Center Wellington signs loan agreement with Infrastructure Ontario for operations center
At Monday’s meeting, a 5-2 vote approved to allow the mayor and clerk to sign the loan in the principal amount of $ 3.76 million
The Wellington Center council has given the green light for a loan of $ 3.76 million to purchase the 20-acre parcel of land at 965 Gartshore Street in Fergus for the township’s new operations center.
At Monday’s meeting, a 5-2 vote approved to allow the mayor and clerk to sign the Infrastructure Ontario loan – just in time for Tuesday’s budget meeting.
Dan Wilson, General Manager of Corporate Services and Treasurer, presented the bylaw to the board at the meeting, explaining the terms of the debt:
- December 15 closing date
- Principal amount: $ 3,761,129
- 20 year term
- 2.95% annual interest rate
- Semi-annual pre-authorized debit payments
- First installment due June 15, 2022 with future installments every six months
- Payments equal to $ 125,150.65
- Total payments over 20 years: $ 5,006,025.66
Com. Stephen Kitras noted that he receives questions from his constituents regarding the purchase of land; they are trying to figure out why the township is paying a large amount of money for 20 acres of land.
“The farm he owns and is cut for is 100 acres and if you extrapolate the cost it will be over $ 20 million for 100 acres and there is no property here that has been for that price.” . They try to ask me why we pay this price; what was the rationale for this decision. I still can’t explain to them why we spent so much money on it, âKitras said.
Mayor Kelly Linton explained that the council’s decision on whether or not council should have purchased the land for the price of $ 5 million has already been made.
âWe are talking here about a very specific requirement to sign an agreement. I don’t want to rehash the council’s decision. We have to go through the process that Infrastructure Ontario is forcing us to do, âsaid Linton.
The loan agreement is for only the funds needed to purchase the 20 acre land; Wilson noted that for any other borrowing needed to develop the operations center, the township will need additional borrowing by-laws.
Kitras and Foster were the only opposites.