CLARENVILLE, N.L. — The Town of Clarenville unanimously agreed Oct. 22 to borrow $1.25 million to fund its portion of the Shoal Harbour Causeway bridge replacement.
However, the approval to borrow is a tentative decision to help expedite the process for the work.
The potential bank loan was noted to be over a 12-year term.
Traffic has been limited to one lane since an inspection revealed the bridge needed replacement.
While the municipality’s sentiment has largely centred on how the bridge should be the responsibility of the province — maintaining it was never formally transferred to the town in the early 1990s — council is continuing the process to see it replaced.
The capital expenditure cost share is determined through the Investing in Canada Infrastructure project application which was submitted last month. If approved, the town’s $1.25 million would make up one-third of the cost of the bridge, along with equal contributions from the federal and provincial governments.
When council applied for this funding, however, it hoped to reach a more palatable cost-share ratio in the future.
The approval to borrow is also contingent on success of the application for the funding project.
At the same meeting, the town also passed an approval to borrow $350,000 over a 12-year bank term with the purpose of funding Random Crescent road upgrades.
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