Hardball

Lapsed agreement sparks debate over development timelines in Wellington

A missed deadline on Wellington’s largest proposed housing development is serving as a cautionary tale in working with large developers when their interests no longer align with the community.

Council voted to defer a decision on the Cork and Vine subdivision last week after learning the project’s draft approval had lapsed. (Subdivision approvals have timelines built into each agreement to ensure both the developer and the municipality proceed in a timely manner. Among the options available when such agreements lapse is that the municipality can compel the developer to start the process over again.)

Timing is an acute issue in Wellington. The developer controls all the remaining capacity in the municipal water and wastewater treatment plants. No homes may be built in the village unless and until Kaitlin builds them. This arrangement was part of an “award-winning” agreement struck between the developer and former senior leadership at Shire Hall and celebrated at the time by Mayor Steve Ferguson.

Council members seized upon the lapsed agreement as a sign that the developer has little intention to build homes in Wellington in the near future. As such, they contend that some or all of the developer’s capacity could be reclaimed and used to enable smallerscale new homebuilding in the village. The developer, on the other hand, has no intention of giving up its hold on Wellington waterworks capacity.

It is curious, then, that Kaitlin allowed its subdivision agreement to lapse.

Wellington councillor Corey Engelsdorfer quizzed the developer’s representative, Devon Daniell, at a special committee meeting last week.

“How did this happen?” asked the Wellington councillor. “It makes me worry that [the Wellington] project is on the back burner.”

Daniell said the lapse was an oversight.

“It’s a little embarrassing, frankly,” said Daniell in response. “Somehow it got lost in the mix. At the same time, we were working to clear all the conditions, it slipped through the cracks. This is not on the back burner. We have spent hundreds of thousands of dollars completing the studies, finalizing the conditions, detailed designs, tendering…this is as on the front burner as it can be.”

County staff recommended letting the matter slide, suggesting that the developer is making good-faith efforts to fulfill its obligations under the agreement. Nevertheless, the developer failed to seek an extension, and there is no visible indication that building is imminent—or even on the horizon.

Councillors weren’t convinced the issue is a small one.

Councillor John Hirsch wanted to know from the developer why the developer hadn’t started groundwork in Wellington. The trunklines bringing water and wastewater under the Millennium Trail alongside the developer’s property will be completed this year. The developer has a preservicing agreement with the municipality.

Hirsch wanted to know why there was no activity on the site.

“You could be starting that essentially anytime,” said Hirsch.

Daniell turned Hirsch’s question around, suggesting the municipality was holding up the developer—that it was waiting for Council to decide what to do about the lapsed agreement.

“Our goal is to get going this summer,” assured Daniell.

Kaitlin acquired the property in 2006. The first phase of its Cork and Vine subdivision is a 460-unit development featuring a mix of housing types, from single-detached homes to apartments. Daniell says that once the builder gets in the ground, it should be putting up 100 to 150 homes a year.

That seemed a stretch for some council members, who know that the County is on pace to issue 48 new single-detached homebuilding permits in 2026—for all of Prince Edward County.

Other folks, however, are interested in the outcome of this decision. A handful of infill projects—from single homes to a couple hundred townhomes—have been blocked due to the lack of waterworks capacity in the village.

Paul Mondell urged Council to use the lapse as an opportunity to reconsider and “stop playing games.”

Mondell heads Sterling Homes’ proposed subdivision plan north of the Legion on two sides of Cleminson Street. Mondell said his company has been repeatedly told there is no more capacity available in the waterworks system—that it has all been committed to Kaitlin’s project. Yet no homes are being built—or likely to be built in the foreseeable future.

“Given the current housing market, Kaitlin cannot possibly use this capacity in a timely way,” he said. “We believe it is at the point of use it or lose it.”

He added that Sterling Homes would move quickly if given the opportunity, even committing to upfront payments and starting with a smaller phase of about 140 units.
Councillor Chris Braney wants to break the impasse.

“It’s either a use-it-or-lose-it scenario,” asserted the Hillier councillor.

Kaitlin pushed back on the notion that it is sitting on unused capacity.

Daniell said the company has already paid more than $12 million in development charges and is nearing final approvals.

“We are pretty much shovel-ready,” said Daniell. “As soon as the County finishes its work, we are ready to go.”

Mayor Steve Ferguson lofted a softball.

“You are in the final throes of the approvals,” asserted Mayor Ferguson, part question and part statement. “Once those occur, that will lead to getting to the bank, and then we are likely to see equipment moving in, and you start building. Is that correct?” he asked Daniell.

Yes,” said Daniell. “We are planning for this summer— barring any unforeseen delay from the County.”

Mayor Ferguson was satisfied.

“Thank you for your belief in Prince Edward County,” said Mayor Ferguson. “I know we have gone through all sorts of hurdles, but I certainly appreciate your efforts to address the affordable component as well as the variety of housing you are proposing.”

But the mayor’s comfort and praise weren’t shared around the council table.

Councillor Engelsdorfer asked his colleagues to defer a decision about un-lapsing the lapsed agreement until they had had an opportunity to weigh their options with legal counsel. His motion passed 10-4 with only Mayor Ferguson, Bill Roberts, Janice Maynard, and John Hirsch dissenting.