Time’s up

Shire Hall extends term to Wellington developer

Adeveloper’s hold on Wellington’s waterworks capacity has lapsed, according to Shire Hall. But as the developer— Kaitlin—is close to satisfying a final condition of a subdivision deal, Shire Hall has agreed to hold the allocation—for the time being.

In 2021, the County entered into a novel waterworks funding agreement with a developer looking to build homes in Wellington. The deal called for the developer to put up a non-refundable deposit of about $4 million. The developer further agreed to fund upfront development charges payable per the subdivision agreement. Typically such payments are made much later in the development process.

But the County had a chicken-or-the-egg problem. It needed massive waterworks expansion— a new water tower, trunk lines under the Millennium Trail, an overflow wastewater tank, and perhaps new water and wastewater plants. The cost will be well north of $100 million. It didn’t have that kind of money nor good prospects of getting it as it was running up against its borrowing limit.

Without the upgrade, however, much-needed new housing could not proceed.

So the County’s senior leadership came up with a plan. It would give the developer assured access to waterworks in exchange for paying upfront for expanding waterworks services. It was innovative and new. The developer got a clear and predictable runway— the municipality got timely funding for its infrastructure.

But the plan did not come without some risk. While the County had offered the pre-payment arrangement to four developers in the beginning, two declined to participate (perhaps an indication of their seriousness). Kaitlin subsequently acquired the adjacent project, Fields of West Lake. The developer now controls all the lands north of the Millennium Trail from Consecon Street to the east of Belleville Road. They also hold all of Wellington’s waterworks capacity.

All other potential builders—large and small— have been advised to get in line. They will have to wait until the waterworks expansion is completed, many years in the offing.

But a clause in the agreement between the developer and the County put a time limit on the developer’s hold on the waterworks allocation. Senior leadership had wisely put a fuse on the deal. The developer couldn’t sit on this allocation forever.

So here we are. Shire Hall confirmed that the developer’s hold lapsed on May 24. It will, however, work with the developer as long as it is diligently working toward a timely resolution to the final condition of the subdivision agreement.

But not forever.

“We are, however, now in a position to re-allocate at any time, should the developer fail to continue to work diligently and expeditiously toward satisfying all draft conditions,” wrote Mark Kerr, speaking for Shire Hall.