West Grey is going to consider authorizing submitting an application to Ontario Infrastructure and Lands Corporation for financing the new police station in Durham.
This comes after council awarded the $8.8 million contract last April to Domm Construction for the new police station and construction began in the summer.
The new police station is designed to accommodate the current police service as well as projected growth. The new build will also include energy efficiency upgrades to the HVAC systems and other green enhancements.
The municipality is in need of a borrowing bylaw as part of the loan application to Ontario Infrastructure and Lands Corporation. The municipality is applying for both temporary constructing financing and eventual long-term borrowing.
For construction financing, the municipality needs to make interest payments, which will change monthly during construction.
When the project is finished, West Grey will need to issue a debenture to pay off the loan, which will then be set on fixed interest rate.
The 2025 budget includes $526,000 for construction financing and long-term borrowing for the police station project, which represents the estimated annual borrowing costs over a 25-year period.
Council will consider authorizing the submission of an application to Ontario Infrastructure Lands Corporation for financing during its meeting on April 1 at 9 a.m.
