Lacombe city council is poised to borrow $4.7 million to develop much-needed industrial lots.
Council gave first reading on Tuesday to a borrowing bylaw for the second phase of the Len Thompson Industrial Park on the city’s east side.
The city bought 33 acres last year to provided 14 industrial lots. As well, 10 acres was put aside to allow the city to consolidate all of its public works facilities on one site.
Mayor Steve Christie said the industrial park is much needed.
“We’re definitely out of commercial and light industrial land,” said Christie on Wednesday.
Construction is expected to start in the spring with the first lots available in late spring or summer.
Initially, the city hoped to begin developing and servicing the site earlier this year. But when tenders came in higher than expected, the city opted to delay and re-tender.
New tenders came in lower, but were still higher than original estimates requiring the city to increase its borrowing to $4.7 million from $4.1 million. The amortization period is a maximum of 15 years.
The total cost of developing the industrial site is estimated at $5.2 million, which includes a $218,350 donation and $330,000 drawn from the city’s land reserve.
The city will get much of its money back as lots — which are expected to sell for an average price of around $250,000 per acre — are sold.
However, the cost of developing the public works yards will be tax supported. The city paid about $1.8 million for the 10 acres.
Council is expected to give the bylaw second and third reading on Dec. 9.
pcowley@www.reddeeradvocate.com