WATERLOO REGION — The Region of Waterloo plans to expropriate the Crabby Joe's and Burger King restaurants on Fairway Road to make way for a new bus terminal.

Politicians vote Tuesday to give staff approval to move ahead with acquiring the land at 296 and 300 Fairway Rd. S. in Kitchener.

Coun. Tom Galloway said the region hasn't been able to reach an agreement with Cadillac Fairview Corporation, which owns Fairview Park mall, to replace the existing Grand River Transit terminal there.

Instead, the region will take the two restaurant properties and merge them with a parking lot behind the two buildings that the region purchased from Cadillac Fairview about a year ago.

"They've been quite unwilling to negotiate anything so it forces our hand into having to purchase these properties," he said.

Cadillac Fairview could not be reached for comment.

In 2009, The Record reported that there were concerns from the mall about the terminal location. The terminal is in the west parking lot, and The Bay had several concerns, including people standing in the entrance to stay warm or cool, depending on the season. It was especially trying when students from several local schools waited for transfers.

Galloway said the owners of the restaurant properties are aware of the likely expropriation.

Last year, the region paid Cadillac Fairview $975,000 for the parking lot behind the restaurants, which abuts the future light rail line.

The site will be developed as one but with a separate light rail station and bus terminal.

Once the land is assembled, a transit terminal and park-and-ride facility with up to 200 spaces will be built. The light rail station and line will be built a stone's throw away on a Hydro One right of way. Space for up to five bus bays will be on the north side of the light rail platform.

The terminal will accommodate an additional eight buses and include a facility for driver breaks and shift changes. The facility will have shelters, benches and bike parking.

The old mall terminal will be demolished and converted to parking, according to a regional report.

The expropriation process must begin to ensure the region owns the property in time to complete design this year and construction in 2017.

"We may well come to an agreement with them but this is one of those situations where you do have to expropriate," Galloway said.

About $4 million is in the Grand River Transit budget to build the facility, with about 83 per cent from debentures. Some costs of the project will come from the light rail budget.

Though these expropriations aren't specifically for light rail, a significant number of properties in Kitchener and Waterloo were affected by the project with about 95 per cent for small portions of properties. In total, 180 parcels were affected.

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The region budgeted about $42 million for property acquisition and demolition costs related to the light rail transit project.

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