The County of Simcoe is set to lend $57.7 million to the Town of Innisfil and the idea might not sit well with other municipalities.
The short-term loan, extended for two years with a possible one-year extenstion, is the first of its kind from the County to one of its member municipalities and, in this case, funding will be used to bring sewer and water services to the Highway 400 corridor.
Council will vote on the recommendation at the May 24 meeting.
"The recommendation includes direction for the Warden and CAO continue to investigate further opportunities for strategic regional economic investment and servicing solutions with member municipalities at their municipal meetings," said
"So the notion, if approved, is for the County to play a facilitation role in economic development initiatives that have a County wide benefit."
InnServices (a municipal corporation created to leverage funding not available to Innisfil because its reached debt capacity) a two year loan up to $57.7 million, with a one-year renewal option, at the County's most favourable borrowing rate.
Centred at the Highway 400/Innisfil Beach Road interchange, Innisfil Heights is designated in the County’s Official Plan as one of four Strategic Settlement Employment Areas.
These areas are specifically recognized in the Provincial Growth Plan for the Greater Golden Horseshoe as key employment areas necessary to provide jobs and economic prosperity to the Simcoe Sub-area.
"It is anticipated that Innisfil Heights will have the potential for 2,700 new jobs by 2031 plus additional spinoff employment," wrote
The town has been attempting to provide municipal water and wastewater servicing for several years and has had periodic discussions with the County to assist with moving the initiative forward.
A comprehensive Water and Wastewater Master Servicing Plan was completed in 2012 by the Town which identified that the 20 year requirement for water and wastewater servicing was in the order of $200 Million, exceeding the Town’s debt limit as set out in the Municipal Act. Without a cohesive developer group to provide upfront financing, Innisfil retained PricewaterhouseCoopers LLP (PWC) to analyze the situation and recommend the best way to move forward.
That's when the new corporation, InnServices Utilities Inc. was created and all water and wastewater assets were transferred to the company which is now responsible for all new servicing and capital expansion.
With a loan from the County, the town hopes the servicing project could be completed by 2018.
However, New Tecumseth council isn't impressed with the idea.
At a recent meeting, New Tecumseth councillor Richard Norcross suggested the county is putting the cart before the horse if it lends money without a financial resources master plan and policy in place to stipulate eligibility and terms of loans to municipalities. If Innisfil receives the two-year loan, Norcross said the municipality would have an unfair advantage over its neighbours to attract new business.
Recent investments in infrastructure have readied1,000 acres of land in New Tec for future employers. A $28-million sewage treatment plant is under construction. Other issues include ownership of the new infrastructure and what happens if Innisfil defaults on the loan.
Mayor Rick Milne and deputy mayor Jamie Smith will have an opportunity to debate the issue and vote at Tuesday's County Council meeting.
