The path to approve the next stage of Springwater Township’s community hub project has been detoured by Craig Road.
A request to approve the next step in the community hub development — a multi-purpose complex that would include an aquatics centre, a library and a gymnasium — at the corner of Bayfield Street and Snow Valley Road in Midhurst has been put off until February of next year.
At the township’s recent council meeting, some members of council struggled with the idea of committing the township to more than $130 million worth of construction — Craig Road ($61 million) and the community hub ($76 million) — despite the fact that both projects will receive funding through Development Charges (DC).
Deputy Mayor George Cabral's fiscal concerns were shared by Councillors Danielle Alexander, Anita Moore and Phil Fisher.
“My problem is how do we move forward with two significant projects that are in the tens of millions of dollars,” Cabral said. “For me, I’m having a hard time trying to justify supporting this (community hub request) tonight until I know a little bit more of where we’re at on Craig Road.
“How are we going to manage that? I don’t think we’ve been provided with the info that will help me understand how we’ll pay for all of this,” he added.
“Craig Road is 100 per cent DC-funded,” said Jeff Schmidt, chief administrative officer for Springwater. “We don’t have those DCs today and so we will have to do some interim financing to make sure we can proceed with that.”
He reminded council that at the last council meeting, council approved staff’s request to submit an application to the provincial government for funding assistance. If accepted, the township could potentially receive up to $20 million to aid in the cost of building the road.
Additionally, since the road is slated to become a county road at some point in the future, Schmidt suggested that perhaps, somewhere down the road, the county might be able to assist with some of the funding.
“We’ve had discussions with them (Simcoe County) to see if there’s an opportunity for them to assist us, maybe with Phase Two of the project or even Phase One,” Schmidt said.
According to a Craig Road update report prepared by the township’s engineering department that council received on Oct. 2, the township has completed the conceptual design and hired Ainley as its roadway design consultant. The township has also completed the archeological and environmental assessments.
The report noted that Phase One is approximately 60 per cent complete but “progress has been impeded as a landowner has not provided the required access to their lands.”
Phase Two design work has started.
In regards to the community hub, Schmidt said it too may benefit from funds generated through DCs.
He said the township has suggested changes to its DC bylaw that would result in the township receiving DC funds for not only the community hub but also the township's new fire station on Snow Valley Road.
“As those DCs are being collected for Craig Road through those new houses, we will also be collecting DCs for the recreation piece for our community hub,” he said.
He tried to refocus council on the request that was in front of them — the community hub architectural and engineering service project which staff recommended be awarded to Colliers Project Leaders for a cost of $193,530.08 excluding HST.
“What we’re asking for is this next stage of this project to proceed,” Schmidt said. “If council agrees with this request tonight, we’re probably looking at the end of this term of council where this portion would be completed and would provide for an opportunity to enhance, if you will, or revise the numbers that have been provided, what Weston had originally provided, to get a little more granular as it relates to both operating and capital costs.
“At the end of this stage, council has the opportunity to say ya or nay.”
Schmidt said the report would provide a more detailed analysis of the needs — what the community hub will look like, what the community is requesting and the cost.
To give council a clearer understanding of the township’s financial status, Schmidt said staff will update the township’s long range financial plan in 2025, which will provide council with all of the different initiatives the township is working on and provide them with a better understanding of the township finances from a financial sustainability perspective.
“I get what you’re saying tonight but I would say, really, this next process is just the next stage to give you more information about this community hub project.” Schmidt reiterated. “It’s not committing you.”
Greg Bedard, director of finance for the township, tried to allay council’s concerns about financing the projects.
“Where we’re at now, we’re looking to move forward with Colliers to gain more information to provide those projections to you,” Bedard told council. “We need the up-to-date costing on the project so we can put that into our projections into DCs and when we’re going to collect those: to look at when we’re going to collect, when we’re going to cash flow, what that interim financing looks like.
“Right now we don’t have the information needed, with respect to this project, to share with you,” he added.
Bedard said this project, in consultation with some of the DC work council has requested, will give staff the opportunity to provide that information to council in an effort to provide it with a bit more comfort moving forward.
Council voted four to three to refer the motion back to staff who will report back to council in February, next year. As part of that report, staff will include the estimated DCs that are anticipated in the next two to five years.
