Some of the most shocking news in 2024 for Collingwood residents came in the form of a $270-million price tag.
According to information released by the town on Sept. 12 this year, updated costs for the Raymond A. Barker water treatment plant expansion ballooned to $270 million, with an extended timeline to completion in 2028.
Three bids received Sept. 12 from pre-qualified contractors started at $212 million.
At that time, chief administrative officer Sonya Skinner said the three bids took the town “aback.”
She said many municipalities across the province have seen similar infrastructure project cost increases.
“It didn’t make it any easier for us to open those bids and see those prices,” she said.
In March 2022, the estimate for the construction of the treatment plant was $121 million, with an expected completion date of 2026. This is the second time the estimated construction costs have doubled. The March estimates jumped from about $60 million to $120 million.
The town's water treatment plant has been nearing capacity, running over 80 per cent in 2021. Since then, the town has added some more capacity with more infrastructure at the plant, but the plan was to have an expanded treatment plant operating by 2026.
Also this year as part of the ongoing water issues facing the town, the town lifted its development moratorium, or interim control bylaw in July. Originally put in place by a council vote in 2021 and intended to last for one year, the moratorium was put in place due to concerns about water availability in Collingwood. The moratorium was suggested by town staff because the water treatment plant is running out of capacity for new development.
As a result, the town would no longer issue building permits for any construction that would require additional draw on the drinking water supply.
Three appeals to the zoning bylaw amendment at the Ontario Land Tribunal put a halt on lifting the development freeze at the one-year mark in April 2022. Since then, all three appeals have been dropped.
The moratorium, or interim control bylaw, was lifted in July.
While the moratorium was in place, the town implemented a new servicing capacity allocation policy to protect the town’s water supply while the new water treatment plant is being built.
The policy uses a merit-based points system to assist town staff in scoring an application to determine whether it has enough merit to warrant water and wastewater capacity allocation. The system assigns points (out of a possible 95 points) to a development applying for a building permit based on the inclusion of elements in their proposal such as green technology, affordable housing, mixed uses, water conservation measures, employment generation, natural heritage protection, walkability, active transportation and intensification. New developments are expected to hit 50 per cent through the servicing allocation policy points system in order to be eligible for a building permit.
The servicing capacity allocation policy still remains in effect and will continue to remain in effect until the new water treatment plant comes online.
The lowest bidder for the Collingwood water treatment plant expansion – Kenaidan – agreed in November to give the Town of Collingwood more time to figure out funding solutions for the project, agreeing to extend their bid to Jan. 16, 2024.
The Town of Collingwood, along with New Tecumseth and the Town of the Blue Mountains, have been working together with some local developers on a task force charged with finding funding solutions, which includes lobbying the provincial and federal governments for assistance with the costs of the new plant.
During an update on the matter to council at a special meeting on Dec. 11, Skinner told councillors that the town has been continuing to meet with the developers and municipalities task force.
“In that meeting, we’ve looked at what an (early) payment agreement might look like and if there are benefits to entering such an arrangement,” said Skinner. Following the meeting, Skinner clarified that an early payment agreement involves payment of some or all of development charges by developers in advance, sometimes with a benefit to the developer such as guaranteed servicing capacity.
When it came to the costs, Skinner provided words of encouragement.
“Collingwood is ready to go on our portion should council vote to do so,” she said.
Skinner said the town will be seeking an agreement in principle with the Town of the Blue Mountains for their 10 per cent portion of the expansion costs.
“We would see this as a win for us both,” she said, noting that New Tecumseth coming up with their portion of the funds would be a “make it or break it” consideration for the advancement of the project as a whole.
At a New Tecumseth council meeting in September, Mayor Richard Norcross estimated New Tecumseth’s portion of the project would be $150 million, which he said at that time is beyond what the municipality can afford.
Skinner said the estimated opening date as of now for the water treatment plant expansion is in 2029.
