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HomeMy WebLinkAboutDSD-2025-450 - Inclusionary Zoning - 2025 Residential Market UpdateStaff Report J IKgc.;i' r� R Development Services Department www.kitchener.ca REPORT TO: Planning and Strategic Initiatives Committee DATE OF MEETING: December 1, 2025 SUBMITTED BY: Rosa Bustamante, Director, Planning and Housing Policy/City Planner, 519-783-8929 PREPARED BY: Elyssa Pompa, Planner (Policy), 519-783-8943 WARD(S) INVOLVED: Ward(s) 3, 9, 10 DATE OF REPORT: REPORT NO.: November 20, 2025 DSD -2025-450 SUBJECT: Inclusionary Zoning — 2025 Residential Market Update RECOMMENDATION: Information REPORT HIGHLIGHTS: • The purpose of this report is to share findings of a report prepared by retained consultants ("NBLC") on local market conditions, as directed by Council. • The key finding of this report is that no adjustments to specific policy parameters are recommended to the Inclusionary Zoning framework, in consideration of the NBLC report and the City's commitment to enabling and delivering affordable housing. • There are no financial implications arising from this report. • Community engagement included presenting report findings with members of the development industry and posting of the NBLC report on the Engage WR Inclusionary Zoning page. • This report supports Building a Connected City Together: Focuses on neighbourhoods; housing and ensuring secure, affordable homes; getting around easily, sustainably and safely to the places and spaces that matter. BACKGROUND: On December 16, 2024, Council adopted Official Plan Amendment 59, Amendment 2024- 213 to Zoning By-law 2019-051 and Amendment 2024-214 to Zoning By-law 85-1 that made revisions to Inclusionary Zoning policies and provisions. In addition, Council directed: "That the inclusionary zoning framework be operationalized as of January 1, 2026; and further, That staff be directed to monitor local market conditions and report back to Council no later than the end of 2025 with recommendations on potential adjustments to specific policy parameters, where necessary." *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 235 of 271 REPORT: Staff retained N. Barry Lyons Consulting (NBLC) land economists to conduct an updated 2025 Residential Market Assessment ("report") analysing recent local market activity and conditions. The report reinforced that across multiple key indicators, the market and economic context for investing in new high density residential development in Protected Major Transit Station Areas (PMTSA) is markedly more challenging. Key indicators were measured, including: • Population Growth: Kitchener -Waterloo -Cambridge has continued to see strong population growth, largely driven by non -permanent residents. Recent Federal policy announcements related to cuts and caps to permanent and non -permanent resident targets will dampen the pace of population growth in the near term; • Development Feasibility: Rising interest rates and a 92% increase in construction costs since 2017 have significantly reduced the feasibility of new housing projects, leading to minimal new launches and building permits in 2025; • Condominium Market Trends: The gap between new sales and unsold inventory continues to widen as demand remains weak. Relative affordability and choice in the resale market has eroded the attractiveness of purchasing in a pre -construction project; and • Rental Market Outlook: Vacancy rates have been increasing and have reached balanced market conditions for the first time in over two decades. Rental price growth has been dampened by record -high completions in 2023 and a decrease in international student visas. The report concluded that unless an Inclusionary Zoning policy was combined with offsetting measures, the policy would likely delay the recovery of transit -oriented sites. However, if this policy is applied in the near term, it would not be the sole reason new development projects within PMTSA areas are not proceeding. The report indicated that currently, there is no rationale for reclassifying the submarkets classifications ("prime", "established", or "emerging") within PMTSAs given the absence of projects and land transaction activity. Although the timeline for market recovery remains uncertain, broader market fundamentals indicate there will likely be a return to a strengthened housing market over time. The NBLC report is included as Attachment A. What We Heard Staff from the cities of Kitchener, Waterloo, Cambridge, and the Region of Waterloo met with representatives from the Waterloo Region Homebuilders Association and Build Urban on October 16th to share the results of the NBLC report and discuss a letter prepared by Build Urban on a proposed approach to when Inclusionary Zoning requirements should begin to apply. The discussion was productive. Members shared concern that the implementation of Inclusionary Zoning now is ill-timed due to the current stagnation of the housing market. Staff heard the members' suggestions that Inclusionary Zoning requirements only begin