WATERLOO - The cleanup of a contaminated property slated for a controversial twin condo tower on a former Canada Post site in the uptown core will proceed with the city's blessing.

With no discussion and a unanimous vote, Waterloo's finance and strategic planning committee endorsed a recommendation to provide financing to clean up 70 King St. N. through a Brownfields financial incentive program. The program would provide a maximum of $2,167,832 through tax rebates over 10 years.

"All cities have industrial sites in our urban areas we're keen to clean up," noted Mayor Dave Jaworsky, referring to both 70 King and a site at 119 Roger St., also granted cleanup funds for proposed residential housing.

"Our brownfield incentive program encourages landowners to remediate the land and put it to new use, bringing employment and homes to uptown Waterloo, which will drive its vibrancy.

"It's a good way to ensure we have more residents uptown."

With two condo towers that will soar to 11 to 23 storeys, the development at 70 King - near the intersection of King, Bridgeport Road and Regina Street - sparked controversy not only for its size, which required council approval to exceed the city's height limit, but for a planned science and culture hub on its lower floors that, it was argued, could pose competition for similar programs run by Kitchener's TheMuseum.

Hip Development's $100-million plan to redevelop the former post office site was given the green light by council by a vote of 6-1 in September 2018.

The project, as envisioned, is to include a highrise 24 stories above Regina Street that meets city rules and an adjacent tower of 11 storeys above King that required an exemption to the four-storey height limit along the historic streetscape.

This latest step, which will see funding from the city accompanied, it is expected, by funds from Waterloo Region - which has yet to vote on the matter - allows the developer to recoup the costs of site contamination from a former dry cleaning business next door that leached onto the property decades ago.

"The city wants to clean up brownfield sites so new development can occur," Jaworsky told The Record, noting the brownfields incentive program has rarely been used in Waterloo in recent times.

It is expected that cleanup costs will be recouped through increased tax revenues once the building's proposed 321 residential units are occupied. Shovels are expected to be in the ground "in the next year," said Jaworsky.

In 2019, the property had a total assessed value of $2,425,000. Once the property is redeveloped, that will rise to an estimated $103,857,000, which would increase annual tax revenue from $15,448 to an estimated $376,980.

"The amount of taxes collected will be significantly more and cover the costs of the clean up many times," noted Rachel Martin, Waterloo's economic development co-ordinator.

"From the city's perspective, they'll get their money back and more."

The towers were endorsed by a public committee that advises council on its uptown vision. Planners have estimated the project will provide benefits to the public valued at almost $4 million in high quality design, public art and community space.

jrubinoff@therecord.com

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Twitter: @JoelRubinoff