The developer behind the building that will house an Amazon fulfillment centre in Cambridge is fighting back against a $13.9-million development charge that Waterloo Region levied after it learned who the tenant was to be.
Loopstra Nixon LLP, which is representing 140 Old Mill Rd. Ltd. Partnership, the company behind the one-million-square-foot development in the Village of Blair, has sent an appeal disputing the charge to the Ontario Land Tribunal.
The appeal filed by the law firm says that the region initially issued a development charge of $9 million last summer, which was promptly paid by its client. It says that after several building permits were issued between August and November, the region issued an additional charge of $13.9 million.
“This was done despite no material changes being made to the industrial building or the proposed use thereof, and no changes being made to the DC bylaw,” a letter from the law firm to the OLT read.
“As far as we are aware, the only new information is the name of the initial tenant of the industrial building.”
According to a letter from Waterloo region to the developer (which was filed as part of the claim), the region had indeed subsequently learned who the tenant would be.
“Subsequent to the issuance of the foundation permit, it was learned that the development is to be used as an Amazon Fulfillment Centre and not as an industrial storage/warehousing facility as previously indicated,” states the letter signed by Craig Dyer, chief financial officer for Waterloo region.
“It is the Region’s position that the proposed development does not meet the definition of ‘industrial building’ or ‘warehousing.’”
Qualifying in those categories entitles the development to receive a 60 per cent discount on development charges, which is where the $13.9-million difference comes in, according to the letter.
“‘Warehousing’ means a building in which the main use is the bulk storage of raw or semi‐
processed goods to be used in manufacturing and/or the wholesale distribution of
manufactured goods or materials,” the letter notes.
Waterloo Region withheld comment when contacted by Global News as the case is before the Ontario Land Tribunal.
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