Ray Gibbon Drive - update

Christmas could come a day early for St. Albert.

Mayor Nolan Crouse said today the city and province could settle the tab for Ray Gibbon Drive by Dec. 24. However, it might be a while longer before the city has cash in hand.

If you recall from earlier posts, the city requested $45 million from the province as payback for ensuring Ray Gibbon Drive can one day be converted to an eight-lane freeway. That sum represents dollars the city otherwise would not have spent for a standard two-lane road — extra land for a wider right of way, interchanges, design costs, etc.

The mayor came away from a meeting last week with Transportation Minister Luke Ouellette convinced there are no remaining political hurdles.

"Politically, we're in agreement," Crouse told the Gazette today.

Provincial bureaucrats will crunch the numbers one last time. If there are no problems, both administrations have been instructed to sign off on the funding deal by Dec. 24.

Cash in hand

Once that happens, the only remaining question is when will the city have cash in hand. The city wants to use the $45 million to pay for the lion's share of stage three costs, estimated at $47 million. Administration proposes borrowing the remaining $1.9 million.

The city wants either the cash or a commitment by Jan. 31, 2009 so construction on stage three can start next spring. The city needs to complete two lanes to Villeneuve Road to hold up its end of the agreement.

Crouse said it's possible the city will have to wait until the province has a clearer picture of its year-end surplus. Any serious delay could push construction to 2010.

Read more in Wednesday's Gazette.

Why spend on stage three?

Lynda F. raised a good question in a comment she posted on the blog today. Namely, why would the city want to consider paying for stage three of Ray Gibbon Drive in the current economic climate?

Those answers will come out during the budget meetings, but I can offer my interpretation.

If the city doesn't build the first two lanes to Villeneuve Road, St. Albert in effect is not holding up its end of the deal that was agreed upon in principle by Premier Ed Stelmach and former mayor Paul Chalifoux.

The deal states that if St. Albert builds the first two lanes from 137th Avenue to Villeneuve Road, the province will reimburse the city for all dollars spent to ensure the road can one day be converted into a freeway.

The payback covers land that was (and some that still has to be) purchased for a wider right of way to accommodate up to eight traffic lanes, interchange land, extra design costs, etc. for all three stages. 

The city has crunched the numbers (which are still in the hands of Alberta Transportation)  and those extra costs add up to $45 million.

The province has also agreed to make Ray Gibbon Drive a highway bypass. That means they'll one day pay to extend the road beyond Villeneuve Road (some of that extension will be in the city's jurisdication) to Highway 2 just south of Morinville. The province will also pay to widen the road, as traffic counts warrant. 

No stage three = no payback = the province won't pay to extend the road north of Villeneuve Road to Highway 2 south of Morinville = no highway status = no future widening on the province's dime.

The city's plan is to use the$45 million payout from the province to pay for the bulk of the $47 million stage three. That means the city needs to find $1.9 million of its own funding for stage three.

Given the amount of money spent to date on non-arterial road costs and time put into negotiations with Alberta Transportation, I would be extremely surprised if council decided not to continue with stage three.