Lacombe West Area development project moves forward
Above: Stripping and grading work has begun in the West Area lands for the construction of water, wastewater and intersection upgrades.
Lacombe, Alberta (October 11, 2017) – At their regular meeting yesterday, Council passed Bylaw 430, a borrowing bylaw to fund the construction of water, wastewater and intersection upgrades to lands in the West Area Structure Plan, after giving it second and third readings.
“The bylaw proposes to borrow just over $6.6 million dollars with a repayment schedule of 30 years,” said Mayor Steve Christie. “Almost $4 million will be recovered from future offsite levy payments as the west area land, located on the City side, is developed. The City will be responsible for covering the borrowing costs until this development happens.”
Funding for the extension of water and wastewater mains to the lands located within the West Area Structure Plan was included in the City’s 2017 Capital Budget. The City signed funding agreements with Lacombe County earlier this year to extend services to County lands west of the Queen Elizabeth II (QEII) Highway.
With these agreements in place, the City has been in discussions with the land developer of lands located within the city and adjacent to the QEII Highway. The developer has begun the process of moving forward with development of these lands as a result of the proposed extension of the water and wastewater mains. In order to facilitate the development, Council has agreed to move forward with intersection upgrades at Highway 12 and 76 Street. For its part, the developer has committed to pay offsite levies to help offset the construction costs associated with the water and wastewater mains, as well as the intersection improvements.
“The total cost of the project is $15,175,600, with $5,834,400 coming from Lacombe County and $2,202,000 coming in immediate offsite levies from the developer,” said Chief Administrative Officer Dion Pollard. “A further $520,000 will come from the City’s reserves.”
The City is currently working to finalize the development agreement with the land developer for the West Area, which will cover such things as the payment of offsite levies. The borrowing in its current form will not go ahead until the agreement is concluded.
The balance of the project cost – $6,619,000 – will come from long-term borrowing authorized by Bylaw 430. The City is contributing $2,631,000 to the upgrades at Highway 12 and 76 Street, to be funded by tax-supported debt payments.