Lacombe West Area Servicing Project moves forward

Lacombe, Alberta (August 29, 2017) – City Council endorsed the Joint Economic Servicing and the Capital Project Contribution agreements as proposed, then gave first reading to Bylaw 430, a proposed borrowing bylaw for the undertaking of the West Area Servicing Project.

“The City of Lacombe continues to work with Lacombe County to ensure that growth and development along our borders is beneficial to both municipalities,” said City of Lacombe Mayor Steve Christie. “We are working together in our Joint Economic Area to accommodate rural development and sustainable urban growth in a manner that is mutually acceptable, orderly and efficient.”

“It is exciting to take this next step forward in our Joint Economic Area, which will provide for future growth and development in both Lacombe County and the City of Lacombe,” said Lacombe County Reeve Paula Law. “The Lacombe West Area Servicing Project is a great example of how rural and urban municipalities can work together in providing new opportunities that will benefit all our communities.”

The West Area Servicing project will facilitate the development of the Midway Centre Outline Plan – which includes major commercial development, along with a high-density residential and trail system development – on lands located near the interchange of Queen Elizabeth II (QE II) and Highway 12 at the western edge of Lacombe. The servicing project is comprised of two interconnected work components:

  1. Extension of water and sewer services to Lacombe County
  2. Upgrades to Highway 12 and 76 Street

“Extension of water and sewer services through the west area into county lands will help facilitate long-term economic development for our communities,” said Chief Administrative Officer Dion Pollard. “The Midway Centre development supports the establishment of Lacombe as a commercial destination centre on the QE II corridor, which will provide diverse employment opportunities and promote both new and existing business in the city.”

“The shared vision of extending services to the west side of Lacombe and QE II will provide long term benefits to our community. ,” said Lacombe County Commissioner Terry Hager. “We consider this as an opportunity to strengthen our partnership with the City and position the region to take advantage of future economic development.”

The City’s negotiation with Lacombe County has resulted in the creation of two agreements. The first, a ‘Joint Economic Area Servicing Agreement’, covers the terms by which the City will provide ongoing utility service to the County through proposed infrastructure. It is a comprehensive agreement covering everything from terms of payment to service fees and acceptable effluent characteristics.

The second agreement, a ‘Capital Project Contribution Agreement’, speaks to the capital costs related to construction of the service extensions. Both agreements were endorsed by the County at their August 24, 2017, Council meeting.

“We have been working with Lacombe County over the past year to develop a cost sharing model for the extension of utilities to the City’s western boundary and beyond to the county,” said Director of Operations and Planning Matthew Goudy.

The West Area Servicing Project was identified in the 2017 Capital Budget with a project cost of $11,668,800 with funding of $6,354,400 coming from the County and $333,754 from offsite levies and $4,980,646 coming from borrowing. With the addition of the 76 Street and Highway 12 intersection upgrades, additional recognition of offsite payments from the developer and a change in the split on costs with Lacombe County, the total project is now $15,175,600.

The proposed funding for the West Area Servicing project as follows:

  • $6,619,000 in long term borrowing by the City
  • $5,834,400 in Lacombe County funding
  • $520,000 from City’s Water and Wastewater Capital Reserves
  • $2,202,200 from developer offsite and existing offsite levy reserves

The next steps in the process include a public hearing for the rezoning of lands on September 25, 2017, and then second and third readings for the rezoning and the proposed borrowing Bylaw 430 before adoption.

Deven Kumar,
Communications Coordinator
City of Lacombe
(403)782-1236 office
(403)782-5655 fax

Nicole Plewis,
Communications Coordinator
Lacombe County
(403)782-6601 office