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Home My WebLink AboutFIN-2026-098 - Savic Homes, 15 Dellroy Avenue - Section 20 Development Charges Complaint - Jurisdiction Hearing Financial Services Department www.kitchener.ca REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: March 9, 2026 SUBMITTED BY: Ryan Hagey, Director of Financial Planning & Asset Management, 519- 904-9347 PREPARED BY: Ryan Hagey, Director of Financial Planning & Asset Management, 519- 904-9347 WARD(S) INVOLVED: Ward 2 DATE OF REPORT: February 25, 2026 REPORT NO.: FIN-2026-098 SUBJECT: Savic Homes, 15 Dellroy Avenue Section 20 Development Charges Complaint Jurisdiction Hearing RECOMMENDATION: That the appeal to hold a hearing pursuant to section 20 of the Development Charges Act with relation to the development taking place at 15 Dellroy Avenue be dismissed as the complaint was not made within the appropriate timeframe. REPORT HIGHLIGHTS: The purpose of this report is to determine whether Committee has jurisdiction to hear a complaint regarding development charges at 15 Dellroy Avenue. The key finding of this report is the complaint was made outside the 90-day timeframe spelled out in the Development Charges Act, so no hearing should be held. This report supports the delivery of core services. BACKGROUND: A complaint was filed with the City of Kitchener regarding the development charges (DCs) imposed for a development at 15 Dellroy Avenue. Complaints of this nature are permitted under section 20 of the Development Charges Act (DCA). City of Kitchener Council has delegated authority to hear these complaints to the Finance and Corporate Services Committee as part of report COR-2022-498, Development Charges Section 20 Dispute and Hearing Process. REPORT: The complaint regarding DCs at 15 Dellroy Avenue was made after the timeframe spelled out in the DCA Section 20 (2) states that a complaint may not be made later than 90 days after the day the development charge, or any part of it, is payable. The DC complaint regarding 15 Dellroy Avenue was received on December 5, 2025. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. A building permit for 15 Dellroy Avenue was issued by the City on March 17, 2025. Under the DCA there are provisions to make payments for certain types of development at later dates, but DCs become payable to the City at the time of building permit issuance. This means a formal DC complaint would have to be made no later than June 15, 2025. Given the complaint was made after the 90-day window afforded in Section 20 of the DCA, staff recommended dismissing the complaint without holding a hearing. UPDATE #1: On January 5, 2026 Council approved an adjournment of this DC complaint so staff could meet with Savic Homes and their representatives to discuss the complaint. This meeting took place on January 15, 2026. Despite ongoing requests from staff for a meeting agenda and specific details of the DC complaint, none was provided in advance of the meeting. During the meeting representatives for Savic Homes provided oral information regarding the nature of their complaint and said they would provide the information in writing the following week (January 19-23). As of the time the next staff report was prepared (January 28), the written information had not been received After the meeting staff are still of the opinion the DC complaint should be dismissed as it was not made within the appropriate timeframe. UPDATE #2: On February 9, 2026 Council approved a second adjournment of this DC complaint. Staff received the written information promised previously from Savic Homes on February 6, 2026. Staff have reviewed this information and are still of the opinion the DC complaint should be dismissed and do not believe a further adjournment is in order. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: The recommendation has no direct impact on the Capital or Operating Budget. COMMUNITY ENGAGEMENT: INFORM council / committee meeting. PREVIOUS REPORTS/AUTHORITIES: COR-2022-498 Development Charges Section 20 Dispute and Hearing Process FIN-2026-015 Adjournment of Development Charges Complaints 15 Dellroy Avenue and 1438 Highland Road FIN-2026-017 Savic Homes, 15 Dellroy Avenue Section 20 Development Charges Complaint Jurisdiction FIN-2026-071 Adjournment of Development Charges Complaints 15 Dellroy Avenue and 1438 Highland Road UPDATE FIN-2026-062 Savic Homes, 15 Dellroy Avenue Section 20 Development Charges Complaint Jurisdiction UPDATE APPROVEDBY: Jonathan Lautenbach, Chief Financial Officer, Financial Services ATTACHMENTS: DC Complaint Letter for 15 Dellroy Avenue from Loopstra Nixon Steven C. Ferri* *Steven C. Ferri Professional Corporation Tel: (416) 748-4752 Email: sferri@loonix.com BY EMAIL \[amanda.fusco@kitchener.ca\] December 5, 2025 The Corporation of City of Kitchener 200 King St W Kitchener, ON N2G 4V6 Dear Clerk, RE: Development Charges Complaint Complaint Made Pursuant to Section 20 of the Development Charges Act, 1997, S.O. 1997, c. 27 Complaint respecting 15 Dellroy Avenue, Kitchener, ON Complaint On Behalf of Savic Homes We are the solicitors for Savic Homes (“Owner”) the owner of 15 Dellroy Avenue, Kitchener, ON (“Subject Lands”). The Owner is in the process of redeveloping the Subject Lands for residential housing. It is the Owner’s understanding that the City of Kitchener (“City”) intends to assess the Owner development charges (“DCs”) pursuant to the redevelopment of the Subject Lands, despite the existence of a Lot Levy Agreement between a previous owner of the Subject Lands and the City dating from 1974 and the existence of residential units on the Subject Lands. In addition, in our opinion, the Subject Lands qualifies as containing “legally established residential units” for the purposes of section 6.10 of the Bylaw 2022-071 (“DC Bylaw”), exempting said units from the assessment of development charges pursuant thereto. The DC Bylaw governs DCs within the City. Section 6.10 of the DC Bylaw provides that: 6.10 Subject to the provisions of this section, where any redevelopment or re-use of land replaces or changes a former or existing development and, in the case of demolition upon proof of issuance of a demolition permit for the land being provided, the development charge applicable to the redevelopment or re-use shall be reduced by a redevelopment allowance, without interest, not to exceed an amount equal to the total of: (a) the number and types of legally established residential units in the former or existing development; and (b) the legally established non-residential gross floor area of the former or existing development, 1 as determined by the Chief Building Official, or his or her designate, at the rates applicable to such units or gross floor area at the time the first building permit for the re-development is issued. \[Emphasis added.\] The intent of section 6.10 is to reduce the DCs payable on a development where DCs have already been paid with respect to a previously existing development. The former development on the Subject Lands constitutes legally existing residential units for the purposes of the DC Bylaw. This is evidenced by the submission of plans, the issuance of building permits, and the existence of structures which were required to be subject to said plans and permits. Please accept this letter as a formal complaint on behalf of the Owner pursuant to section 20 of the Development Charges Act, 1997, S.O. 1997, c. 27 (the “Act”) with respect to the development charges imposed upon our client on the basis that: 1. The amount of the DCs is being incorrectly determined; and, 2. There is an error in the application of the City’s DC By-law. On the basis that detailed grounds for the complaint will be provided in due course, we respectfully request that the City proceed to schedule a hearing of this complaint before Council. We would appreciate the opportunity to discuss this complaint with City staff in hopes of having it addressed in advance of the hearing date. Please contact the undersigned should you require any additional information. Otherwise, we look forward to working together to rectify this matter. Yours truly, LOOPSTRA NIXON LLP Per: Steven C. Ferri 2