The city is one step closer to completing the third stage of Ray Gibbon Drive but remains about $30 million short of actually having the road.
Council agreed Monday to spend $17 million and acquire the land necessary for the next stage but there are two questions hanging over this decision: how to pay for a $2.7-million shortfall for the purchase and when will the province come through with more money so the city can build?
St. Albert received $14.3 million a year ago from the province as compensation for building the first two stages to highway standard, leaving the city $2.7 million short for the recent land purchase. On Monday, council passed first reading of a borrowing bylaw but asked administration to compile a report of other funding options. The report is due April 4.
"My gut feel is we can transfer money internally from our reserves," said Mayor Nolan Crouse. "We'll see when the proposal comes back."
Provincial commitment
A bigger question mark is when the province will provide money to cover what the city spends to build the road over and above arterial standard, which is a commitment Premier Ed Stelmach made in 2007.
The first payback instalment of $14.3 million was $5.2 million short of the city's $19.5-million cost, the city says. And a large portion of this most recent land purchase — $13.6 million worth — is a provincial responsibility because it's for extra land required to build a highway, Crouse said.
"If we finish this deal the province owes us $18.8 million, based on their commitments to us," Crouse told council Monday. "That's the money that we have to be asking the province, send a cheque, you owe us that."
The city is 90 per cent done the engineering work for the next leg, which is projected to cost about $30 million just in construction costs. This would leave St. Albert to come up with about $12 million if the province came through with its share, Crouse said.
"If we get that money back then we can perhaps move on and build phase three. I can only do this one step at a time," Crouse said.
Tight spot
Several councillors noted that the city is in a tight spot, with a funding promise from the province but no timelines.
Last week's provincial budget made no mention of funding for Ray Gibbon Drive. With Stelmach having announced his resignation and a leadership race in the works, the next budget will come under a new premier. A provincial election in the not too distant future further clouds the city's prospects.
Nevertheless, council voted to pursue the full land purchase, including what's needed to build a highway.
"I would like to see a two-lane arterial road go through, however we know that within four or five years, that new road will need four lanes," said Coun. Len Bracko.
"I think we have to have confidence and trust and faith with whoever the provincial government is, that they will come through," said Coun. Malcolm Parker. "It might be just a handshake, but sometimes I think we have to work on trust."
