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HomeMy WebLinkAboutADMIN-23-87 TOWN OF NEWCASTLE i REPORT File # Res. # '40, ---_ By-Law # MEETING: HYDRO LIAISON COMMITTEE DATE: NOVEMBER 9 1987 REPORT #: ADMIN.23-87 FILE #: SUB.ECT: AGREEMENT BETWEEN ONTARIO HYDRO AND THE CORPORATION OF THE TOWN OF NEWCASTLE (SECTION 21) RECOMMENDATIONS: It is respectfully recommended to the Hydro Liaison Committee: 1. That report ADMIN. 23 - 87 be received; 2. That the terms of reference and work program pertaining to the general areas outlined in Report ADMIN 23 - 87 be prepared in accordance with Section 21 of the Agreement between Ontario Hydro and the Corporation of the Town of Newcastle dated March 1977 at a cost not to exceed $25,000.00; 3. That the funds referred to in recommendation #2 be drawn from the Community Impact Agreement Station "B" Account relating to Section 21; and 4. That the Chief Administrative Officer be authorized to take the necessary steps to engage the appropriate legal advisors and/or consultants to prepare the various requirements outlined in Report ADMIN 23 - 87. REPORT: Recently, Council directed the Administrator to review the various sections of the Agreement between Ontario Hydro and the Corporation of the Town of Newcastle dated March 1977 for presentation to the Hydro Liaison Committee (refer to Resolution #C-623-87) . In particular, in the first instance, Section 2.1 of the subject Agreement was to be examined in order to identify specific issues and areas of work which require attention and examination from the Town's perspective. ADMIN. 23 - 87 -- PAGE 2 Section 21 of the Agreement, in part, allows for expenditures in the amount of $50,000 for costs incurred by the Town for legal and consulting fees in reviewing and assessing the Darlington Generating Station Community Impact Study and Environmental Assessment prepared by Ontario Hydro in the late 1970's and the preparation of a work program for the formulation of a development strategy and growth management program referred to in paragraph 7(c) .* Discussions with Ontario Hydro staff and our investigation of the Community Impact Fund summary for the period ending August 26 1987 would indicate that a very minimal amount of monies have been expended to date ($5,442) for legal and consulting fees related to impact in accordance with Section 21. A considerable amount of discussion has taken place this year and previously regarding aspects related to the various impacts of the Darlington Generating Station on the Town of Newcastle. Previous reports have addressed certain aspects in part such as the studies mentioned above (1975-1977) , the growth analysis undertaken by the I.B.I. Group (1977-1978) , the economic analysis prepared by Clayton Research (1981) which is currently being updated, and the Darlington Generating Station Construction Workforce Decline Study prepared by Ontario Hydro (1987) . However, these investigations have not dealt with strategy development and growth management. Staff have reviewed the various investigations undertaken to date within the context of the existing Agreement and feel that it is most appropriate for the Hydro Liaison Committee to embark on specific aspects of a development strategy which are most relevant today. i i * Paragraph 7(c) of the Agreement addresses, in part, monies available to the Town to cover the cost of preparing and managing a development strategy based on various impacts related to the Generating Station such as population growth (Section 7c) and other items which may be identified from time to time (,Section 7d) . i ADMIN. 23 - 87 PAGE 3 � r 1 Accordingly, it is respectfully suggested that work be initiated immediately on the formulation of an appropriate work program and terms of reference for a development strategy and growth management program which addresses, in the initial stages, the following components: (i) a financial impact analysis related to when the generating station is fully operational; (ii) an analysis of the impact of the facility on economic and industrial development in the Town; (iii) an analysis of the impact of expansion possibilities within the lands owned by Ontario Hydro; and (iv) the identification of measures to counterbalance various impacts such as those identified in relation to the Darlington Generating Station Construction Workforce Decline Study. It is felt that these issues are of significant importance to the Town that require attention immediately. GENERAL AREAS TO BE CONSIDERED The general areas identified which require consideration are addressed briefly below. (i) Financial Impact Analysis It is intended that this area of study be developed in order to examine the financial impact when the Darlington Generating Station is fully operational in the early 1990's. Specifically, this matter has not been addressed in a comprehensive fashion to date and it is felt that considerable attention is warranted before this occurs and the existing agreement expires. This area of study would consider aspects such as the relative benefits that may accrue to the Town from Ontario Hydro's location and full operation within the municipality, and would consider aspects of assessment growth. I ADMIN. 