once the number of housing starts are above historic averages. Page 236 of 271 The proposal was that the requirements for Inclusionary Zoning would be automatically re- assessed and potentially paused or reapplied every 6 months. A letter outlining their policy approach is included as Attachment B. Conclusion The City's residential market continues to experience limited activity. Despite a pause to Inclusionary Zoning implementation in 2025, and clear communication to the development industry of a 2026 implementation, to date, there have been no 50+ unit housing developments started this year within the city's PMTSAs (50+ unit developments trigger IZ). This indicates that Inclusionary Zoning is not suppressing housing starts in the current climate of overall market weakness. Implementing Inclusionary Zoning at this time positions the City to capitalize on future housing supply opportunities as the market rebounds. Establishing a small but certain Inclusionary Zoning requirement beginning in 2026 will provide policy that the development industry can plan for when making investment decisions. While staff acknowledge NBLC's residential market analysis, it is important to recognize that Inclusionary Zoning is one small contributor to development viability challenges in 2025. The timing of Inclusionary Zoning implementation was strategic and aligned with the launch of Kitchener's Growing Together planning framework. This framework, which has been in place since early 2025, enables unlimited height and density permissions in key areas. As a result, development applications that conform to this framework would no longer require Official Plan Amendments or Zoning By-law Amendments. This significantly streamlines the approval process, reduces application and study costs, and reduces barriers to housing delivery. This coordinated approach ensures that when market conditions improve, the City will be well positioned to support increased housing supply. Staff continue to acknowledge the importance and value of monitoring market conditions as part of the Inclusionary Zoning framework. This ongoing analysis is also a requirement under Provincial legislation. Council's decision in December 2024 supported an implementation date of January 2026. As outlined in the Inclusionary Zoning bylaw, the set-aside rates are scheduled to increase in 2027, which will require staff to report back to Council with a Zoning Bylaw Amendment no later than end of 2026. This built-in review point provides an opportunity to assess market conditions and make any necessary adjustments to the set-aside rates at that time. Despite a continued slowdown of housing development in Kitchener, the Province recently announced that the City achieved 105% of its 2024 housing target with 3,067 housing starts. Although designed to function in response to market changes and grounded in maintaining market viability, it is important to reiterate the critical importance on the long-term intent of the Inclusionary Zoning policy to secure affordable housing units in new development. Inclusionary Zoning policy is one of ten Housing Accelerator Fund (HAF) initiatives the City of Kitchener is committed to implementing as part of its contribution agreement with the Canadian Mortgage and Housing Corporation (CMHC). The current contribution agreement requires that the City demonstrate that implementing IZ policies has resulted in the creation of 21 new affordable dwelling units over the course of the program period. There may be an Page 237 of 271 opportunity to request that these units be reallocated to another HAF initiative and still achieve the overall number of HAF incentivized units that are required by September 2026. STRATEGIC PLAN ALIGNMENT: This report supports Building a Connected City Together: Focuses on neighbourhoods; housing and ensuring secure, affordable homes; getting around easily, sustainably and safely to the places and spaces that matter. FINANCIAL IMPLICATIONS: None. COMMUNITY ENGAGEMENT: INFORM – This report has been posted to the City's website with the agenda in advance of the council / committee meeting. Additionally, the NBLC report and information about the Committee of Council meeting was shared on the Engage WR Inclusionary Zoning page and an email notice of the meeting was sent to all persons who had previously expressed interest in the project. CONSULT – Staff from the cities of Kitchener, Waterloo, Cambridge, and the Region of Waterloo met with representatives from the Waterloo Region Homebuilders Association and Build Urban on October 16th PREVIOUS REPORTS/AUTHORITIES: • DSD -20-006 Affordable Housing Strategy Phase 2: Housing Needs Assessment • DSD -20-150 Inclusionary Zoning for Affordable Housing: Background and Fiscal Impact Analysis • DSD -2022-281 Growth Related Funding Tools — Cumulative Impact Assessment • DSD -2022-501 Bill 23 More Homes Built Faster Act — Kitchener Comments • DSD -2023-071 Inclusionary Zoning for Affordable Housing: Status Update • DSD -2023-258 Inclusionary Zoning — Policy and Implementation