HomeMy WebLinkAboutThe Citizen, 2019-05-16, Page 11THE CITIZEN, THURSDAY, MAY 16, 2019. PAGE 11.
Continued from page 1
and $60,000 in studies, surveys and
legal documents, including
archaeological studies and
environmental assessments. At a
total of $215,000, those costs would
average out to $2,700 per lot.
Internal costs, or the cost to run
services to the lots independent of
the water and sewer lines coming in
to the development, are expected to
cost over $3.4 million. This includes
roads, both the internal roads for the
development and the reconstruction
of Lloyd Street; water distribution;
sanitary sewers; storm water
management and storm sewers and
electrical and utilities allowance.
These costs break down to
approximately $43,000 per lot under
the 80-lot system.
External servicing costs include
$800,000 for the water main from
Wingham to the development and $1
million for the sanitary sewer costs.
Over the 80 lots, that $1.8 million
breaks down to $22,500 per lot.
Potter said that, with startup and
internal costs, there is a $45,700 cost
per lot to develop depending on how
many lots the municipality builds.
He also said there aren’t any
grants his firm is aware of that could
help with the project.
Potter said he couldn’t provide
advice as to the financial risks or
rewards associated with creation of
the lots. However, members of the
Huron County Economic
Development Department were on
hand for the presentation to offer aid
if council decided to pursue the
creation of the lots.
Potter also advised council that if
the development proceeded with
North Huron as the developer, the
municipality should adhere to its
own rules of development, aiming
for the same level of complete
servicing the building department
would seek from third-party
developers. He explained this was
important in not setting precedents
for other developers.
FINANCIAL IMPACTS
After Potter and representatives
from the county spoke, North Huron
Director of Finance Donna White
broke down the costs and potential
benefits to North Huron from
developing the land it owns.
Using Potter’s example of 80 lots,
White said that, to bring the lots to a
developable state including
municipal services, roads and
utilities, would cost over $5.4
million. At 80 lots, that would mean
the municipality would have to sell
the lots for at least $68,200 each to
break even.
Hutton Heights is in the East
Wawanosh ward, meaning that,
based on a $200,000 assessment,
each lot would bring in $1,849 in
taxes per year at 2019 rates. Each
property would also pay $1,107.36
in water and sewer costs.
White provided a chart showing
that, if 80 lots were built, after 25
years, the municipality would see
nearly $3.7 million in property taxes
brought in from the properties
($147,919.68 annually) plus over
$2.2 million brought in for water
and sewer costs and reserves.
At 100 lots, the municipality
would see $4,622,500 in property
taxes and $2,768,400 for water and
sewer costs and reserves.
White also explained that having a
bump in population thanks to the
extra development could result in
increased usage of local facilities,
lower unemployment and more
skilled employees in the area, as
well as increased patronage for local
businesses and possibly result in
increased property values with
assessment base growth.
White said that the water and
sewer costs could be borne by the
existing reserves built up through
North Huron ratepayers’ water and
sewer bills. She explained that, at
the end of 2019, there will be
approximately $2.78 million in the
municipality’s water reserve and
$2.75 million in the sewer reserve.
She said that, by borrowing from
those accounts at an interest rate of
2.31 per cent, the costs could be
recovered through the development
and sale of the land.
As for the remaining $3.5 million
for internal servicing, she said that a
long-term loan could be acquired at
3.04 per cent, or the municipality
could fund the development through
new development charges or pre-
sale lots. She also said that capital
investment funds may provide an
option.
COUNCIL INPUT
Councillor Chris Palmer asked
White why she had used a $200,000
assessment for the properties when
he anticipated it would be much
higher.
White explained that she had
originally used a $350,000
assessment, but that wouldn’t be
accurate if the municipality decided
to pursue higher-density residential
options like rowhouses, which
would allow for more units. She
said standalone residential units
aren’t what is needed or affordable
for the community.
Despite concerns about how long
it would take to develop and see an
investment on the lots, Deputy-
Reeve Trevor Seip said he wanted to
proceed with the project because he
didn’t believe “doing nothing”
would be a viable choice.
“We need to get the process begun
so we can sell,” he said. “We have
nothing to sell right now.”
He said council needs to get the
land to a point where the
municipality can offer something
concrete to a development partner.
“We can’t afford to foot the $5
million cost,” he said. “We need to
talk about how to do this
appropriately.”
He said the municipality has no
residential land stock available, so
council needed to find a way to have
these 80 units ready to build.
Councillor Anita van Hittersum
agreed, saying that “people are
desperate for housing” and that it’s
hard for Wingham’s Physician
Recruitment Committee to land
doctors without homes to offer.
