The developer of a property at 42 Bedford Road in Guelph-Eramosa Township was denied a requested reduction in securities until there is a plan in place to address site-grading issues.
The developer, 1771186 Ontario Inc., requested a cash reduction in securities of $123,511, as suggested by consulting engineer firm, K.J. Behm and Associates Inc., reducing the security the township would hold to $191,762.
However, upon doing its own assessment, township engineering consultant R.J. Burnside and Associates Limited recommended giving a security reduction of just $68,512 due to “the slope stability issues on site and the absence of a detailed work plan or input from a geotechnical engineer,” the firm’s letter said.
That means the township would retain a security of $136,171, with $75,000 set aside for site grading.
The township uses securities on developments to ensure work is done correctly and reaches completion, said Guelph-Eramosa Township CAO Kim Wingrove in a phone interview. The developer gives a cash security to the township for the value of the work that will be done on the property.
That way, if something goes wrong, the township has the funds to fix it readily available. As developers complete tasks on an agreed list, they can ask council to reduce the security and pay back the value of that item, Wingrove explained.
This is all in preparation to make the property suitable for residential development.
The issue with 42 Bedford Road is the site grading, and at the Feb. 2 council meeting, councillors decided to keep all $315,274 worth of securities until there is a plan and cost estimate for the improvements provided to council.
On Feb. 17, Puni Piyadasa, made a presentation requesting council reconsider its decision because of “financial hardship and cash flow,” he said.
Not everyone was pleased with the request.
“I find this situation frustrating,” said councillor Corey Woods, because the township originally opposed the development but was overruled through an Ontario Municipal Board hearing. “We’re in a situation now that I think the township knew back then wasn’t a good situation – and we’re kind of seeing that now where residents’ backyards are basically slipping into your property.”
One option Piyadasa identified as a potential solution to the grading issue is a retaining wall that would cost approximately $8,500, significantly less than the security held by the township for that work.
Piyadasa also said the holidays were largely to blame for the delay in planning reports.
“Because the snow and the Christmas time, vacation, the people couldn’t come to the site and do their job properly,” he stated.
For Woods, the concern is not the money; it’s finding a solution before the situation escalates.
“Basically, backyards are going to fall into your property and I don’t really care if people want to go on vacation,” he said. “This is a problem that needs to be fixed. And this is why I find it frustrating that a problem has been identified and as of right now there’s no solution to that problem.”
Mayor Chris White said that although he understands Piyadasa’s financial hardships, council has to consider the entire municipality.
“We have to look at the best interests of the township and the residents,” he said. “There is concern from some of the residents that there could be some long-term damage far beyond the money we’re talking about here. So I think as a council we have an obligation. We recognize it was an issue; we took it to the OMB; they overruled us. Well, those concerns haven’t gone away and now we’re actually seeing some of them on the ground.”
One of the residents from Bedford Road was at the meeting.
“My yard is one of the ones that’s falling back,” said Dawn Gray. “I am gravely concerned that if a retaining wall is going to be the solution to this problem it will cause problems in the long term and I have concerns, as I have shared with council already, about the security of the condominium development if it is determined that a retaining wall is going to be the solution to this problem.”
Council decided it would wait for the engineering design report before it will release any of the security.