Directions • DSD -2024-029 Official Plan Amendment OPA23/015/ K/TD and Zoning Bylaw • Amendment ZBA23/ 027/ K/TD — Inclusionary Zoning • DSD -2024-111 Official Plan Amendment and Zoning By-law Amendment, DSD - 2024 -029 and Follow-up Report • DSD -2024-498 Inclusionary Zoning – Updated Market Analysis • Provincial Planning Statement, 2024 • Planning Act, R.S.O. 1990 • Residential Tenancies Act, 2006 • Housing Services Act, 2011 • Regional Official Plan, 2010 REVIEWED BY: Natalie Goss, Manager Policy & Research APPROVED BY: Justin Readman, General Manager of Development Services ATTACHMENTS: Attachment A – NBLC 2025 Residential Market Update Attachment B – Inclusionary Zoning Letter from Build Urban Page 238 of 271 w I I 'O T N aj O_ C Oj IIIII�I�I�I�I�I�u�UgU�NpNl�l�l�l� O O Q m 10 a O O O 7ZC77„ t ;n. 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Our Client has requested that we prepare this letterto contribute to the ongoing discussion about Inclusionary Zoning ("IZ") By-laws in the tri -City area. As a starting point, our Client takes the position that current housing market conditions do not allow for an IZ program to be implemented whatsoever. Implementing an IZ By-law at this stage will only serve to place a further chill on the housing market, which will have the unintended effect of further reducing housing affordability rather than the laudable goal of adding to the Region's affordable housing stock. JENNIFER J MEADER, PROFESSIONAL CORPORATION TMA LAW Page 262 of 271 2 Representatives of our Client were in attendance at a meeting with the City of Waterloo on October 16, 2025. At this meeting, the City showed a presentation from N. Barry Lyons Consulting ("NBLC") which continues to confirm that market conditions are not conducive to an IZ Program. Through this letter, we are requesting a copy of NLBC's presentation. Our Client believes wholeheartedly that, when market conditions can sustain it, an IZ program, properly implemented, can significantly increase the amount and rate of affordable housing development in the tri -City area. The purpose of this letter is to propose a framework for a "triggering" or "phasing" provision in IZ By-laws, such that the IZ program is in effect only when market conditions can sustain it. This letter focuses on the permissibility of a triggering or phasing provision. The precise nature of the market indicia which might serve as a trigger for IZ should be part of future detailed discussions between municipalities, landowners, developers, land economists, and other interested parties. OVERVIEW While the Planning Act and the IZ regulations do not specifically permit municipalities to use such triggering provisions, they do not prohibit them. Our opinion is that municipalities have the power to incorporate triggering provisions into their IZ by-laws, so long as the trigger is reasonable. This letter discusses the following: • The IZ by-laws in Waterloo, Kitchener, and Cambridge; • The Development Charges Act, which allows municipalities to include indexing and phasing provisions in their development charges ("DC") by-laws; • Municipal powers and judicial review; and • Potential wording for trigger provisions. EXISTING INCLUSIONARY ZONING BY-LAW REVIEW City of Waterloo On June 24, 2024, Waterloo passed Inclusionary Zoning By-law No. 2024-058. It operates as an amendment to Waterloo's existing Zoning By-law. The original implementation date for Waterloo's IZ By-law was March 31, 2025. Section 4(c) of the IZ By- law, which amends Section 3.1.2 of the Zoning By-law, read: JENNTFER J MEADER, PROFESSTONAL CORPORATION TMA LAW Page 263 of 271 3 Commencing on March 31, 2025, on a LOT that is located"" TRANSIT STATION AREA as identified on ed, • percentage of GROSS LEASABLE RESIDENTIAL FLOOR AREA shall be set aside for AFFORDABLE, DWELLING UNITS in accordance with Table 3C-2, net u _ -r DWELLING UNIT requiredr an applicable Rental Replacement The IZ By-law's intent was that a further assessment of market conditions would be undertaken before its implementation. In October of 2024, N. Barry Lyon Consultants Ltd. ("NBLC") prepared a 2024 Residential Market Update for Kitchener, Waterloo, and Cambridge ("Supplementary Market Assessment"). It noted that IZ implementation could further delay the recovery of the residential construction market within major transit station areas ("MTSAs"). It recommended delaying implementation of IZ. On March 24, 2025, Waterloo Council approved ZBL 2025-11, which amended Section 3.1.2.c) to change the date of IZ implementation to "an undetermined date in the future". On June 23, 2025, Council received a mid -year update on IZ. It recommended that the undetermined implementation date be maintained, with a further housing market assessment to take place later in 2025. City of Kitchener Kitchener's IZ scheme is contained in two separate zoning by-laws: • In Kitchener's Zoning By-law 85-1, the IZ provisions are in Section 5.35; and • In Kitchener's Zoning By-law 2019-051, the IZ provisions are in Section 4.3. Originally, Kitchener set