23 - 87 PAGE 4 (ii) Impact on Economic and Industrial Development As Item (i) , this component of work is of critical importance to the Town. Specifically aspects that would be addressed include the identification of economic opportunities that would enhance the industrial base of the Town. Also, the positioning of the Town within the larger Regional context would be examined in order to define those elements in the general marketplace which could be captured and attracted to Newcastle based on the circumstances which exist. In other words, the extent of the market penetration has to be known such that the Town's efforts can be concentrated on capturing a particular market segment. This exercise, in general, would include a comprehensive marketing and economic analysis, a policy planning component related to guidelines required to address the marketing circumstances identified, and the formulation of a specific strategy required to attract certain segments of the market. In this regard, a comprehensive economic foundation would be defined upon which a related strategy would be based. Information to date suggests that without an appropriate mix of job opportunities (from both an industrial and commercial point of view) , the Town may have a large hurdle to overcome. This is based on the fact that the Province's decentralization process has not been totally effective. Specifically, the benefits of certain capital investments have not been maximized, probably due to the availability of jobs (or lack thereof in the Town) . Accordingly, the generation of specific job opportunities such as in the service sector may be required. If this Town continues to grow without growth in its economic base, such a situation could very well produce a financial and social crisis for the Town in the future. Furthermore, this area of study would examine in detail the ways and means to improve the Town's position relative to Provincial and more importantly Federal funding. In particular, this would require the development of an organized approach to obtain a realignment of boundaries or special status for the Town regarding the Federal Industrial and Regional Development Program. Although some previous attempts have been made in this area, a concerted effort must be made to articulate the Town's position to the Federal Government in order to avoid employment opportunities from by-passing the Town of Newcastle. i ADMIN. 23 - 87 PAGE 5 (iii) Impact of Hydro Expansion This component is designed to examine the micro--planning aspects related to the lands owned by Ontario Hydro, and in particular, the impacts related to the various possibilities for future land use in the area. Recently, expansion possibilities related to the Darlington Generating Station have been publicized which are very relevant to the Highway 401 corridor development prospects in the Town. Although this area of study ties in directly with the work identified in Item (ii) above, it would identify various real alternatives or scenarios that would have to be dealt with at some time in the future. For example, certain restrictions may dictate those areas within the Highway 401 corridor which may not be of use to the Town or private sector for employment opportunity purposes. The impact and implications of this must be fully understood. (iv) Counterbalancing various Impacts As indicated above, the Darlington Generating Station Construction Workforce Decline Study identified certain impacts which can be attributed to the declining construction workforce. In particular, impacts such as consumer expenditure leakages and housing supply increases must be addressed in order to develop strategies to counterbalance same. This area of study also relates directly to Item (ii) which will address aspects of dormitory status in the Town. If the Town continues to be a relatively exclusive dormitory area, certain problems will be associated with this. Similarly, certain measures must be examined such that alternative forms of employment are made available in the Town. This will require considerable support from the senior levels of government. Quite clearly, the basic components described above, although distinct in their own right are directly related. It is felt that the types of analyses suggested are not only timely but desperately needed from the Town's perspective. It is felt that an effective development strategy and growth management program can be formulated through this process, which would be most beneficial to the Town. I I I ADMIN. 23 - 87 . PAGE 6 The Next Step In order to initiate the work as suggested above, it is respectfully recommended that an allocation of funds be made available in accordance with Section 21 of the subject Agreement between Ontario Hydro and the Town to a maximum of $25,000. Specifically, each component of work would be examined in order to formulate a precise, useful and action-oriented work program. The approach being presented is felt to be extremely timely in light of the various circumstances in the Town, and the relatively short period of time within which the Generating Station will become fully operational and the subject Agreement will terminate. Accordingly, it is in the best interest of the Town to undertake the types of analyses proposed as soon as possible. Once the terms of reference and work program are developed for the areas of study identified above, it is proposed that a task force be established to undertake the various tasks or components of work. It is anticipated that participants from Town staff, Ontario Hydro staff, and any necessary expertise required in the form of consulting or legal assistance will share in the workload. As previously indicated, it is intended that any analysis and investigation will have a specific purpose and relate directly to the tasks identified. The purpose here is not to conduct studies for their own sake. All of the above is respectfully provided for the approval of the Hydro Liaison Committee. awrence Kotseff Chief Ad 'nistrative Officer I I