The province has kicked in another $4 million to reimburse the city for the first two stages of Ray Gibbon Drive.
Premier Ed Stelmach promised to reimburse the city for any costs involved in building the road to a highway standard rather than an arterial road. Last year the province gave St. Albert $14.4 million. The addition of $4 million brings it close to wiping out the $19.5 million the city estimates as the extra cost it’s incurred to date.
Mayor Nolan Crouse was pleased with the funding injection but admitted it hasn’t been an ideal arrangement to be building the road first then awaiting reimbursement when the province can afford it.
“It’s not easy. But it is progress,” he said.
The city has completed two stages of Ray Gibbon Drive, which connects Anthony Henday Drive with Giroux Road. In March council agreed to spend $17 million to buy the land required for stage three, which will extend the artery to Villeneuve Road at a projected cost of roughly $30 million.
The city applied the province’s $14.3 million to the land purchase and was considering borrowing the outstanding $2.7 million. The new money means the city won’t have to.
Council passed first reading of a borrowing bylaw but will kill that Monday, Crouse said. The portion of the $4 million not required for the land purchase will go into a reserve to be used for future spending on the project, he said.
The next step for city council will be to decide how to fund the third stage, he said.
Coun. Roger Lemieux announced this week that he wants to explore whether a P3 arrangement could be used to build the next stage. That issue is expected to come to council May 2. Borrowing will also be given consideration.
Crouse has been pushing the province for a guarantee that costs will be reimbursed as soon as the city completes road construction. That guarantee hasn’t been forthcoming but the province has repeatedly guaranteed the city will be paid eventually, Crouse said.
Given that, he’s prepared to pursue construction of stage three.
“We have to go on some sort of faith that we’re going to get paid,” he said.
Crouse estimates the province still owes the city $15 million for extra land the city bought to accommodate a six-lane highway.
From the provincial government’s point of view, the latest cash injection is part of an effort to build an effective and efficient transportation network that will foster economic growth, said Transportation Minister Luke Ouellette in a press release.
“The province is following through on its commitment to the City of St. Albert by investing in our future highway network and protecting the right-of-way for future growth,” he said.
