City approves $14 million loan to pay for TWP 240 upgrades

City council approved a bylaw to allow for the front-ending of $14 million in debt to help pay for the Township Road 240 upgrade project.
The upgrade project consists of improving the existing gravel road, which runs between Highway 791 and Range Road 284, by paving it.
There will also be two new bridges built over the Western Irrigation District canals. The project will also see the widening of the bridge over the Alberta Environment canal.
“Council actually approved this project to be included in our Capital budget a few years ago but had the opportunity, with support from grant funding, to move the project up and benefit resident’s transportation routes right away,” said Chestermere’s Mayor Patricia Matthews.
Township Road 240 has been identified in the city’s 2010 Transportation Master Plan as important to support the growth of Chestermere up to a population of 30,000 people.
“It will also support the future growth and development of Chestermere, improve access to the City as a whole, help attract commercial and light industrial businesses, and ease traffic congestion on other major transportation routes,” said Matthews of the project.
Construction on this project is slated to start this year and wrap up in 2019 at a budgeted cost of $22 million.
Funding from the project will come from three sources.
The city has secured $6 million in funding from the Small Communities Grant. An additional $235,000 has been allocated from the Southlink Restricted Surplus Account and about $2 million from the Roads Off-Site Levies Restricted Surplus Account.
The remaining funding for the project comes from the approved new debt which stays within the city’s borrowing and debt servicing capacity.
“As development occurs the City will continue to collect off-site levies that will pay back the front-ending, outstanding, monies owed for this project,” said Matthews.
“Those levies from developers include payments for interest and administration costs associated with the project,” she said, “All and all a good deal for our City- a road that can be used by all sooner than planned and funding from the Province that reduces the overall cost.”