At its meeting on Nov. 28, Rocky View County (RVC) council heard a presentation on a proposed funding agreement that would allow for the development of a highway interchange outside of the City of Calgary.
Jeanette Lee, from the County’s Capital and Engineering Services department, presented the proposed agreement between the Alberta government’s Transportation and Economic Corridors ministry and Genesis Land Development, who will be responsible for the construction of the interchange at Stoney Trail and Airport Trail along the northeast section of the Calgary ring road.
As per the agreement, the province has committed a maximum amount of $23,785,000, while Genesis will provide the remaining $7,000,000, bringing the total cost of the project to north of $30,000,000.
In the proposed funding agreement is a stipulation that Genesis will also pay $3,000,000 as a “contingency”. Bringing the total budget for the project to $33,785,000.
According to the report summary presented to council, the interchange project will “support continued regional growth for existing and future development” in the area. While not on the hook for any of the project costs, RVC has had to act as an intermediary between the province and Genesis. The reason for this being, “to ensure effective fund management and project oversight.”
Essentially, the County will not be putting its own money into the project, but will act as a conduit for provincial funds.
With the province agreeing to front a vast majority of the project, the County, according to the report summarized by Lee, is only at risk if the max budget is exceeded.
“Was a legal review done to understand the County’s exposure?” asked RVC Division 2 Coun. and Deputy Reeve Don Kochan. Lee said that a review had been completed by the County administration.
When asked by RVC Division 6 Coun. Sunny Samra why the City of Calgary was not providing any funding for the interchange construction, Lee said it was because the City decided against the allocation of funds for the project in their capital budget.
“The province has been [very] gracious in footing the bill,” said Samra in response. “I support this fully.”
Council then voted unanimously to approve the memorandum of agreement, and approved a budget adjustment to accommodate the County’s intermediary role in the project.
According to Lee, Genesis is looking to construct the Stoney and Airport Trail interchange in a year and a half’s time.
