Cochrane council unanimously approved the town’s 2015 off-site levy bylaw, which allocates funds collected from developers to various infrastructure needs, including the proposed Bow bridge and arterial road connections for the bridge.
Updating the off-site levy bylaw, which was last adopted in 2012, was necessary to have the revised levies reflect the new scope of the Bow bridge project, which is expected to be complete by 2018.
Trevor Shouldice, who appeared before council on behalf of Melcor Developments, questioned council on why the cost of the bridge and roads had gone up from $37 million to $64 million, and whether that increase was based on the town of Cochrane’s growth.
Rick Deans, senior manager of infrastructure for the town, said the cost of the bridge and connecting arterial roads had not increased by the $27 million Shouldice claimed, and that the $64 million price tag included several additional road upgrades – including Centre Ave. from 1st Street to Hwy 1A – that were not associated with the Bow bridge project.
Deans explained that the north and south arterial roads connecting the Bow bridge would initially be stripped and graded to accommodate four lanes, but for the first phase of the project only two lanes would be paved, with the other two lanes being paved once growth demanded.
This initial phase of the bridge and road development is budgeted at $37 million.
Deans also said the town’s long-term plans include widening Griffin Road between River Ave. and Spray Lake Sawmills Family Sports Centre to four lanes.
The town is looking to commence construction of the connecting roads to the future Bow bridge prior to the new pool/aquatic centre opening.
Council members, including Mayor Ivan Brooker, asked administration and Lynda Cooke, senior municipal engineer for Urban Systems, if the arterial road connecting the Bow bridge with Griffin Road would be built to the same scope and timeframe even if the new aquatic/curling centre was not going forward.
Cooke, along with administration, said it would, and that the scope of the project was based on the town’s growth and the timeline to avoid closing the road to a brand new $45 million facility that had just opened to the public. The new road and bridge is also expected to take traffic pressure off of Hwy 22 and 1A.
Part of approval of the new off-site levy bylaw was to also rescind a previous council resolution that endorsed the Calgary Sewer Infrastructure Capacity Upgrade Costs for New Development, a fee that has been collected from Cochrane residents since Jan. 1, 2013 and was no longer required, as the town had negotiated a new sewer rate structure with the City of Calgary that did not include a separate growth charge.
Rescinding this resolution resulted in the elimination of the City of Calgary assessment, which was set at $29,984 per hectare.
The 2015 off-site levy bylaw implements a levy range of $127,175 to $148,101, an increase of 25-27 per cent from 2012. With the elimination of the City of Calgary assessment, however, the overall impact to development of off-site costs related to infrastructure will be around four to six per cent, plus the reduced costs being collected for the City of Calgary growth costs for sanitary sewer service.
By comparison, the average levies collected by area municipalities include: Calgary ($203,165); Airdrie ($151,406); Okotoks ($128,812); and Chestermere ($177,393).
Administration indicated that the Bow bridge and two lanes of the arterial roadway would be built first, with the remaining two lanes to follow once development catches up and the money is available.
The Canadian Association of Petroleum Producers (CAPP) provided council with an update on the future outlook of oil and gas production in Canada and around Cochrane.
CAPP manager of natural gas communications and outreach Chris Montgomery said that in the current climate with the price of oil and gas falling, there would certainly be a decrease in the projected amount of wells being drilled in Canada, going from 10,500 in 2014 to 7,350 in 2015.
Annual revenues were also expected to drop by around one third, but Montgomery said the oil and gas sector remains the largest revenue generator in Canada.
Montgomery said part of the reason for the current downturn in oil and gas prices was because the U.S. has become almost ‘self-sufficient’ with the use of hydraulic fracturing of shale gas.
Montgomery reiterated what was reported in the Eagle last week, that drilling activity would decrease in the Lochend area, not only due to the oil and gas price drop but also because the area just north of Cochrane has been pretty much drilled to the extent that it needs to be.
“Eventually, supply and demand will change and the price will go up,” Montgomery said, adding that Alberta continues to have a ‘world-class, highly-valued resource.’
