The City of Lacombe and Lacombe County are funding a project to upgrade lands west of the QEII Highway.
Lacombe city council passed a borrowing bylaw at the council meeting Tuesday evening to extend water and wastewater services and intersection upgrades to lands in the West Area Structure Plan.
The city signed funding agreements with the county earlier this year to extend services to county lands west of QEII.
The cost of the project is about $15 million with $5 million coming from the county and $2 million from offsite levies from the developer. Another $520,000 will come from the city’s reserves. The remaining $6 million will come from long-term borrowing authorized by the bylaw passed Tuesday.
Mayor Steve Christie said the bylaw proposes to borrow just over $6 million with a repayment schedule of 30 years.
”Almost four million will be recovered from future offsite levy payments as the west area land, located on the city side, is developed,” said Christie. “The city will be responsible for covering the borrowing costs until the development happens.”
The proposed intersection upgrades will be at Highway 12 and 76 Street. The city is contributing about $2 million to upgrade the intersection and it will be funded by tax-supported debt payments.
The city is working to finalize the development agreement with the land developer for the west area, which will cover payment of offsite levies. The borrowing in its current form will not go ahead until the agreement is concluded.
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