Background:
The Southwestern Ontario Development Fund is a provincially administered program that offers 50% grant funding for eligible costs, up to a maximum of $1,500,000 to qualifying municipalities for infrastructure related projects that assist in securing private sector investments. There are several intakes for the program, however, it is a very competitive program and for the current intake, applications are due by April 20, 2020.
Administration has identified surplus lands on the Windsor International Airport property that are ideally situated for businesses to locate, due the close proximity to the Airport, as well as easy access to Highway 401 and, if approved and built, the new hospital on County Road 42 as an ideal project to be considered under this grant program. This property, is not however serviced, and requires the installation of roads, sewers and utilities to support its' development. The estimated cost to complete this work is $4,000,000.
The Province has indicated that several types of projects will be eligible for funding. This project in particular qualifies as "a municipality investing in infrastructure in order to secure a private sector investment."
The Province has indicated that assistance will be provided for projects that:
- Promote regional economic development
- Attract and retain investment
- Promote innovation
- Foster collaboration and cluster development
- Contribute to the diversification of the economies of Eastern and Southwestern Ontario
- Improve competitive position, enhance productivity and pursue growth
- Facilitate job creation and retention, skills training and talent attraction
- Stimulate private sector investment in business enterprises
Applications for funding require submission of an Eligibility Checklist to the Province, to determine the eligibility of a project prior to the submission of a Full Application. Based on the criteria indicated above, Administration determined that the Airport project as identified above is an ideal fit for the Grant. As approved via CAO 80/2020, an Eligibility Checklist was submitted to the Province in March 2020 to assess the potential success of a grant submission under this program. The Province has reviewed the Eligibility Checklist and subsequently indicated that the proposed project is eligible for funding and has encouraged the City to submit a Full Application for this project.
Discussion:
As indicated above, if the City's grant application is successful, the Province could provide as much as $1,500,000 in funding for the project, or 50% of eligible costs. Administration is confident that more than $3,000,000 of the project costs will be eligible for funding and the application will request the full $1,500,000 available.
The Province has also indicated that, in order to qualify for funding, the project needs to be built within two to four years. Administration anticipates that the work will start this