an IZ implementation date of January 1, 2025. On December 2, 2024, Kitchener Council amended the two Zoning By-laws to extend the implementation date to January 1, 2026. Like Waterloo, the intent was to conduct a further housing market assessment later in 2025. City of Cambridge Cambridge has not yet adopted an IZ By-law. It is working together with Waterloo, Kitchener, and the Region of Waterloo on developing a by-law. JENNIFER J MEADER, PROFESSIONAL CORPORATION TMA LAW Page 264 of 271 4 CHALLENGES WITH A FIXED IMPLEMENTATION DATE Both Waterloo and Kitchener's IZ by-laws use a fixed implementation date, or date to be fixed in the future, to trigger IZ requirements. Using a fixed date poses problems. Predicting the state of the housing market in the future, even with the benefit of the expert Market Assessments NBLC is preparing, is not possible. In addition, the only way to change a fixed date is through a further ZBL amendment. Kitchener and Waterloo had to do this in December 2024 and March 2025 respectively. The ZBL amendment process is a slow one. These fixed implementation dates are effectively an "ON/OFF switch" for IZ: either IZ applies or it does not. The only way to flip the switch is through a lengthy public process. A misconstrued implementation date during poor market conditions may cause an increased chill on residential development in MTSAs. This will only be exacerbated and extended by the delays posed by the amendment process. Conversely, if market conditions improve such that IZ is sustainable, a municipality could miss out on affordable housing opportunities if it takes several months to turn IZ "back on". THE ALTERNATIVE: THE DEVELOPMENT CHARGES ACT APPROACH Instead of using a fixed implementation date, in our opinion, it may be more effective to include language in the IZ by-law which automates the "ON/OFF switch". In other words, the by-law will allow for changing affordable housing rates based on changing market conditions. The indexing and phasing provisions of the Development Charges Act ("DCAct") are the inspiration for this approach. Sections 5(1)9 and 10 of the DCAct say: 9. Rules must be developed to determine if a development charge is payable in any particular case and to determine the amount of the charge, subject to the limitations set out in subsection (6). 10. The rules may provide for full or partial exemptions for types of development and for the phasing in of development charges. The rules may also provide for the indexing of development charges based on the prescribed index. Section 7 of O.Reg. 82/98 to the DC Act prescribes the Statistics Canada Non -Residential Building Construction Price Index for Ottawa -Gatineau or for Toronto, as appropriate, as the index for the purposes of ss. 5(1)10 of the DCAct. JENNTFER J MEADER, PROFESSTONAL CORPORATION TMA LAW Page 265 of 271 5 THE LAW: MUNICIPAL BY-LAWS MUST BE REASONABLE Municipalities are "creatures of statute". They do not have any natural powers under the Constitution: they possess only those powers which the Province delegates to them by provincial legislation. This means that they have to act within the constraints of provincial statutes. If they do not, then their decisions or by-laws may be set aside on judicial review.' On judicial review, the courts afford municipalities considerable deference. Municipal by-laws are generally not overturned unless found to be "aberrant", "overwhelming", or if "no reasonable body" could have adopted them.' This deferential approach to judicial review of municipal bylaws has been in place for over a century.' The test is, given the specific context for the by-law: Is it reasonable? Does it have reasonable regard for its context? Does it fall within a range of reasonable outcomes? This deference reflects the broad discretion provincial legislators have traditionally accorded to municipalities engaged in delegated legislation. Municipal councils passing bylaws fulfill a task that affects their community as a whole and is legislative rather than adjudicative in nature. Bylaws are not quasi- judicial decisions. Rather, they involve an array of social, economic, political, and other non -legal considerations. In this context, reasonableness means courts must respect the responsibility of elected representatives to serve the people who elected them and to whom they are ultimately accountable.' The Municipal Act reflects these judicial principles. It confers broad authority on municipalities to enable them to govern their affairs as they consider appropriate, including a broad scope of by-law making powers'. Although Section 15(1) of the Municipal Act limits municipal powers to what has been delegated to them by the Province, Section 15(1.1) is clear that, unless context otherwise requires, the fact that a specific provision is silent on whether or not a municipality has a particular power shall not be interpreted as a limit on the power in that provision.' ' Catalyst Paper Corp v. North Cowichan (District), 2012 SCC 2 ("Catalyst"), at Para. 11. ' Ibid., at Para. 20. s See, e.g., Kruse v. Johnson, [1898] 2 Q.B. 91 (Div. Ct.). a Catalyst, supra n. 1, at Paras. 