City of Kitchener looks to build 2,000 rental units as Bill 23 fallout continues

The City of Kitchener is preparing for the worst as it plans to mitigate the cost of Ontario’s Bill 23.

Many cities fear the provincial legislation designed to build more houses could result in deep cuts to their finances.

This comes as Kitchener city council approved an application to allow four projects to build nearly 2,000 condominiums and rental apartments across Kitchener.

These plans include a 27-storey building containing 208 units at King Street and Sheldon Street and a 100-unit building at Duke Street West and Madison Avenue South.

"As a city, we want to make sure we see that growth happening in the community, so we can address some of the housing supply and affordability issues that we see in the city,” said Kitchener Mayor Berry Vrbanovic.

This comes as the city prepares itself for Bill 23 -- provincial legislation aimed to increase the building of homes across the province.

The bill has sparked protests across the province and left municipalities concerned about their financial future from the loss of development charges.

The City of Kitchener estimates they could lose an average of $4 million annually from a loss of development charges and $10 to $17 million in lost cash in lieu of parkland.

Despite the financial concerns, some experts believe Bill 23 will have some positive effects.

“It’s getting attention, and that’s important,” he said.

Mark Seasons, Professor at the school of planning for the University of Waterloo said if nothing else Bill 23 has pressed housing to the front line of important issues.

“Municipal politics isn’t going to change provincial policy, so it is what it is and we have to get on with it,” said Seasons.

“The City of Kitchener is now drawing up a plan on how they will best deal with Bill 23 despite a belief that they can reach housing targets without its heavy handed policies,” said Seasons.