The 224-unit Bonaire Highlands subdivision at the north end of Fergus has moved another step forward as council endorsed a subdivision service financing agreement on Dec. 16.
Council approved the agreement, prepared by managing director of planning and development Brett Salmon.
The development, north of Sideroad 18, involves a strip of land which extends from Highway 6 to the Beatty Line.
In 2008, the draft plan of subdivision was approved by the Ontario Municipal Board, with the township in support.
The township, Wellington County and the developer agreed upon the form of the subdivision and conditions of draft approval prior to the hearing.
In 2012 the developer completed an agreement with a builder partner, MacPherson Builders and an application was made to the Ontario Municipal Board for modifications to that draft plant.
Conditions included a service finance agreement to be reached between the township and the developer, to provide for the financing of external service improvements.
Centre Wellington requires the development to have municipal services.
As a result of extending municipal (water and sewer) services work required includes reconstruction of a portion of Beatty Line, between Sideroad 19 and Sideroad 18.
In addition there would be reconstruction of sections of Sideroad 18 from the Beatty Line easterly, and from Highway 6 westerly, to an urban standard complete with municipal sewer, water and storm drainage, curbs, gutters, streetlighting, and sidewalk.
The developer has been working towards the development of the first phase of the subdivision since the approval of the modifications to the draft plan in 2012.
Throughout that time, township staff and its engineering consultants have been working with the developer’s consulting team on the approvals needed for the external services, including the proposed service finance agreement.
With negotiations complete, an agreement was placed before council for approval.
Salmon noted that under the terms of the agreement, the developer will be responsible for front end financing of the estimated cost of all improvements to Sideroad 18, as well as 50 per cent of the estimated cost of improvements to Beatty Line (the balance of Beatty Line costs have already been funded by the developer of the Beatty Hollow subdivision).
In addition, the developer will make a one-time contribution to the financing of the extension of municipal sanitary services on Highway 6/St. David Street North, in the amount of $471,000.
This amount assists the township in funding the extension of the sanitary sewer on Highway 6/St. David Street North as a future township project.
In the interim, Bonaire Highlands will be serviced via the Beatty Line sewer and a portion of the units in the development will be diverted to the Highway 6/St. David Street trunk sewer in the future when it is completed by the Township.
Salmon noted the terms of agreement are similar to others approved by the township since 2006, including South Ridge, Elora Meadows, and Mazta Holdings/Westminister Highlands.
Salmon explained the main feature of all of these agreements is that the developer finances up-front costs and is reimbursed growth related costs as development proceeds.
“In addition we have prepared a subdivision agreement to provide for the installation of services within the development itself. The subdivision agreement implements the conditions of draft approval of the plan.”
Council approved the report and the service finance agreement without further discussion.
