The developers of Netook Crossing asked Town of Olds officials last week to formally annex the area during the town's policies and priorities meeting last week.
In a presentation to councillors, Terrence Johnston and Nathan Petherick, representing Prodev and Brown & Associates Planning Group respectively, told councillors and administration that in light of recent changes to Mountain View County's Municipal Development Plan that drastically change the landscape under which the development could proceed, the developers wanted the town's support to save what has already been invested in the project.
Petherick estimated that about $30 million has already been sunk into the develoment and said that the county has failed to consider the impacts of its decision to rework its MDP on the Memorandum of Agreement with the Town of Olds.
The decision taken by the county to reformulate its MDP roll back the possibility of piped water and sewer services being run out to the development. As a result, Petherick said, the costs of the developers doing that is prohibitive. This will lead to less commercial development and larger lots, which he said aren't in the best interests of the town.
Johnston said the group started out with ambitious plans, but by changing the rules mid-stream the county appears not to be in favour of the plan any longer. Johnston said the group may be considering legal action against the county.
Johnston said the group wanted to find out if the town had any desire in expanding eastward, since, in his view, the county was no longer interested in development in that area.
“We're here to take the blinkers off and see if there is any interest. I really encourage the town to dig in their heels (on agreements with the county). They have really ignored the work we have done and railroaded (through changes),” he said.
Johnston said Prodev hopes to have 12 commercial lots sold by the end of the year. The new MDP says developers must pay for water and sewer services themselves if they want those services, Johnston said, which is estimated to cost $10 million at Netook Crossing. There is a 20-year time horizon on the project.
Petherick said he has received feedback from residents in the area who support the town annexing the area. He said under the old MDP, costs of growth centres such as Netook Crossing were supposed to be shared between the two participating municipalities and there were not to be unserviced lots.
Coun. Wade Bearchell said he liked the plan for the area. He said the feeling he got from public sessions about the development was that residents in the area were in favour of it.
Norm McInnis, the town's chief administrative officer, told councillors that the last annexation of land by the town was six quarter sections in 2007. There is ongoing residential development in the town and the current timelines for development are about 20 years. He did say, however, that the developer of this project has sunk significant money in it to date.
“These folks have made a significant enough investment that it will take place,” he said.
McInnis added that the town would be in a much stronger position if it entered into tri-partite talks with both the developer and the county.
“I really think we need to be part of this three-way agreement … but always consider what's in the best interests of the Town of Olds.”
