Essex County approves loan guarantee to boost rural internet access

Essex County moved a step closer to having fibre optic internet service across the region after county council unanimously approved a $2.3-million loan guarantee for Southwestern Integrated Fibre Technology Inc. (SWIFT) on Wednesday night.

SWIFT will use the guarantees as bridge funding to ensure there's adequate cash flow to launch Phase 3 of the project.

The corporation, which was created by western Ontario's 14 county wardens, is working to bring high-speed internet service to rural and underserviced regions.

“Our initial contribution was $1 million and that investment will bring $19 million in return from the federal and provincial governments and internet service providers,” Essex County Warden Gary Mcnamara said in supporting the motion.

“All we're doing is guarantying the dollars, only if and when payment is needed, before the opportunity comes from the federal and provincial governments to reimburse SWIFT.”

Altogether, SWIFT is looking for guarantees worth $27.5 million from the participating counties. The 14 counties are being asked to have the guarantees in place by the end of January.

The province approved Phase 3 last March and SWIFT has committed to over $150 million worth of projects.

In total, the internet project will cost $290 million.

Despite the loan guarantee, no money will actually be advanced by Essex County. The guarantees from local councils will be used to secure financing from the Toronto Dominion Bank.

SWIFT has no tangible assets and requires the backing from the respective county councils to secure the funding.

The financing for Phase 3 is expected to be in place during the 2021-2022 period.

“I don't think we have much of a choice,” Amherstburg Mayor Aldo Dicarlo said.

“If the municipality doesn't guarantee the loans, they won't begin construction in our region.”

The provincial and federal government's will repay any SWIFT loans once the projects are finished.

However, the $2.3-million guarantee must be noted in council's financial statements and reported to bankers and credit rating organizations. It will be viewed as a contingent liability.

The administrative report tabled for council concludes there is ample room to absorb the liability and it won't create any tax-supported debt.

Any costs not covered by the provincial or federal government are to be covered by the internet service providers further reducing the risk the county would be left on the hook for any additional expenses.

Council also unanimously voted to approve funding for four new positions.

Candidates will be sought for a communications and organizational development co-ordinator, procurement officer, an infection prevention and control co-ordinator for the Sun Parlor Home and a project manager for infrastructure services.

“I support this motion,” said Lakeshore deputy mayor Tracey Bailey. “These are key positions and are often found (overlooked) on the side of the desk.”

County council also voted to forward with the County Wide Active Transportation System's infrastructure plans for 2021.

Funds for additional trails, paved shoulders on roads, education programs and the creation of more community connections for non-motorized transportation alternatives have already been set aside.

This year's plan calls for an addition of 6.4 kilometres in various types of trails costing $1,693,000.

Two of the projects will be in Kingsville and Lakeshore while another is in Amherstburg.

The four shoulder-paving programs covering 12 kilometres in the county will cost $2.8 million.

The bulk of those funds ($1.46 million) will be spent on a 6.5-km stretch of County Road 20 from County Road 50 to Front Road South.

Through the end of 2020, the CWATS network included: 5.2 km of dedicated bike lanes, 7.9 km of separated cycle paths, 87.8 km of multi-use trails, 109.7 km of paved shoulders and 197.7 km of signed routes.