Legal concerns delay decision on Stedman’s building in downtown Liverpool

Eric Fry speaks during a public hearing Wednesday on proposed changes to the Region of Queens land use bylaw. (Region of Queens YouTube)
It will take a little longer to find out if the old Stedman’s building on Main Street in Liverpool will have a new life as an apartment complex.
The Region of Queens held a public hearing on Wednesday on proposed changes to the municipality’s land use bylaw that would allow for more residential space on the ground floor of buildings in the downtown commercial district.
At their meeting afterward, councillors voted to seek legal advice on whether they have the authority to make one of those changes.
Developer Eric Fry wants to turn 194 Main St. into 18 residential units, four of which would be “hotel suites”, and two main-level commercial units of 300 square feet each.
Fry bought the 30,000-square-foot building earlier this year and has been trying to get municipal approval for his apartment proposal since February. His original plan was for 16 residential units, indoor parking, storage and no commercial space. Councillors refused to change the bylaw to allow that to proceed.
After Fry listed his property for sale, the region’s planning advisory committee agreed to consider a revised a proposal and return it council.
Municipal rules require that at least half of a building’s ground floor must be commercial space.
On Wednesday, Fry spoke briefly in support of the bylaw changes. Four Liverpool residents spoke against them.
Tara Druzina said she wasn’t sure whether councillors had the authority under the Municipal Government Act to dictate who uses space in a building. A proposed change would forbid the owner or property manager from using one of the commercial spaces as an office.
“Municipalities regulate land-use types and their characteristics, but discriminating against and between identical uses based on ownership arrangements may exceed municipal jurisdiction,” she told councillors.
Denaige McDonnell said she was concerned that councillors were missing the mark in trying to change the bylaw.
“A common argument for expanding residential use is that there isn’t enough demand for commercial space, but deeper issues are at play here,” she said.
“ Many of our commercial buildings simply do not meet current building code, accessibility, or safety standards that are required for occupancy or for commercial use. And really what that’s telling us is that it’s not a demand problem, but it’s a readiness problem.”
McDonnell said the region is trying to change its bylaw to appease one property owner without having a comprehensive commercial plan.
“Structural changes like this need to be informed by clear, data-driven, county-wide strategy, not as reactions to individual development proposals.
“This proposed bylaw change may offer a short-term perception of flexibility and reward a single proponent, but it comes at a long-term strategic cost. Our commercial spaces are a very valuable part of our community. They are our most valuable assets for the future, and they deserve to be protected, planned and leveraged as part of a larger vision for economic sustainability.”
Susan McGibbon said she was worried the process is moving too quickly without a proper assessment of business in downtown Liverpool.
“I’m not saying that is your fault, council. This goes way back. There’s been no development of an economic plan for the downtown for a very long time. So there’s no research, there’s no data, and there’s been little to no expertise in the understanding of commercial and retail in the downtown.”
Paul Deveau pointed out that during public consultations in the spring, residents and business owners said that there needed to be a downtown plan that protects commercial space while adding more housing.
“But here we are a few months later, and you’re again trying to amend a bylaw without a comprehensive plan.”
Later in the meeting, councillors decided that they couldn’t make a decision on the proposed changes until they got legal advice.
Mayor Scott Christian asked whether staff sought advice on the wording around what landlords can do with the commercial space.
Staff conceded they had not.
Council asked staff to have that information ready for their next meeting on Nov. 25.
Until then, the land use bylaw remains unchanged. Any substantive changes would likely restart the process and require council to have another public hearing.
Once councillors voted for a legal opinion, Christian called a break and met with Fry in his office for about 15 minutes.
Afterward, Fry told QCCR that he appreciated residents’ comments and their passion for the downtown. He said he understands that council has to make sure they have authority to make the changes.
“It’s unfortunate that this wasn’t flushed out as maybe as thoughtfully as it should have been. So, I understand there is a process to remedy, so we’ll have to wait until we hear what those next steps are.”
Email: rickconradqccr@gmail.com
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