Not having individual kitchen units is cooking up controversy for the developer of Kingsmere Retirement Suites in Alliston.

The Kingsmere development is being built at the corner of Industrial Parkway and King Street. Monday night New Tecumseth council heard a development charges complaint from Kingsmere developer Nautical Lands Group. Nautical Lands argues the municipal charges are unfair for the type of development it’s building.

After hearing arguments from the town solicitors and Nautical Lands representatives, councillors met briefly in-camera to discuss the complaint.

Deputy Mayor Rick Milne, filling in for Mayor Mike MacEachern who was not at the meeting, said council agreed to deny the complaint. At this time, Milne said council doesn’t have the basis to do anything. Councillors Dennis Egan and Christine Brayford were also absent from the meeting.

What is being disputed is the interpretation of how residential and non-residential use in New Tecumseth’s bylaw is defined.

Non-residential is described as a building or structure for uses other than residential or industrial. A residential structure is a building or structure with parts being used as a dwelling. To qualify as a dwelling, rooms must have sanitary facilities and a separate kitchen for their exclusive use.

Nautical Lands lawyer Barbara Sinclair, of Lang Michener LLP in Ottawa, said the wording of the New Tecumseth development charges bylaw is not specific enough.

For Kingsmere, which sells itself on being affordable retirement housing, she said the development doesn’t fit into the definition of a dwelling unit because there is a communal kitchen where daily meals will be provided for residents. However, she said Kingsmere also doesn’t fit into the parameters of a non-residential dwelling either.

“It just doesn’t have a form of housing to calculate the rate,” said Sinclair. “We don’t really fit in anywhere.”

To date, Nautical Lands has paid the municipality $1,036,437 in non-residential development charges.

Nautical Lands Group director of development Peter Gregor said if the company had been charged residential development fees it would have paid $939,449. That charge includes the residential units and separated clubhouse, which isn’t a residential development and charged accordingly. These numbers only account for the municipal portion of taxation and there are additional costs for county and educational charges.

Compared to what the company has paid in other municipalities for similar developments, Gregor said the New Tecumseth development charge is at least 30 per cent more and is unfair.

Hemson Consulting Ltd. partner Craig Binning said both definitions in the bylaw are ‘quite clearly and intentionally stated that way.’

The basis for a residential dwelling is people having the capability to sustain themselves within their room without a communal kitchen. That is not possible with the Kingsmere suites.

Binning said what Nautical Lands is proposing for Kingsmere is institutional in nature, and more akin to a hotel than a residential dwelling.

“It’s performing a function that is not just residential in nature, it’s a broader scope than that,” said Binning.

Gregor confirms the retirement home will employ 30 to 35 people. It will also have about 120 senior residents.

“It’s a much bigger place of living (than employment),” said Gregor.

New Tecumseth solicitor Jay Feehely said it’s a stretch to say the town bylaw doesn’t apply to the Kingsmere development.

“The bylaw is solid and does apply in this case,” said Feehely.

He said there is no basis to recalculate the development charges for Nautical Lands Group based on the current bylaw.

Having been denied at the municipal level, Nautical Lands can file a complaint with the Ontario Municipal Board.

Gregor said he is unsure of whether or not the company will move to that level. On-site construction of Kingsmere Retirement Suites will continue on schedule while the development charges are sorted out.

The rooms available at Kingsmere range in size from 330 square feet for a studio apartment to 711 square feet for a two-bedroom suite will be available. Monthly rates vary from $2,495 to $3,995.

Highlights of the building include a private dining room, games room, hair salon, corner store, fitness area, movie theatre - with theatre-style seats, a walking path around the building’s exterior and an attached club house. Each room has a kitchenette and there is a full common kitchen in the clubhouse, although meals are provided and included in the monthly fee.

The development is scheduled to complete this summer, with residents being able to move in September.