News clips: County’s EDC supports Innisfil’s pitch for funding
Innisfil’s search for help to finance more than $100 million to service its Hwy 400 corridor expansion, has found an angel investor in Simcoe County’s Economic Development Committee (EDC). At least the idea of it.
As reported here last week, Innisfil CAO, Jason Reynar, who is also Chair of InnServices Utilities Inc, “a wholly owned municipal service corporation to implement the Town’s approved Water and Wastewater Master Plan” has pitched the County two funding proposals:
An interest-free loan (for a period of 10-20 years) with repayment terms that follow the rate of development charge payment (i.e. if development occurs quickly, then the loan is repaid more quickly and vice-versa); and/or,
The acquisition of shares in InnServices Utilities Inc., which would provide an equity investment opportunity for the County of Simcoe.
The EDC’s membership includes Innisfil mayor Gord Wauchope, who according to the April 12 meeting minutes, moved the motion to support “in principal” the request from the Town of Innisfil for financial assistance to service their employment lands.
As well, staff was directed to prepare a further report for EDC “based on the discussions held at the April 12, 2016 meeting of the Economic Development Sub-Committee, for the future consideration of County Council.”
Simcoe County does not have any jurisdiction in water and wastewater, which are functions of municipalities. An arrangement as proposed between the County and Innisfil, would be a first.
Innisfil turns to County for financing help to service Hwy 400 corridor
New Tecumseth Free Press April 13 2016
The Town of Innisfil has turned to the County of Simcoe to help fund an estimated $118 million expansion of its water and wastewater infrastructure to service the Innisfil Heights Strategic Employment Area to “unlock its potential for County wide job growth.”
Two financing scenarios are referenced in a March 19 letter addressed to Debrorah Korolnek, General Manager of Engineering, Planning, and Environment from Innisfil CAO, Jason Reynar, that was included on the County’s April 12 Economic Development sub-committee.
Mr. Reynar is also Chair of InnServices Utilities Inc, “a wholly owned municipal service corporation to implement the Town’s approved Water and Wastewater Master Plan as the Town does not have sufficient debt capacity to undertake the work.”
He reminds the County Innisfil’s plan is to bring water west along Innisfil Beach Road (CR 21) and wastewater west along the 6th Line to the west side of Highway 400 (i.e. 5th Sideroad). Water and wastewater servicing along the 5th Sideroad (CR 53) is also included from the Innisfil boundary at the north, south to the 5th Line. The estimated cost of this servicing is $50-70 million and will be partially constructed in conjunction with the County’s upgrade to Innisfil Beach Road (CR 21), according to the letter.
InnServices will upgrade the Alcona Reservoir, as well as the water and wastewater treatment plants to service growth.
“While InnServices has been working diligently to secure sufficient debt financing, the right solution has not yet been found,” writes Mr. Reynar. “The uncertainty regarding the rate of development charge repayment from the new employers in Innisfil Heights is an added risk for this project. With sufficient financial support, the servicing of Innisfil Heights can be completed by the end of 2018. It is expected that the design build contract for the works will be awarded in the summer of 2016 if funding is secured.”
The two funding proposals include:
An interest-free loan (for a period of 10-20 years) with repayment terms that follow the rate of development charge payment (i.e. if development occurs quickly, then the loan is repaid more quickly and vice-versa); and/or,
The acquisition of shares in InnServices Utilities Inc., which would provide an equity investment opportunity for the County of Simcoe.
“In addition, there are two other opportunities for collaboration. First, there may be further economic development strategic research done and we would like to know if you would be interested in partnering in that retainer for an external firm to assist. That data could assist us better understand (both at the local and County level) the rate of development and land supply and demand factors influencing our economic development strategy. Second, we would like to coordinate a meeting between our lead planners and economic development teams to discuss other ways of potentially facilitating economic growth in this area.”
The Economic Development committee’s recommendation was to receive the letter. It’s expected to be part of the County’s Committee of the Whole meeting on April 26.
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