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th land prices in the uptown Won the rise and limited supply of building space, a developâ€" ment charge exemption for builders in the city‘s core could keep the area vital, according to a Jocal commercial realtor. The high prices for land are already a penalty for developers and further costs could force them to look elseâ€" where, said John Whitney, a spokesperâ€" son for the Kitchenerâ€"Waterloo Indusâ€" trial Commercial Realtors. "It‘s really tough to find buildable space. Development charges today are really expensive and could really affect the price and make people think twice," Whitney said. Uptown is currently exempt from development charges, but that exempâ€" tion expires at the end of 2009. â€" The City of Waterloo is undergoing a bylaw review to examine whether or not to renew the exemption, said Erin Gray, a financial analyst for the city. "The core area exemption is schedâ€" uled under the last bylaw to be lifted, meaning developers in the core are going to have to eventually pay a charge," she said. City council does have the option to grant another exemption, which will push more development into the core, Whitney said. "I think the reason why they exempted that area originally was to spur investment. Waterloo needs highâ€" er density in the uptown and having the exemption will allow for more development," he said. Businesses have known that the store was coming and are prepared, said Patti Brooks, the executive director of the UpTown Waterloo Business Improvement Area. ven though Walâ€"Mart, the jugâ€" Egemaut of department stores, is setting up shop just outside the city‘s borders, Waterloo retailers aren‘t running scared. And once a proposed rapid transit system is built in the core, developâ€" ment in the area will be even more important, Whitney added. "We‘ve been expecting it," she said. "It will have some impact on the uptown core. We expect people to go north to do some shopping." Local retailers prepare for Walâ€"Mart setting up shop Realtor says core doesn‘t need charge But that doesn‘t mean that the By GrEc MacDonaLp _ Chronicle Staff By GrEG MacDonaL Chronicle Staff superstore will destroy business in uptown, she added. _ _ Walâ€"Mart cleared the final hurâ€" dles blocking its construction recently after the City of Waterloo, the Township of Woolwich and the Region of Waterloo approved servâ€" icing agreements for power, hydro and waste. The battle over the store began more than six years ago when local retailers feared that the department store would draw business away. After a lengthy Ontario Municiâ€" pal Board review and a settlement that included Walâ€"Mart contributâ€" ing to an uptown improvement fund, the matter cleared various "If we start building densities uptown now, there will be less requireâ€" ment for cars in the future, so it looks good in the long term too," he said. _ But Whitney‘s argument is only one side of the story, said uptown ward Coun. Ian McLean. McLean hasn‘t made up his mind on which way to vote on an exemption, but he said he understands the presâ€" sure the uptown is facing in terms of development lands. "There‘s a cost to an exemption, obviously," he said. The city could gain an important revenue source from the charges, he added. "I don‘t see it getting any easier to have reâ€"development in the core movâ€" ing forward. We need to look at innovaâ€" tive partnerships and ideas as we renew the uptown," he said. Development charges could help fund extra parking or uptown improveâ€" ments, but if interest in the uptown begins to stagnate, those extras won‘t matter, he said. "One thing we know for sure is that if the uptown area fails, we all pay. If the core doesn‘t work from a retail and business perspective, it costs everyâ€" one," McLean said. The other downside of not renewing the exemption is competition. While Waterloo might not have much space left to develop, neighbouring commuâ€" nities do, McLean said. "There are still spaces open in Kitchener and Cambridge. Developers could easily move on down the road," he said. "The charge could make the differâ€" ence between someone making the numbers working and going someâ€" where else." The city will hold a public meeting on the issue March 31. CITY NEWS | councils recently. "Everything was finally in place and we thought it was finally time to get ‘er done," said Woolwich Mayor Bill Strauss. "I‘m for it now and I always have been." Strauss doesn‘t think that the store will impact negatively on business in the area, and it will do the opposite for the township as a whole. "That area has been designated commercial for years, why hasn‘t it been built on?" he said. "Let‘s use up that land and get some developâ€" ment dollars." And if consumers flock to the Walâ€"Mart, that‘s their decision. "If Madison McFadden, 6, gets a chance to pet Maya Saturday at the UpTown Waterloo Ice Dogs Festival as handler Tom Duchesne looks on. The huskies and the malamute puppies were the highlight of the fifth annual festival. aas uesanar ons INERYTWE people want to shop at Walâ€"Mart, why not?" Strauss said. â€" Brooks is expecting that people will want to shop at the department store â€" and not just bargain hunters. "Walâ€"Mart draws in all demographics," she said. The BIA hopes to counter that loss with a marketing campaign and core cosmetic improvements funded partially by the money won in the settlement. Conestoga Mall is another cenâ€" tre that could potentially be affectâ€" ed by the addition of Walâ€"Mart to the market. But general manager Sandra Stone isn‘t worried. Snow dogs WATERLOO CHRONICLE * Wednesday, February 20, 2008 * 3 "I think that for the majority of retailers, it will have a minimal impact," she said. ____________ And while the Walâ€"Mart is still in, a planning stage, Conestoga Mall is being expanded and renovated. _ "We‘re in the middle of a $52â€" million project. The Bay is under construction and we‘re adding 40 stores," Stone said. The mall is in negotiation with retailers to fill those stores. The manager insists that the renovations aren‘t in response to the Walâ€"Mart threat. "We‘ve been planning this for several years," she said. "The market warrants it." BOB VRBANAC PHOTO