Lantzville company offers water funding

Lantzville company offers to help fund connection to external water source for district.

Lantzville could secure funding for a connection to an external water source without existing users paying a penny.

The district is considering a memorandum of understanding with Lantzville Projects Ltd.

The company is willing to pay a portion of the up-front costs of securing an affordable water supply in return for the consideration of a reduction in costs for future developments or consideration of a latecomer agreement to reflect the company’s initial contribution.

The memorandum also states the acquisition of a new source of water should be funded predominantly by new connections.

Council agreed to create the memorandum of understanding on Tuesday and it will appear before council for a vote Monday (Nov. 14).

Mayor Colin Haime said the agreement is “basically a win-win solution” because both parties need a new source of water for the future.

Lantzville Projects Ltd. owns four large parcels of land and to develop to the allowable amounts in the Official Community Plan, water is needed.

Haime said he’s had discussions with the company for a number of years about the possibility of entering into an understanding.

“Both myself and Darwin Mahlum [project manager of Lantzville Projects Ltd.] determined it was time to put the discussion on paper in this memorandum of understanding,” said Haime.

The company would try to secure funding for the initial costs to connect to a water source, anywhere from $4 to $7 million depending on what route the district decides to take.

Haime said there are three possible sources the district could tap into: the City of Nanaimo’s system, an opportunity through the Arrowsmith Water Service or other groundwater sources outside Lantzville’s borders.

While there is a possibility of reduced costs for the company, no proposals have been put forward and council will not pre-judge whether they will be accepted, Haime said.

For more information on the memorandum, please go to www.lantzville.ca and download the Nov. 14 council agenda.

reporter3@nanaimobulletin.com

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