Advocating for our members and the broader local business community is one of the Chamber’s highest priorities. Ensuring Waterloo Region remains both sustainable and economically competitive requires thoughtful, informed advocacy. One of the most important ways the Chamber supports our members is by bringing forward their perspectives directly to decision-makers on issues that impact business confidence, investment, and long-term prosperity. Over the past several weeks, we have engaged extensively with members across sectors regarding the Region’s water servicing pause. The following letter was submitted to Regional Council this week. It reflects that collective feedback and outlines a constructive path forward – one that balances infrastructure renewal with economic momentum and reinforces that Waterloo Region is open for business.
Dear Chair Redman and Regional Council,
This letter reflects the feedback of the Chamber and the many members that have reached out over the last 6+ weeks to share their views, concerns and ideas on how to navigate this issue.
Many of these discussions underscore what the Chamber’s review of the reports and presentations are telling us. Namely, that the current water supply issue is an infrastructure capacity challenge rather than a water shortage crisis.
As we work together toward solutions it will be important to find the balance between the need for infrastructure renewal, improved efficiency, improving the resiliency of the system with appropriate surplus capacity and ensuring that the development applications process is re-opened immediately. And by that we do not mean approvals of development permit applications but with holding provisions put in place. Our members are looking for the certainty that building permits will be issued and the construction that drives our local economy will continue uninterrupted.
In the calculations of the current water usage, the number includes development applications approved but not yet built. These approved applications will take at least several years to come on stream and therefore create an artificially high actual usage rate. This should be a factor heavily in favour of immediately opening up the development application process across the Region.
The current situation has been worsened because of poor messaging and unclear explanations on why we are where we are, what is being considered to remediate the problem and how and when the development freeze will be lifted.
Moving forward, clear and accurate communication on these issues will be essential to maintaining confidence with the community.
A significant item we want to highlight for Council is that the current pause on new servicing agreements is already having tangible impacts on business confidence and investment decisions.
At our Chamber Titans committee meeting this week, an example was highlighted of an international employer considering investing to build an advanced manufacturing facility (involving investment of hundreds of millions of dollars) here but that has since eliminated Waterloo Region from consideration because the Region is seen as “too risky” given the current uncertainty surrounding water.
Another issue of concern that was also noted was that attracting institutional investment for both employment developments and housing developments is often the result of years of sustained relationship-building with financial investors and capital markets. The certainty that the financial investors and capital markets require, is approve development applications without any holding provisions.
Eroding the confidence of Waterloo Region as a good place to do business will have long-lasting damaging impacts on investment attraction, job creation, and prosperity for us all.
With this in mind, it is critical to have a balanced approach that reflects prudent risk management while helping to maintain the Region’s ability to attract housing and employment projects.
A suggestion that has come up through our discussions is for Council to appoint an independent outside expert to assist in evaluating the actual extent of the problem and the practical, short-term solutions available. This individual can give full and complete attention to all of the issues at play. They can act as an advisor directly to Council and coordinate the gathering the information from staff, getting external expert advice, review the data received and recommend options for Council. Most importantly, they can monitor progress, keep on top of the evolving nature of the issue and ensure clear and frequent communication with the community at large.
Finally, we recommend establishing clear, transparent metrics that spell out when the ban on development applications will be lifted.
The indefinite nature of the development freeze in place today must end.
For example, where new water supply is brought online from any infrastructure renewal project undertaken or conservation programs result in reduced usage there should be an even split between approving new development applications and increasing resiliency level of the system as a whole.
We appreciate the complexity of the decisions before you and the responsibility you carry for the region’s long-term sustainability.
As always, the Chamber and our members are committed to being a constructive partner in finding solutions that ensure Waterloo Region remains competitive while continuing to be a responsible steward of its resources.
The Chamber believes it is not only possible but essential to chart a path forward that balances community concern, environmental accountability but also reinforces that our Region is indeed open for business.
Sincerely,
Ian McLean President & CEO
Greater Kitchener Waterloo Chamber of Commerce
