Windsor greenlights $280 million Sandwich South financing plan

Windsor city council has approved the plan for Sandwich South Development Lands. CTV Windsor’s Robert Lothian explains what this means.

Windsor City Council is moving forward on a 10-year financing plan to develop lands known as Sandwich South.

Intended to facilitate further growth around key projects, the Sandwich South Development Capital Works plan, approved on Monday afternoon, carries an overall price tag of approximately $280 million.

Drew Dilkens, Windsor’s mayor, said the five-phase plan is necessary to remain attractive to businesses and continue growth.

“So, as we run out of development land at the airport property, this land will open up and allow future mayors, city councils, and city administrations to continue to market and sell the region for good employment,” Dilkens said after Monday’s council meeting.

Phase one, the most expensive, will prepare Airport Employment Lands north of Cabana Road with paving, sewers, and other necessary infrastructure.

Work will also enable the extension of Lauzon Parkway to accommodate the future 401 interchange.

Future phases include the construction of infrastructure to support the Fancsy Family Hospital.

Casting the lone vote against, Coun. Fred Francis raised concerns about a funding strategy which heavily relies on development charges.

“Usually, development charges occur when on the onset, and we use them when we build up the reserves; we’re not doing that here,” Francis questioned.

“So that’s what I’m having a hard time reconciling: How do we pay for something if the money’s not there?”

About 85 per cent of the project’s cost is expected to be recovered through the use of development charges.

The remainder of the project will be covered through other resources.

Instead, Francis wanted to see the plans deferred to the next term of council, and a different model, less reliant on debt, considered.

“A lot of this is based on potential fluctuation in the market, potential fluctuations in [Development Charges]. There is some risk, and for me, I think the risk is a little bit too high,” Francis said.

However, Dilkens was adamant that the cost of developing the Sandwich South lands would not fall on the backs of taxpayers.

As the phases progress, Dilkens said they can begin opening up the lands and generating revenue, rather than having to wait for the entire 10-year project to finish.

“So, we’re taking on the debt over a period of 10 years to do the work required. The development charges collected by construction in that area will help pay the debt,” Dilkens explained.

“We’re not using your property tax dollars to pay for this construction.”

As part of the plan, Windsor is hoping to see increased investment in housing stock, and more space for businesses to setup shop.

If council opted to balk at the development of the lands, a city staffer estimated about $1.6 billion, and 1,500 to 2,000 jobs would be at stake.

With more growth inbound through the expected opening of the Gordie Howe Bridge, Dilkens said it was important to open up Windsor to more opportunities.

“What’s been put forward is extremely responsible. It talks about unlocking Windsor’s long-term potential, and if council hadn’t made this move, I really would be fearful for the mayor and the council that’s sitting in this chamber 10 years from now,” he added.