The abandoned Tim Hortons on the corner of Eagle Street and King Street East in Preston is the subject of a dispute headed to the Ontario Land Tribunal.
C.V. Wakely Investments Ltd. is seeking arbitration at the OLT over $462,000 it claims it's owed by the Region of Waterloo for "damages and business loss" related to three of its 18 parking stalls being expropriated for reconstruction of King Street East back in 2019.
It's the same company fighting the region for damages it believes it's owed from the same road project at its Bishop and King street location.
The region expropriated a portion of 303 King St. E. for the reconstruction of King Street East in 2016.
In a notice of arbitration filed last week, the company claims it intended to operate the corner-lot Tim Hortons until "at least" January 2027, but because business losses plummeted during the construction, it pulled up stakes for a new location in Kitchener.
Taking land from private owners is common practice of governments when they need it for public projects. Land owners are then compensated. The company was paid a fee for losing three parking spots, but they claim it's not close to enough compensation for what happened.
King Street East was closed at various times around the restaurant starting in 2019.
It resulted in "access restrictions, traffic stoppages, lane reductions, road closures, and traffic detours" that resulted in a lasting decline in revenues, the filing states.
"This decline in revenues would in time make Store 246 unprofitable and result in its closure on December 31, 2020."
The company found a new location to operate the franchise at 123 Pioneer Dr. in Kitchener starting in 2022.
The abandoned Tim Hortons is on the proposed Stage 2 light rail transit route and is on a list of properties the region intends to purchase or expropriate to accommodate a transit station at the intersection.
The Region of Waterloo did not respond to a request for comment about the notice of arbitration.
The region is in a similar battle with an numbered Ontario company that owns the Tim Hortons at the Franklin and Pinebush roundabout over business losses related to roadwork there.
