TAMRMS#: B06
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Borrowing Bylaw 41/2020 Range Road 260 & Lakeview Business District Servicing (2nd & 3rd readings)
Presented by: Diane McMordie, Director, Finance & Assessment/CFO
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RECOMMENDATION(S)
recommendation
1. That Bylaw 41/2020, being a Borrowing Bylaw to finance the design and construction of water, sanitary, stormwater and road infrastructure necessary to support a Community Amenities Site and the Lakeview Business District, be read a second time
2. That Bylaw 41/2020 be read a third time
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PURPOSE OF REPORT
To recommend second and third readings of Bylaw 41/2020 in order to secure financing to provide servicing to the land donated by Rohit which has been designated by the City as the future community amenities site.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Strategic Priority #4: Infrastructure Investment: Identify, build and/or enhance needed critical or strategic infrastructure and identify and implement associated optimal business and operating models and lifecycle strategies
Secure ownership of RR260 lands for a future community amenities site subject to Council approval.
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
N/A
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
On January 20, 2020, Council passed the following motion
(AR-19-491)
That the Chief Administrative Officer be directed to proceed with a conditional offer and financing options to acquire the lands necessary for a community amenities site of at least 25 contiguous acres within the Range Road 260 Area Structure Plan, subject to Council approval.
On March 23, 2020, Council passed motion AR-20-102, the relevant portion of which is:
That Administration prioritize accelerating the process of pre design and design for servicing the Range Road 260 lands that Council has approved as the site of a community recreation facility, and that Administration present for Councils consideration on April 6 or as soon as possible thereafter any additional or ancillary approvals needed to advance that initiative, including a borrowing bylaw, if needed, and a project charter.
On November 2, 2020 Council passed the following motion:
(BL-20-049)
That Bylaw 41/2020, being a Borrowing Bylaw to finance the design and construction of water, sanitary, stormwater and road infrastructure necessary to support the community amenities site and the Lakeview Business District, be read a first time.
BACKGROUND AND DISCUSSION
On November 2, 2020 - the same day that Borrowing Bylaw 41/2020 received first reading -- Council approved a Project Charter to construct the necessary utility and road infrastructure to support development of a Community Amenities Site within the area of the Range Road 260 Area Structure Plan and to support general development of the Lakeview Business District. Land developer Rohit is the current owner of land intended to become the indoor Community Amenities Site and of adjacent land intended for future outdoor recreational use. The City and Rohit are currently working out the details of a formal agreement for transfer of these lands which is anticipated to be for nominal consideration.
The estimated cost of this infrastructure project is $25,103,000 as set out in the Project Charter. The City of St. Albert has been approved by the Province of Alberta for a grant in the amount of $5,000,108 for this project under the City’s allocation pursuant to the Municipal Stimulus Program. To ensure flexibility, the borrowing bylaw to support this project is for $25,000,000. This will cover the remaining $20.1 Million of funding required in addition to a 25% contingency amount.
The December 23, 2020 advertisement in the St. Albert Gazette started the official 15 day petition period as defined in the MGA. However, a previous notification to the public on November 4, 2020 as prescribed by Council Policy C-CAO-22 Borrowing Bylaw Advertising has allowed a 60 day period during which the public could have organized a petition to oppose this borrowing. As of the close of the petition period on January 8, 2021 the Chief Administrative Officer had not received a valid petition and as such Council may now consider second and third readings of the Borrowing Bylaw.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
In alignment with the advertising requirements within the MGA as well as Council Policy C-CAO-22 Borrowing Bylaw Advertising, notification in the St. Albert Gazette regarding the proposed Bylaw took place on the following dates:
November 4, 2020
December 16, 2020
December 23, 2020
This scheduled series of notification has allowed the public 60 days for consideration of a petition.
IMPLICATIONS OF RECOMMENDATION(S)
Financial:
Passing of Bylaw 41/2020 authorizes Administration to secure the required financing through Alberta Capital Finance Authority (ACFA) or another authorized financial institution. Work will begin on this soon to ensure that funds are available to align with the cash flow requirements of the project.
Legal / Risk:
Section 254 of the Municipal Government Act states that, “No municipality may acquire, remove, or start the construction or improvement of a capital property that is to be financed in whole or in part through a borrowing unless the borrowing bylaw that authorizes the borrowing is passed.”
Program or Service:
If the Borrowing Bylaw is not passed the City will be unable to secure the financing required to support the project. This would then require identification of other funding or the project would need to be cancelled.
Organizational:
None at this time
ALTERNATIVES AND IMPLICATIONS CONSIDERED
If Council does not wish to support the recommendation, the following alternatives could be considered:
Alternative 1. Postpone the project and identify an alternate source of funding.
Alternative 2. Cancel the project.
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Report Date: January 25, 2021
Author: Diane McMordie
Committee/Department: Finance & Assessment Services
Deputy Chief Administrative Officer: Kerry Hilts
Chief Administrative Officer: Kevin Scoble