24-5. 5 Ibid., at Para. 19. 6 See Sections 8-23.1 of the Municipal Act, 2001, S.O. 2001, c 25. ' Section 15(1) of the Municipal Act says that the power conferred on a municipality to pass a by-law under section 9, 10 or 11 of the Municipal Act and also under a specific provision of that or any other Act, including the Planning Act, is subject to any procedural requirements, including conditions, approvals and appeals, that apply to the power and any limits on the power contained in the specific provision. However, Section 15(1.1) of the Municipal Act is clear that, for the purpose of Section 15(1) and, unless the context otherwise requires, the fact that a specific provision is silent on whether or not a municipality has a particular power shall not be interpreted as a limit on the power contained in the specific provision. JENNIFER J MEADER, PROFESSIONAL CORPORATION TMA LAW Page 266 of 271 C: To summarize, municipalities may only exercise those powers delegated to them by the Province. In exercising those powers, they have broad discretion. The Courts will only intervene where the municipality acts unreasonably. THE REASONABLENESS OF A TRIGGER PROVISION FOR IZ The Planning Act and IZ regulations do not specifically permit or prescribe an indexing or phasing process, but they do not prohibit indexing or phasing, either. This is not a bar to municipalities imposing an indexing or phasing or trigger provision in their IZ By-law. O.Reg. 232/18 sets out a lengthy list of requirements for Official Plan and ZBL policies relating to the size, type, and location of development or redevelopment to which IZ applies. This Regulation sets certain rules that an IZ by-law does not apply to development or redevelopment prior to the adoption of Official Plan IZ provisions or the adoption of an IZ by-law, but is otherwise silent as to implementation or phasing for IZ by-laws. In accordance with Section 15(1.1) of the Municipal Act, the silence of the Regulation as to implementation or phasing provisions for IZ by-laws shall not be interpreted as a limit on the power of a municipality to include such provisions — as long as the provision is reasonable. To allow for flexibility in their IZ by-laws, municipalities ought to consider incorporating phasing or trigger provisions which either "turn the by-law on or off" or adjust the percentage of gross leasable floor area for affordable dwelling units ("set-aside rate"), based on existing indicia of local market conditions. Such provisions will allow changes to the implementation date or rate of the IZ by-law without the need for amendment to the by-law, which can be a lengthy process. PHASING PROVISION FOR INCLUSIONARY ZONING IS DISTINCT FROM CONDITIONAL ZONING It is important to distinguish potential phasing provisions for an IZ by-law from conditional zoning, which is not permitted under the current legislation. Subsections 34(16) through (16.2) of the Planning Act authorizes municipalities to impose "one or more prescribed conditions" on the use, erection or location of buildings or structures in their Zoning By-law. This is known as "conditional zoning". However, the conditions municipalities may impose must be prescribed through a Regulation under the Act, and no such Regulation has yet been passed for the tri - JENNIFER J MEADER, PROFESSIONAL CORPORATION TMA LAW Page 267 of 271 City area. Accordingly, conditional zoning is not permitted. The IZ program in the Planning Act is separate and distinct from conditional zoning. IZ is authorized under Sections 16 and 35.2 of the Act, and implemented through a zoning by-law under Section 34 of the Act. The IZ scheme does not come within the ambit of Subsections 34(16) to (16.2). Unlike conditional zoning, the IZ program is supported by a Regulation. IZ policies must include "prescribed provisions and provisions about the prescribed matters"' which are set out in O.Reg. 232/18. The specific prescribed provision in the Regulation which would authorize a phasing or trigger approach to IZ is Paragraph 3(1)5, which states: 5. For the purposes of clause 35.2 (2) (a) of the Act, the number of affordable housing units, or the gross floor area to be occupied by the affordable housing units, that would be required, which, where the development or redevelopment is located within a protected major transit station area identified in accordance with subsection 15 (15) or (16) of the Act, shall not exceed, 5 per cent of the total residential units that are part of the development or redevelopment, or ii. 5 per cent of the total floor area of all residential units that are part of the development or redevelopment, not including common areas. Paragraph 3(1)5 does not state that the number of affordable housing units or gross floor area that would be required must be a fixed number. Nothing in Paragraph 3(1)5 prohibits municipalities from adopting a phasing or trigger approach in their IZ By-law, so long as that approach is set out clearly in their