year and be complete by the Spring of 2023, at the latest. Given the current economic environment, there is a motivation to complete this project expeditiously, so that businesses can quickly locate on the property and potentially create employment opportunities.

Administration believes that this property, if serviced, will offer an attractive proposition to any employers considering locating or expanding in Southwestern Ontario. Not only is the property well suited geographically, there are several opportunities to provide ancillary products and services to existing local businesses. The local labour force is highly skilled and offers an additional benefit to potential employers to the area.

Interested parties have already expressed interest in locating on the property and discussions are at an advanced stage. Successful negotiations with these interested parties, as well as completion of the Project, could act as a catalyst to spurring further development.

Risk Analysis:

There is the potential that the project could cost more than the $4.0 million estimate to complete. Mitigating measures for this risk involve altering the scope or scale of the project. Alternatively, the scope and scale of the project could be maintained and additional City funds could be allocated to the project. Should additional funds be needed, a Council Report would be brought forward to Council at an appropriate time. This risk is possible to occur however it is of medium impact.

Additionally, the grant guidelines indicate that the transfer payment agreement will contain provisions that the funds may need to be repaid if performance measures, and other terms and conditions of the funding agreement, are not met. Specific performance measures have not been identified at this time and will likely be indicated within the transfer payment agreement, in the event that the City is successful with its' grant application. Should the City receive the grant funding and for any reason not be able to achieve performance measures or other terms and conditions of the grant, Administration will bring forward alternative funding options to address any such shortfall to Council.

Financial Matters:

Administration has determined the cost of this work to be approximately $4,000,000. It is estimated that $600,000 of this budget is sewer-related and therefore qualifies for Sewer Surcharge funding. If the City successfully applies for the Grant and receives the maximum funding of $1,500,000, net City costs will be reduced to approximately $2,500,000.

The $2,500,000 needed to complete this project is not identified within the 2020 8-Year Capital Plan. However, Administration recommends that the following funding strategy be undertaken to address the funding requirements to leverage this grant opportunity:

 Reallocate $600,000 of the approved 2020 Sewer Surcharge funding from the Grant Matching and Mitigating Inflationary Pressures project (FIN-001-19)