Town council has given the green light to a forward-thinking tech innovation centre/transit hub based upon a business model that will have no impact on property tax.

The town is leveraging $4.6 million in GreenTRIP funding to take the project from a single purpose transit hub to include a significant innovative centre in hopes of expanding Cochrane's growing tech industry.

It's estimated the Railway St. centre will cost $10.5 million to construct. In addition to GreenTRIP funding, the town will utilize $1.5 million in Municipal Sustainability Initiative funding and borrow $4.4 million. The debt will be serviced by the building's net income.

The result will be a 39,275 sq. ft. building that will include 21,865 sq. ft. of commercial space. Funds generated from the building will support the incubator space for early-stage start-up companies on its third floor.

Net operating income is currently estimated at $125,902. The financial figures will be refined as plans are finalized.

Mayor Jeff Genung says the involvement of Cochrane tech leaders 4iiii and mcThings will play a big role in the project.

"We've got letters of intent from 4iiii and mcThings. That was key in providing the revenue to offset the cost of operating the building," says Genung.

Mayor Jeff Genung is delighted with the positive message council is sending to the tech sector. He says its an example of Cochrane's ingenuity.

"I think the community is going to have an iconic building right in its core, bridging historic downtown to the modern side of downtown, if you will. I'm just excited about the potential this project will bring to the community."

"Having a zero impact on our taxes in our town while still being able to construct this building is a huge win."

Town CAO Dave Devana laid out the business plan to council last night.

It is anticipated to have an annual revenue of $760,507 to offset operating costs of $634,605, leaving the town will a net income of $125,902. The projected budget includes $150,000 to hire an experienced executive director, debt servicing plus operating costs.

The centre is scheduled to be built at the same time as the $2 million CP Rail pedestrian crossing included in the Town’s 2020-2022 budget. That project is being funded by the Community Revitalization Levy that is generated from property taxes in the Quarry.

The town anticipates releasing the RFP to construct the building in the first quarter of 2020. Occupancy is scheduled for December 2020.

The third-floor incubator is expected to be operating by the second quarter of 2021.