Town councillors and staff are hoping a federal grant will help cover the $173,000 cost of providing water service to an industrial area in the northwest quadrant of Erin village.
Providing the service to the Pioneer Drive area would encourage development, create jobs, and provide tax revenue, planner Sally Stull told council recently.
Given that “it would seem unlikely” that nearby businesses would pay up front for the extension of town water line, Stull suggested the town apply for a grant – which would cover 50% of the total cost – through the federal government’s Southern Ontario Development Program.
However, she noted in her report that funds could be recovered in the future through development charges for new construction and connection fees for existing buildings.
“For example, a 100- by 60-foot building would pay a connectivity fee of $10,980,” Stull told council.
When informed the work would include fire hydrants, councillor Ken Chapman said the town should first worry about another subdivision that has been “on the back burner” for years, awaiting the installation of hydrants.
Chapman said everyone has to realize that the value of the affected land – and thus, taxes – will also go up if the water service is extended.
Stull replied business owners realize that. Council unanimously approved a resolution stating it supports the grant application for the work.