Reeve Bernie Bailey agreed,
saying he wanted to go ahead with
the first studies for the property.
“Council was not hired to stay the
way it was,” he said. “We needed to
make this strong leap forward.”
Council directed staff to initiate
archaeological studies and
environmental assessment on Hutton
Heights, and advise the current
renter of the land, who uses it for
farming, that change may be
coming.
As far as budgeting those studies
goes, White said that the
municipality could take up to
$70,000 from the economic
development budget, $20,000 that
had been earmarked for special
projects and $50,000 set aside for
purchase of land.
Bailey also pointed to the
approximately $500,000 the
municipality had received from the
provincial government as part of the
Municipal Modernization Fund.
After council directed staff to start
working on the assessments and
notice to the renter, Bailey said the
move was a “fantastic step forward”
for North Huron.
A Visitor ’s Guide to Hu
r
o
n
C
o
u
n
t
y
What to
S
e
e
Where to
D
i
n
e
Things
t
o
D
o
Museum
s
Trails
Golf Co
u
r
ses
FRE E
Early Spring/Summer 2017
A Vi si to r ’s G uide to H uro n C o un ty
W hat to S
e
e
W here to
D
ine
Things
t
o
D
o
M useum s
Trails
G olf C our ses
F R EE
Mid-Summer 2017
A Vi s i t o r ’s G u i d e t o H u r o n C o u n t y
What to SeeWhere to DineThings to DoMuseumsSnowmobile Trails Map
FREEFall/Winter 2017
A Visitor’s Guide to Huron County
Summer Is
Coming
Summer Is
Coming
& SO ARE THE
VISITORS TO
HURON COUNTY!
Will they find
your business?
Get in Stops Along
The Way and Get
Noticed!
Call or email today for
rates and deadlines for all 3 issues
519-523-4792
info@northhuron.on.ca
stopsalongtheway.ca
Spring ~ 12,500 copies
Summer ~ 14,000 copies
Fall/Winter ~ 10,000 copies
Development looked at to generate taxes
On April 11, the Ontario
government announced plans to
establish 10 regional public health
entities and 10 new regional boards
of health with one common
governance model by 2020-2021.
Subsequently, the Ministry of Health
and Long-Term Care (MOHLTC)
has proposed that the Perth, Huron
and Grey Bruce Health Units be
merged to create a new regional
health entity. The new entity would
come into effect April 1, 2020, and
be governed by an autonomous
board of health.
As a regional health entity with a
population under one million, the
cost-sharing arrangement with
municipalities for the new entity
would shift to 70 per cent provincial
and 30 per cent municipal, effective
April 1, 2019, and stay at that level.
The MOHLTC has told health units
that there is opportunity for one-time
funding for the current budget year
to transition to the new funding
formula.
“These proposed changes are not
yet final. There will be further
consultation with boards of health
and municipalities over the next few
months before legislative changes
are finalized,” says Dr. Miriam
Klassen, Perth’s Medical Officer of
Health. Dr. Klassen says that the
Huron and Perth health units have
been directed by the province and
their boards of health to continue
with the Huron and Perth
amalgamation process, in keeping
with current provincial legislation.
The four counties in the proposed
new entity extend from the Bruce
Peninsula at its northern tip to as far
south as Stratford and St. Marys.
The four counties are predominantly
rural and manage uniquely rural
challenges and opportunities as well
as support the more urban areas of
Stratford, Goderich, and Owen
Sound as well as three First Nations
communities in their public health
mandate.
“While there will be opportunities
to share resources and improve
capacity, the greater geographic
coverage area of this new entity will
require us to ensure that we continue
to focus on local needs,” says Dr.
Maarten Bokhout, Acting Medical
Officer of Health for Huron County.
“The timelines for the proposed
restructuring are quite tight and
during this timeline municipalities
will be coping with changes to the
funding formula as well,” says Dr.
Klassen. “We look forward to
working with municipalities and the
MOHLTC in order to continue
providing excellent public health
programs and services in our
communities.”
REPRINTS
OF PHOTOS
taken by Citizen
photographers are
available to purchase.
ALL ARE IN COLOUR
4x6 - $5.00
5x7 - $6.00
8x10 - $10.00
Phone to order ~
519-523-4792
or 519-887-9114
Health Units react to province-mandated merger
Open house
The Huron Midwives facility, located on County Road 25 on the east side of Blyth, held an
open house, showing off the facilities of the recently redeveloped centre. Above, midwife Kirsta
DiCecco leads a tour of the centre. (Mark Nonkes photo)
BUY? SELL? TRY CLASSIFIED