REGINA — The City of Regina is proposing to invest in two wastewater lift stations to help with housing development.
Lift stations handle wastewater where flow by gravity, physically or economically, is insurmountable
These stations are key for the development of a new neighbourhood.
Per a report, Regina has proposed investing $66.8 million in a new Northwest Regional Wastewater Lift Station (NRWLS).
New neighbourhoods serviced by the NRWLS would include roughly 10,200 new dwelling units and a projected population of 23,700, said the city.
The city has also proposed investing $8.6 million into the Westerra Wastewater Lift Station (WWLS) built in 2017.
”The WWLS is estimated to support the development of new neighbourhoods with an estimated 8,000 new dwelling units and a projected population of 17,200,” said the report.
These potential investments will push forward new neighbourhoods, including Coopertown and Skywood, while further investing in established areas like Westhill and Maple Ridge.
There is also planned growth for Carry the Kettle Nation and Keeseekoose First Nation.
This potential change comes after the city moved away from including lift stations in the development charge financial cash flow model (DC Model) and development charge rates due to a deficit in the DC account.
Since then, the WWLS has been the only wastewater lift station created after the city changed their policy.
Developers have emphasized these changes have hindered the development of new areas because of large capital investments.
“We are approaching a critical shortage of service lots,” said Jason Carlston, vice-president of Dream Development.
Without a new lift station, Carlston said Regina would be left with only one developing neighbourhood.
“[This] would limit market choices for homebuyers and strain the city’s ability to accommodate growth.”
The City of Regina has of 370,000 by 2051. Over the next 25 years, it’s estimated that over 55,000 more housing units will need to be built.
Per final approval, Carlston said Dream would service 220 lots in 2026, with a full build-out of Coopertown by 2027.
Blair Forester of Forster Harvard Developments said 320 new lots in Westerra have been proposed and will be considered by council next week for final approval.
Regina’s executive committee passed the motion 7-0 for next week’s council meeting.
Long-term payment
To fund both lift stations, Regina would submit a grant application for the fall intake of the Canada Housing Infrastructure Fund (CHIF).
If approved, the city could receive $48.9 million in funding from the federal and provincial governments.
As for the other costs, the city plans to transfer nearly $11 million from the general utility reserve, use development charges and long-term debt paid off by a one-time dedicated mill rate increase.
This mill rate could be anywhere between 0.17 to 0.89 per cent, depending on if the city receives funding.
The city also plans to create a new position - manager, city projects - to oversee the NRWLS.
Funding for the position would be provided “through the NRWLS capital project account at an estimated annual cost of $160,900 over a four-year term,” per the report.
Regina will get most of the costs back via development charges with interest.
“It's a really positive and creative mechanism that we have now to ensure that we are enabling development to happen,” said Mayor Chad Bachynski.