Over the past year, Project 9 has quickly become the most urgent city matter and its ramifications extend well beyond the price tag. This single piece of infrastructure, a massive sewer trunk line that at points a pickup truck could drive through, will essentially map the future growth of the city.
Developers have purchased land, preliminary site work has been completed and area plans have been drafted, but until the city can get a $40-million sewer project in the ground those lands will remain undeveloped.
Not only will this project service lands in the south-western portion of the city, it will be the catalyst for other projects that will extend sewer services to other development areas.
The city must now find $40 million to pay for the project that was only a few months ago pegged at $27 million. City administration sent a small army of experts to the d office on Wednesday to thoroughly explain its options.
Ranging from passing the cost onto taxpayers, to having a multi-billion-dollar company front end the construction, every option comes with its inherent risks and benefits.
Perhaps the riskiest option, though, is for the city to continue delaying this project. In a worst case scenario, failing to get Project 9 in the ground could potentially open the city up to costly lawsuits. If it is not built within a reasonable time frame, St. Albert could become a development no-man’s land for the foreseeable future. If the city’s ambitious growth outlook is right, without Project 9 that would mean tens of millions in revenue losses over the next decade.
Growth predictions are tricky though. Back in the 1970s outlooks pegged St. Albert’s current population would be more than 100,000 and that, of course, is not the reality.
Looking at the facts around Project 9, it is no longer a matter of when it should be built, but why hasn’t it been built yet. Through offsite levy fees, development agreements and developer commitment, millions have been or are poised to be invested in these lands. While some city officials said that developers entered into these agreements with full knowledge of the servicing situation, a recent letter signed by south Riel developers GWL Realty, Averton Homes and Cape Construction suggests otherwise.
While the tone of the letter was friendly and professional, the undertones were unmistakable. Developers who purchased land did so with the expectation that sanitary services would be adequate. Without Project 9 that is not the case.
The city has $21 million – offsite levy funds collected – available to kick-start this project and a plan to use future offsite levies to pay off the remainder if it chooses this option.
While the whispers of a Warren Buffett company perhaps swooping in to save the day might be ideal, the city can no longer drag its feet and we do not have time for months of negotiations.
Too much time has been wasted. The city has made commitments to developers who have spent millions to help grow St. Albert. It is time to get to work and honour those commitments.
