Changes are being made to the city’s development and servicing agreement with the Holy Trinity and Prairie South school divisions for construction in the Westheath subdivision.  

The amendments would see the school divisions responsible for tendering and constructing all infrastructure within Westheath Phase 5 (joint-use school and residential lots) and Phase 6a (residential lots). The school divisions will then invoice the city for the construction that the city is responsible for.  

Under the Memorandum of Understanding, the school divisions are responsible for the majority of the construction in Phase 5, while the city is responsible for servicing the site of the joint-use school and individual lots.  

The proposal also extends Phase 5 into Phase 6a which would include roads and servicing lots.  

While Phase 5 was budgeted by the city for 2023, the city is moving forward $2.5 million in capital funding from 2024 to 2023 to fund Phase 6a which would include an additional 16 residential lots for a total of 52 lots between the two phases. The city is estimating the lots will generate about $5 million.  

The city is estimating that half of the $9.2 million allocated for the Agri-Food Industrial Park Development will be used in 2023 which would provide the cash flow for the $2.5 million needed this year for Westheath.  

Director of Finance Services Brian Acker said the lots in Westheath would need to sell to make up for the shortfall.  

“Of course, to be able to fund this in the longer term, we have to have lot sales. So, there are 52 lots there,” Acker said.   

“We have to have a significant amount of sales to be able to provide that cash flow in 2024 to actually be able to have the overall budget for this project as well as to be able to finish off the Agri-Food Industrial Park.”  

Director of Planning and Development Michelle Sanson explained that, with the city using the school divisions’ contractor, the city would be saving money.  

“The bigger costs are in being double charged on mobilization, traffic plans, general construction works, general charges for two separate projects, so that's estimated at about 10 per cent or more. And then the second major savings is really in internal resource time,” she said.  

Coun. Jamey Logan said he was in favour of the deal because the city would have to spend the $2.5 million regardless if it was this year or next year.  

“I don't mind the sole sourcing in this particular instance because it is being overseen through the school divisions,” Logan said.  

“There is a note in there about the land-lease removal of the building is future council's discretion. That is a change I also like. Or pay now or pay later, I'm OK with moving the funding up from '24 to '23.”  

The partnership passed city council 4-2 with councillors Kim Robinson and Dawn Luhning opposed. Mayor Clive Tolley was absent.  

Luhning said the report to city council rubbed her the wrong way and she wasn’t convinced the city would be saving money.  

“Cost savings, somebody's got to prove that to me over the next few years to confirm that we're going to save any money in building roads and everything else that we’ve got to build out on the outskirts of town for the school and selling the 52 lots and everything else,” she said.  

Meanwhile, Robinson voted against it because he remained against the location and felt infrastructure funding is better spent near the downtown core.