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Home My WebLink AboutFIN-2026-097 - Savic Homes, 1438 Highland Road West - 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 7 DATE OF REPORT: February 25, 2026 REPORT NO.: FIN-2026-097 SUBJECT: Savic Homes, 1438 Highland Road West 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 1438 Highland Road West 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 1438 Highland Road West. 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 1438 Highland Road West. 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 1438 Highland Road West was made after the timeframe spelled out in the DCA be dismissed. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 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 1438 Highland Road West was received on November 26, 2025. A building permit for 1438 Highland Road West was issued by the City on May 20, 2022. 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 August 18, 2022. Further, the complaint regarding DCs for 1438 Highland Road West was received well into the deferred payment schedule for the property. The first payment was due at occupancy which took place in September 2023. Additional payments were due on the anniversary date of occupancy in September 2024 and September 2025. All of these billed development charges are unpaid and remain outstanding. 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-2026-016 Savic Homes, 1438 Highland Road West Section 20 Development Charges Complaint Jurisdiction FIN-2026-071 Adjournment of Development Charges Complaints 15 Dellroy Avenue and 1438 Highland Road UPDATE FIN-2026-063 Savic Homes, 1438 Highland Road West Section 20 Development Charges Complaint Jurisdiction UPDATE APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services ATTACHMENTS: DC Complaint Letter for 1438 Highland Road West from Loopstra Nixon Steven C. Ferri* *Steven C. Ferri Professional Corporation Tel: (416) 748-4752 Email: sferri@loonix.com BY EMAIL \[amanda.fusco@kitchener.ca\] November 26, 2025 The Corporation of City of Kitchener 200 King St W Kitchener, ON N2G 4V6 Attn: Amanda Fusco, City Clerk Dear Ms. Fusco, RE: Development Charges Complaint Complaint Made Pursuant to Section 20 of the Development Charges Act, 1997, S.O. 1997, c. 27 Complaint respecting 1438 Highland Road West, Kitchener, ON Complaint On Behalf of 2296342 Ontario Inc. We are the solicitors for 2296342 Ontario Inc. (“Savic Homes”). Savic Homes has constructed a residential rental housing project at 1438 Highland Road West, Kitchener, ON (“Subject Lands”). On April 14, 2022 the City of Kitchener (“City”) issued a Deferred Payments Determination (“DPD”) for the Subject Lands. The DPD provided that: The following fees shall be paid over a term of 5 years for your Rental Housing project. First payment is due within 30 days of the date occupancy is granted, and then payment is due each year by that same occupancy anniversary date thereafter until paid in full. Please note annual interest charges as determined by both City and Region will also apply at the rate of Prime + 2%. Suburban Area: $1,344,676.00 Region of Waterloo: $2,169,795.00 Total DC: $3,514,471.00 (not including calculated interest) On December 14, 2023 the City of Kitchener (“City”) issued invoice 778907 to Savic Homes for a total amount of $789,657.07 in Development Charges (“DCs”). On September 30, 2024 the City issues invoice 789399 for $711,553.07 in DCs, and on September 11, 2025 the City issued invoice 801309 for $686,391.48 in DCs. 1 Savic Homes, through its solicitors, have communicated their disagreement with the DCs as assessed by the City on the basis that the development on the Subject Lands meets the definition of Affordable Residential Units pursuant to the Development Charges Act (“DC Act”). Pursuant to section 4.1(8) of the DC Act, Affordable Residential Units are exempt from DCs. As per the DPD, a portion of the DCs are payable after June 1, 2024. They are therefore payable after the transition date noted in section 4.1(14) of the DC Act and are exempt pursuant to section 4.1(8). The City has erroneously failed to apply this exemption to the Subject Lands. Please accept this letter as a formal complaint on behalf of Savic Homes, pursuant to section 20 of the DC Act with respect to the DCs imposed upon our client. Detailed grounds for the complaint shall follow in due course. On the basis of the forgoing, and on further grounds that will be provided in due course, we respectfully request that the City of Kitchener proceed to schedule a hearing of this complaint before Council. We would appreciate the opportunity to discuss this complaint with 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 NIXONLLP Per: Steven C. Ferri 2