The former Charles Street Terminal in downtown Kitchener will be redeveloped, but it will happen in phases.

That was the decision from regional council Tuesday afternoon during a sustainability, infrastructure and development committee meeting.

The site functioned as a bus terminal for Grand River Transit and was decommissioned in 2019. It was then used as a drive-thru COVID testing centre during the pandemic, but it has sat empty since.

Matthew Chandy, director of Build Waterloo Region, told councillors staff recommended the phased approach to the terminal’s redevelopment because higher construction costs and elevated interest rates are impacting the development market.

“The feasibility with one large development on the site at once, is going to be a challenge and that’s the market reality that we’re seeing,” Chandy said.

The phased approach is also a more flexible option, he said, because it would allow the project to move forward in “smaller chunks” while region works with private or not-for-profit developers.

“It might allow us to adjust to changing markets that we’re continuing to see,” Chandy said.

Through the community engagement portion of the project, Chandy said people expressed their desire to see a mix of uses for the site, including affordable housing, green space and multi-functional spaces for the community.

Potential to be a meaningful landmark

Several ideas for what could be done with the site were proposed when community engagement began in 2021, including having an Indigenous hub as part of the site.

The hub was envisioned by Bangishimo Johnston and Amy Smoke of Willow River Centre in Kitchener.

Johnston told councillors Tuesday they are still committed to that vision. Johnston said the new site should be accessible to everyone as it is in close proximity to Victoria Park, an area that is accessed by many, including those in the Indigenous community.

“We’re encouraged that the region is exploring a phased approached that includes partnership with not-for-profit organizations and community serving spaces,” Johnston said.

“That aligns closely with what many of us have been advocating for since the beginning.”

Johnston also called the redevelopment project a rare opportunity that “has the potential to be a meaningful civic and cultural landmark.”

Chandy said environmental studies on the site have confirmed soil and groundwater contamination, which is typical of urban sites and a risk assessment is underway to establish site-specific standards and risk management measures.

He added that approval of the risk assessment is expected late this year, with a record of site condition to be completed by the end of 2026 to support future redevelopment.