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: THE CORPORATION OF THE CITY OF PORT COQUITLAN |
| MEMO -
f
TQ: B. Kirk, DATE: January 30, 1985, FEB i 985
City Administrator, .
FROM: J. Maitland,
City Treasurer, ;
SUBJECT: Servicing South Mary Hill Area,
\ Bo, Va,
7 RECOMMENDATION: po
That Couneil consider Passing separate loan authorization by-laws dn the “
| total amount of $1,022,000 to provide trunk main servicing to the south i
! Mary Hill area. The specific by-laws will be for $630,000 for waterworks
and $392,000 for sanitary sewerage works, ot
BACKGROUND AND COMMENTS: .
po, - The proposed developer agreements for the south Mary Hill area provide for |
| | developers to be repaid by the City for portions of the trunk services to
the area. The passing of loan authorization by-law will fulfill the legal ro
a requirements on Contracting debts imposed on us by part 6 of the Municipal
/ : AG Ea... ,
Gouncil should consider that while our intent is to make repayment out of
: . development cost Charges and latécomer charges from future developments we
i will be required to levy as much as is required to offset possible shortfalls
if development does not occur as planned. The worst scenario I can imagine is:
| ~ Genstar proceeds with water line installation and first phase of subdivision.
. od os ~ interest rates skyrocket again . :
no! ~ no further development takeg place
: od ~ City borrows $550,000 (or so) to repay Genstar
a | ~ City raises water rateg approximately 8 - 10% to cover debt Yapayment,
i ; ‘
| The way this system should work is that Council would give final reading to the
a lean authorization by-law prior to signing of the proposed developer agreements. 7 7
We would only proceed with a security issuing by~law if development doas not | . . oe

Proceed as planned. a 7

a uo | Maitland.

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