Prince Edward County has worked out financing agreements that will see the developer of two subdivisions in Wellington prepay a portion of its development charges.
Kaitlin Corporation is providing letters of credit amounting to $4 million in exchange for the County reserving water/wastewater capacity for these new housing developments.
The developer will also pay all of its development charges up front once they receive final approval of their plan of subdivision, rather than paying once building permits are issued.
Mayor Steve Ferguson says the agreements mean the developer can move forward with greater certainty, and the municipality can ensure that growth pays for growth.
Prince Edward County is focused on the immediate and short-term water and wastewater infrastructure needs in Wellington with a number of infrastructure improvements that need to happen in the next 10-20 years to accommodate the growth that the municipality is projecting.
The estimated cost of infrastructure improvements is $68 million, with $52 million to be funded by developers via development charges.
The remaining $16 million is identified as benefiting existing customers and would be debt serviced over a 30-year term.
The debt servicing costs would be recovered through these upfront financing agreements, and therefore will not be an addition to the water and wastewater rates.
In return, the developers will gain the certainty that they can connect their developments to municipal water and wastewater services when the services are available.
Construction of the housing units is anticipated to begin as early as fall 2022 and continuing into 2025.