Official Plan and IZ By-law and, as discussed above, so long as that approach is reasonable, predictable, and transparent. SUGGESTED LANGUAGE FOR PHASING PROVISIONS A phasing provision in an IZ By-law could operate either as an "ON/OFF" switch, an adjustment to the set- aside rates, or a combination of both. The trigger for a phasing provision would ideally be tied to existing, public market indicia (such as CMHC's Monthly Housing Starts publication), rather than to bespoke analyses (such as the Residual Land Value analysis employed by NBLC in its financial impact study, which can be difficult to replicate). The goal of clearly setting out the trigger for a phasing provision would be to provide certainty to municipalities and developers alike as to if, when, and to what extent the IZ by-law applies, thereby satisfying the reasonableness standard if the by-law were to be challenged in Court. See Sections 16(7) and 35.2 of the Planning Act. JENNIFER J MEADER, PROFESSIONAL CORPORATION TMA LAW Page 268 of 271 8 The specific trigger points or cut-offs, including the benchmark period and the use of housing starts, should be determined by municipalities in consultation with land economists (e.g., NBLC), developers, and other stakeholders to ensure that they are realistic and reasonable, and to ensure they will not have unintended effects on the housing market. These discussions should occur at the appropriate time, once market conditions can sustain an IZ program. Suggested wording for a triggering and phasing provision for an IZ By-law could read as follows: Semi -Annual Adjustment of Inclusionary Zoning Set Aside Requirements 1. The Minimum Percentage of Gross Leasable Floor Area to be provided for affordable units, set out in the Inclusionary Zoning Set Aside Requirements (Table [X]) imposed pursuant to this By-law, shall be adjusted semi-annually, without amendment to this by-law, on [June 1St and] December 1St in each year ("adjustment dates"), based on the [10 -year rolling average of housing starts as published by the Canada Mortgage and Housing Commission on a monthly basis]' ("housing starts average"), as follows: (a) If, [30] days prior to each adjustment date, the housing starts average is above [XXX], the percentage of gross leasable residential floor area shall be in accordance with [Table X] (being the standard IZrates); (b) If, [30] days prior to each adjustment date, the housing starts average is below [XXX], the percentage of gross leasable residential floor area shall be zero. When Requirement Determined 2. The Minimum Percentage of Gross Leasable Floor Area to be provided for affordable units under this section is the requirement that would be determined under the Inclusionary Zoning Set Aside Requirements (Table [X]) on, 9 Or such alternative statistic or indicia as may be appropriate. JENNIFER J MEADER, PROFESSIONAL CORPORATION TMA LAW Page 269 of 271 1011 (a) The day an application for an approval of development in a site plan control area under subsection 41(4) of the Planning Act was made in respect of the development or redevelopment; (b) If clause (a) does not apply, the day an application for an amendment to a by-law passed under section 34 of the Planning Act was made in respect of the development or redevelopment; or (c) If neither clause (a) nor clause (b) applies, the day a building permit was issued in respect of the development or redevelopment or, if more than one building permit is required for the development or redevelopment, the day the first permit was issued. More than one application 3. If a development was the subject of more than one application referred to in clause 2 (a) or (b), the later one is deemed to be the applicable application for the purposes of this section. Exception, Time Elapsed 4. Clauses 2 (a) and (b) do not apply if, on the date the first building permit is issued for the development, more than [two years OR 18 months] have elapsed since the application referred to in clause 2(a) or (b) was approved. In summary, if an IZ program is to proceed on the behest of Staff and Council, it must be properly implemented. The purpose of this letter is to propose a framework for a "triggering" or "phasing" provision in IZ By-laws, such that the IZ program is in effect only when market conditions can sustain it. This letter focuses on the permissibility of a triggering or phasing provision. We would welcome and value any feedback and the opportunity to discuss this matter further. Very truly yours, JENNIFER J MEADER, PROFEoowiNt%L_ �_"Nr"M/A I ["IN TMA LAW Page 270 of 271 Jennifer Meader JM/mdj Mark A. de Jong CC: Douglas Stewart, Matthew Blevins, Melissa Aldunate, Maria Skara, Elyssa Pompa, Natalie Goss, Tim Donegani, Michelle Lee, Judy Maan Miedema City of Kitchener, Clerk's Office: clerks@kitchener.ca City of Waterloo, Clerk's Office: clerkinfo@waterloo.ca City of Cambridge, Clerk's Office: clerks@cambridge.ca Region of Waterloo, Clerk's Office: regionalclerk@regionofwaterloo.ca JENNIFER J MEADER, PROFESSIONAL CORPORATION TMA LAW 10 Page 271 of 271