The Region of Waterloo is once again attempting to spark some development at the site of the former Charles Street Terminal in downtown Kitchener.
Regional staff will recommend using a phased approach to development at that site at a council meeting on Tuesday.
The three-acre lot is primarily owned by the Region of Waterloo, with a small portion owned by the City of Kitchener, used primarily for parking. The land has been mostly unused for the last seven years, and was briefly the site of a drive-through COVID-19 testing centre.
Discussions on the future of the lot have been ongoing for years, including public engagement and consultation from 2019 through to 2024. Affordable housing, green space, and an Indigenous learning centre have all been discussed as potential features of development on the site.
However, the current climate makes development difficult, according to regional staff.
“Current development market conditions remain challenging, with higher construction costs, elevated interest rates, and more cautious lending environments affecting large, high-density projects. These conditions are expected to persist in the near term and will require a change the approach to how the project should advance,” reads a report from regional staff heading to council on Tuesday.
On top of those challenges, new development in Waterloo Region is limited for the time being as the region works on solutions to its water capacity issues.
When it comes to selling off the land to a private developer, regional staff believe the possibilities for that scenario are quite limited at this current time.
“Earlier in the project, particularly during the 2020–2022 period, strong market conditions suggested an opportunity to generate revenue from the sale of the Charles Street Terminal lands,” it reads. “Given the current and foreseeable economic climate, this is now less certain.”
The region is also set to explore potential partnerships with local non-profit groups and organizations for the first phase of the project to “establish an active presence on the site and build momentum for subsequent phases.”
No timelines for the phases have been given.
If this phased approach is approved by council at a meeting on Tuesday, staff will continue prepping the site for development proposals and ready council to declare the land surplus.
