — passed

Attendees

Councillors mentioned as present: - Mayor Berry Vrbanovic - Councillor Margaret Johnston - Councillor Paul Singh - Councillor Scott Davey - Councillor Debbie Chapman - Councillor Stephanie Stretch - Councillor Ayo Owodunni - Councillor Bil Ioannidis

Note: Councillor Margaret Johnston disclosed a pecuniary conflict of interest on Item 4.1 and did not vote on that item.