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Municipality of Central Elgin Secures Historic Settlement for Boundary Adjustment Compensation

 

~$80 million package includes monetary compensation and infrastructure to grow industrial and residential tax base

 

April 19, 2024

 

MUNICIPALITY OF CENTRAL ELGIN – Andrew Sloan, Mayor, Municipality of Central Elgin, is pleased to share that the Municipality has settled its compensation negotiations with the City of St. Thomas in relation to the municipal boundary adjustment brought about by Bill 63, St. Thomas - Central Elgin Boundary Adjustment Act, 2023.

 

This historic settlement will help to secure the future for the Municipality by providing an up-front payment of $15 million. With these funds, Council can consider addressing immediate affordability concerns as prioritized in its 2024-2027 Strategic Plan.

 

Additionally, the settlement includes access to 7,700 cubic metres per day of wastewater treatment capacity at flow rates equal to City of St. Thomas rates, which will facilitate both the expansion of residential development and the development of industrial lands retained by the Municipality of Central Elgin. Securing this capacity represents a significant economic development opportunity whereby Central Elgin industrial lands remain competitive and attractive.

 

Finally, the Province of Ontario will be working with the Municipality on the future sale of the former St. Thomas Psychiatric Hospital property in Central Elgin as part of the recently announced Site Preparation Pilot Program. The site will be repurposed for residential development that will contribute to provincial housing targets, further expand the Municipality’s tax base, and provide local housing options as the Municipality grows in relation to the nearby PowerCo facility.

 

“This deal not only addresses the present-day affordability concerns that this Council has been elected to address, but it also ensures future opportunity that will continue to drive prosperity for generations to come,” said Municipality of Central Elgin Mayor Andrew Sloan. “It also sends the message that Central Elgin is a great place to invest amidst this time of unprecedented growth and opportunity for our region.”

 

The total value of compensation for the Municipality of Central Elgin, including immediate and future value, is between $75-85 million.

 

“I congratulate Mayor Sloan, Mayor Preston, and both municipalities on their success in negotiating this agreement that benefits all residents of Elgin County. The investment in the new Volkswagen/PowerCo EV battery plant is bringing economic prosperity, including good-paying jobs, to Elgin-Middlesex-London. Our government is encouraged by this agreement, and we will continue to support the economic growth we are experiencing throughout our region.”

-       Rob Flack, MPP Elgin-Middlesex-London

 

“On behalf of City of St. Thomas and the members of our City Council, I am both pleased and excited about the finalization of this important agreement with the Municipality of Central Elgin. Together, as municipal partners, we have ensured the continued and important growth and stability of our communities and the broader region. The opportunities moving forward are extraordinary and through cooperation, we will continue to ensure a brighter future for all.”

-       Mayor Joe Preston, City of St. Thomas

 

Quick Facts

 

  • The Municipality of Central Elgin will receive an immediate payment of $10 million, with an additional $5 million to be received on a 5-year payment schedule to begin in 2027
  • The total value of the Municipality’s compensation is approximately $80 million
  • The Municipality will gain access to 6,000 cubic metres per day of wastewater treatment capacity that will support the development of industrial and residential land within Central Elgin
  • The Municipality will also receive 1,700 cubic metres per day of wastewater treatment capacity to support the redevelopment of the former St. Thomas Psychiatric Hospital property for residential use, which will result in further growth of Central Elgin’s tax base
  • Elgin County will benefit from further expansion of the Central Elgin tax base and provide valued support in attracting investment to the serviced lands

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Media Contact

Delany Leitch | Deputy Clerk | deleitch@centralelgin.org