INNISFAIL – Town council has approved a long-term lease agreement of town lands to accommodate a CP Rail spur line into West Gate Industrial Park.
The new spur line in the southwest area of Innisfail is hoped to be a future economic driver in that area of town, which is earmarked for industrial expansion from the reclamation of sewage lagoon lands five years ago.
The spur line is expected to be operational in spring.
“We do have that industrial land we have reclaimed where the lagoons used to be,” said Mayor Jean Barclay. “Once we are able to develop that industrial park and having the rail spur come in maybe we can extend that if there are others businesses that need access. There is certainly potential there.”
During a presentation to council on March 7, Mike LoVecchio, CP’s director of Indigenous relations and government, said the project could soon bring additional economic opportunities to the town.
Meghan Jenkins, the town’s community services director, presented a report to council at its March 14 regular meeting with a request to approve a 20-year lease agreement of town-owned lands in the southwest area of town to a numbered company for the use and operation of a 420-metre CP Rail spur line.
It will run past the town’s public works yard and stop at Bilton Welding and Manufacturing Ltd.
Last December, town council approved the agreement with the numbered company to allow the construction of the spur line to access the Bilton plant.
The lease agreement, which begins Jan. 1 of this year and ends Dec. 31, 2042 with an option to extend, addresses the use, maintenance, compensation, insurance, liability and surrender of the lands.
Jenkins said the agreement calls for a yearly rent amount based on a property tax assessment that will likely increase over time. For 2022, the town is projecting an amount of $2,550.
She said the town did not contribute to the actual construction of the spur line.
“It is between CP and Bilton. The town is not involved in the actual construction of the spur,” said Jenkins, adding the project did not trigger the need for another pedestrian crossing to be constructed. However, the spur line project is expected to be completed soon.
“It ‘s my understanding that there are actually train tracks there now. It’s at that point at this time,” she said. “They just need to finish some of the ground work before it will be usable.”
She said no residential or commercial areas were impacted by the project as the line runs along the side of town-owned lands and then into Bilton property.
A request to Bilton Welding and Manufacturing Ltd. for comment on the project was not immediately returned.
