Clearview Township is amending its 2015 budget to add the purchase of industrial lands in Stayner.
Council approved the $260,000 purchase and an additional $140,000 for servicing and other improvements plus $41,000 in annual loan payments to be paid by a transfer from the land sale reserve.
It also authorized the treasurer to apply for a loan with TD Bank for an amount of up to $350,000 with a term of up to five years and a 10-year amortization.
The purchase will be financed with a $50,000 transfer from the roads capital grant reserve and a $350,000 loan.
Council approved the expenditures at a council meeting July 6 after an in-camera session without any public discussion.
The purchase of the lands permits the servicing of a road in the Industrial Servicing area, located in the southwest portion of Stayner, by way of providing a sufficiently sized road right of way, reported treasurer Edward Henley.
“The lands that are necessary to be purchased exceed the amount of land required for the right of way. The land not required for the right of way will be severed into approximately five lots. These lots will be serviced and then be available for sale at a suitable point in time,” writes Henley.
“It is the intention that the approximate five parcels of subdivided land would be sold at or above cost, including estimated financing charges within the 10-year amortization period of the loan. The proceeds of the sale of the five parcels would go to replenish the land sale reserve.”
Henley recommends borrowing from the bank instead of Infrastructure Ontario so the loans can be repaid more aggressively as the lands are sold, hopefully within five years. The money would also be used to replenish the reserve.