Title
231 Street Between Highway 16 and Highway 16A
Proposed Motion
That Council direct Administration to include the construction of 231 Street between Highway 16 and Highway 16A in the 2020 Budget.
Body
Administration Recommendation
Administration supports the proposed motion.
Purpose
The construction of 231 Street between Highway 16 and Highway 16A is intended to solidify the County’s continued support for current and ongoing economic development opportunities in Acheson Zone 2 and Acheson Zone 4.
Summary
The Economic Diversification Department has been working with both developers and potential businesses in the Acheson Zone 2 and Zone 4 areas. The feedback has consistently shown that 231 Street is a high risk area for development due to uncertainties with cost, design approvals, and other jurisdictional approvals (City of Edmonton, the Province and CN Rail).
To mitigate these risks, Administration included $600,000 in the 2019 budget to initiate the design and construction preparation work (permits, approvals, land acquisitions, design, etc.) that will enable construction to begin in 2020.
As the budget is being prepared for 2020, Administration will continue to consider the availability of up-front cost sharing with the Zone 2 and Zone 4 developers, include the possibility and timeline of off-site levy recoveries, and identify alternative funding sources, if any.
The initial order of magnitude of cost for this project is anticipated to be approximately $8,000,000. The cost estimate will be further refined as the design process is completed.
Completing the design and providing early approval for project funding is expected to create a level of confidence and assurance to the development community that will further enable decisions towards positive economic investment in the area.
Strategic Plan/Policy/Legal/Staff Implications:
Supports Parkland County's Long Term Strategic Plan objective of "Strategic Economic Diversification"
Financial Impact:
Cost: $8,000,000
Source of Funding: Debenture Borrow (recovered through off-site levies)