City to receive $8.35 million dollar loan for Saskatchewan Avenue Project.

The City of Portage la Prairie will have a new loan to help complete phase two of the Saskatchewan Avenue Rejuvenation Project.

The loan is from the Toronto Dominion Bank for $8.35 million, repayable over 15 years. Chair of the Finance, Legislative, and Property Committee Joe Masi says this will allow them to complete a big chunk of the work remaining this year.

“We are now able to continue the work,” explains Masi. “Including the new land drainage systems, paving the avenue with new asphalt, adding curbs and medians, installing climate-friendly infrastructure paths, sidewalks, bike lanes and appropriate parking spaces.”

The interest on this loan is generated at a rate of 4.81 per cent, generating a total interest of $3,562,396.57. Masi says the City will make annual payments of $794,159.77, comprising of paying off both the principal and interest, over the course of 15 years to pay off the loan.

“These are borrowing bylaws that we factor into and within the limits of our borrowing as a city,” notes Masi. “That's what the municipal board looks at. They look at our limit of borrowing, what we're doing with the money, and then they sign off that this is a good loan for us to be borrowing on.”

Masi is glad that council was able to get the approval for the loan at what he calls a very good interest rate. He mentions, due to the good planning of the previous and current council, as well as federal and provincial grants, the project is being completed with no tax increases this year.

Phase two of the Saskatchewan Avenue Rejuvenation project is currently expected to wrap up in 2024.