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New sewage plant construction nears tender call in Tottenham

Posted March 26, 2014

Construction of the $22.5 million new wastewater treatment plant (WWTP) in Tottenham will begin in July, with tenders issued to prequalified general contractors starting April 3rd.

The WWTP will be built on the same site - Industrial Road area, just north of Mill Street, with substantial completion expected in 2016. And once fully commissioned, the current facility, which has been on the Ministry of Environment's watch list since 2000 for phospherous loading issues, will be demolished.

When in operation, the new plant will have capacity to accommodate a population over 11,000 by 2031, which is at build out of the Tottenham Secondary Plan. The bulk of that growth will be generated by three subdivisions: Six Nights Developments, located north of Mill Street and east of the CPR railway line, consisting of approximately 45 ha; Nordstar Developments located south of Mill Street and east of the CPR railway line, consisting of approximately 30 ha; and LRG Tottenham Developments, located north of Third Line and West of the CPR railway, consisting of approximately 38 ha.

It's estimated to cost $8.5 million to cover works planned this year, with the remaining costs expended over 2015 and 2016.

"Finance staff will arrange a construction loan to temporarily finance the project during the construction period. Construction loan rates are currently very low and provide an excellent form of low cost temporary financing. Available development charge reserves will be used to reduce the amount of the construction loan," according to the financial considerations included in the report to council Monday night. "At the completion of the project, a combination of long-term debt financing and available wastewater development charge reserve funds will be arranged and used to permanently finance the project. The long-term debenture is expected to be issued for a 20 to 30 year period, but will be more thoroughly reviewed during 2016 when the construction process is ending. The Town currently has the borrowing capacity to finance the project. All principal and interest payments relating to the construction loan or long-term debt are fully funded from development charges with no taxation impact."

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