Township to sign funding strategy with developers in South Fergus for engineering design
Agreement is first step for getting infrastructure in the ground
ELORA – Centre Wellington is gearing up for development in the South Fergus development and council, on April 13, approved a funding strategy to move forward with detailed engineering design to get infrastructure in the ground.
The township has negotiated a service financing commitment agreement with the landowners, Westbow Fergus GP Ltd and Salem Development Company.
It sets out the work the township will do and pay for, and the contribution the landowner/developer will make for work that includes roads, water and wastewater, stormwater and transportation studies required by the province to access Highway 6.
“The agreement is an important step in leveraging previously secured provincial funding under the Housing Enabling Water Systems Fund and ensuring that the required infrastructure design work can proceed in advance of subdivision applications,” states the report by managing director of infrastructure services Colin Baker.
The agreement:
- authorizes the township to undertake engineering design, obtain regulatory approvals, and prepare contract documents for tendering;
- confirms the cost of the engineering work is shared among the benefiting landowners and the township, subject to available grant funding and future development charge recoveries;
- establishes a clear financial framework, including deposit requirements, invoicing and reconciliation of actual costs; and
- allows the township to proceed with issuing a request for proposals and retaining qualified engineering consultant teams once the agreement is executed and funds are received.
At this point, the scope of work is engineering design and does not include construction costs. It will still be many years before homes are actually constructed.
The engineering design will look at the Guelph Street corridor, including a plan for installation of new watermains, sanitary sewers, storm sewers, curbs, sidewalks, multi-use paths, streetlighting, road reconstruction of Guelph Street from Elora Street to Cummings Crescent, and the extension of municipal services through Ferrier Park and Guelph Street to Union Street.
It will also consider the Union Street corridor, including road reconstruction and urbanization between Guelph Street and the Fergus wastewater treatment plant, and new water, wastewater and storm sewers, plus pedestrian and street improvements.
“These works are intended to provide the backbone infrastructure needed to service the initial and future phases of development in the South Fergus area,” the report states.
The Ministry of Transportation requires some studies that will also be included in the agreement. They include a multi-development traffic impact study and a highway access management plan for Highway 6.
The detailed design is expected to be complete in the first quarter of 2027, and construction of the infrastructure would begin later that year.
The total cost of the engineering work is over $1.5 million.
The provincial grant would cover $518,300; the township would pay $696,700; and the developer will fund $300,000.
The township’s portion will be funded from various reserves.
