According to Mr. Reel’s evidence, these restrictions were put
in place as portions of the interchange lands were sold by
274 Canada to other parties.
 The 274 lands are currently occupied by low rise retail and
commercial uses. QuadReal views these as interim uses that will
be replaced as greater intensification occurs in the City of
Vaughan. QuadReal’s investment objective is to redevelop the
274 lands into a vibrant, mixed-use community, consisting of residential and office uses with supporting retail, in accordance with
the planning regime approved by the City of Vaughan and taking
into account what the market will support. 274 Canada began the
process of developing the 274 lands in the last quarter of 2016.
QuadReal has partnered with an experienced real estate development company to develop two 15-storey residential condominium towers and approximately 475 stacked townhouses on
a vacant site that is part of the 274 lands. QuadReal intends to
develop the other portions of the 274 lands in the near future as
the market allows for it, including the lands along the south side
of Highway 7 that are immediately west of the subject site.
 The proposed Icona redevelopment requires the deletion
of the restrictive covenants because, among other reasons, it
includes non-hotel uses.
 According to Mr. Reel’s affidavit, QuadReal views Icona’s
development proposal as having the potential to negatively impact
its own plans for future residential and commercial development
on the 274 lands. The 1,649 new residential units proposed by
Icona on the subject site will compete in the same market segment
as the planned and future residential development on the 274
lands. QuadReal is concerned that, if built, the Icona proposal will
increase the supply of residential units on the interchange lands
and negatively impact QuadReal’s ability to proceed with the
development of the residential units planned for the 274 lands. In
addition, Mr. Reel expressed concern in his affidavit that if
upgrades to the water and sanitary supply are needed to serve
future development on the interchange lands, 274 Canada’s plans
may be delayed while those upgrades are constructed and 274
Canada could be required to “front-end” the costs of those
upgrades by the City of Vaughan (that is, pay for the upgrades with
other developments contributing as they are approved).
 274 Canada has refused to consent to modifying or discharging the restrictive covenants in the restrictive covenant
 274 Canada delivered responding material in opposition to
this application. RI Vaughan did not deliver responding material,
but it was represented by counsel at the hearing of this application