Town to draw $8.3 million from developer’s securities to finish work in Southfields Village

By Zachary Roman, Local Journalism Initiative Reporter

The Town of Caledon has placed a developer in default on three subdivision agreements. 

According to a Town of Caledon staff report, Digram Developments Caledon Inc. did not finish required work to complete three subdivisions (43M-2077, 43M-2096, and 43M-2051) in the Southfields Village community. 

Subdivisions 43M-2077 and 43M-2096 are located on the west side of Kennedy Road between Dougall Avenue and Newhouse Boulevard. Subdivision 43M-2051 is located on the east side of Learmont Avenue between Larson Peak Road and Abbotside Way. 

The staff report said due to the unfinished work, many residents have been unable to use their amenity spaces, finish their driveways, or experience a walkable neighbourhood for years. 

“Town staff tried to work with the developer to have outstanding works completed in accordance with the subdivision agreements and bring the subdivisions to assumption, however there has been little to no cooperation from the developer,” reads the report. 

On April 16, the Town sent a written notice to Digram notifying the company it would be placed in default on the subdivision agreements if a response was not received by April 29. The report said no response was received. 

In total, the Town of Caledon is drawing $8,381,062 from Digram's securities for the purposes of completing work in the three subdivisions. 

In 43M-2051, minor repairs need to be done and top asphalt has to be completed. 

The staff report said a substantial amount of work is required to complete 43M-2077 and 43M-2096. 

The report said in 43M-2077, where one detached building and a condo of 33 units remain vacant, Digram only completed 50 per cent of top curb and sidewalks. This means the Town will need to complete the top curb, sidewalk, grade the boulevard, add plantings, and complete top asphalt. 

The report said in 43M-2096, 70 per cent of top curb and sidewalk work is outstanding, so the Town will need to do the same works mentioned in the above paragraph.  

The Town of Caledon also needs to remove a topsoil stockpile from a park in 43M-2077 that was supposed to be removed by August 31, 2021. 

“The Town requires topsoil for final grading around the homes and the boulevards and therefore we will be slowly removing the material when needed in the subdivisions,” reads the report. “It is expected that the stockpile will be completely removed by late fall of 2024 and park construction commencing late 2024 or spring of 2025.”

At Caledon Council's July 9 meeting, Councillors approved a request from Town staff to hire SCS Consulting Group Ltd. to represent the Town as it completes the required work. 

Staff said as SCS is the original design and contract administration consultant for the developer, using the company will save time as they have knowledge of the projects.

The Town is using funds drawn from Digram's securities in the amount of $477,661.44 to hire SCS.

The request from Town staff will come to Council's July 23 meeting for final approval.