Niagara Region councillors have voted in favour of trading three years of residential development charge revenue for more than $750 million in federal and provincial grants.
In utilizing the Development Charge Reduction Program (DCRP), the grants will unlock funding that will finance two critical wastewater and water infrastructure projects in the region that would otherwise not be affordable to ratepayers.
The DCRP is a cornerstone of the Canada-Ontario Partnership to Build that was launched earlier this year. It is an application-based program to provide partial relief from development charges for three years while accelerating housing-enabling infrastructure over 10 years.
The bigger of the two projects is the South Niagara Wastewater Treatment Plant (SNWWTP) in Niagara Falls. It’s original budget upon proposal, less than 10-years ago, was $361, but latest estimates show a cost of $688 million.
“The new plant will help manage wastewater for not just Niagara Falls but also Thorold, St. Catharines, Queenston and Niagara-on-the-Lake. It will take some of the load off the existing systems in Niagara Falls and Thorold and handle both current and future needs,” states the Niagara Region website.
The 108.5-acre facility will be the largest and most expensive infrastructure project in the region’s history and will have to ability to handle 30 million litres of wastewater per day.
Also in the equation is the $375 million West Lincoln water and wastewater infrastructure bundle, which consists of:
- The Smithville trunk sewer: Expansion and upsizing of core sanitary sewer systems.
- Transmission watermains: New main water pipes to tie growing local sectors into regional networks.
- Pumping stations: New and upgraded water and wastewater pumping infrastructure.
- Regional Road 20 and Wade Road works: Localized watermain replacements running in tandem with ongoing municipal construction.
The DCRP operates on a “growth-for-infrastructure” trade-off. If the region’s application is successful, the program would provide $509.3 million for the south Niagara wastewater treatment plant and $241.8 million for the five bundled West Lincoln water and wastewater projects.
In exchange, the region will forego 50 per cent of revenue from residential development charges for three years, retroactive to March 30, 2026 — a reduction the municipality estimates will cost $218.5 million in lost revenue. A report to council said staff expects the loss to be more than offset by the DCRP.
The agreement will also require the region to cover 10 per cent of construction costs through water and wastewater rates rather than development charges.
The SNWWTP is part of the region’s South Niagara Wastewater Treatment Solutions program and this project, as well as the South Niagara Trunk Sewer, were awarded to Stantec in 2025.
“This is an important and transformative effort that will develop the infrastructure for the Niagara region to grow,” said Mike Kocher, Stantec’s design manager on the SNWWTP in a news release. “Our local multidiscipline staff, along with our team of international experts, are excited to work alongside Niagara Region to deliver this project that will help provide sustainable and reliable service for the area.”
The wastewater project, on Reixinger Road in Niagara Falls, in the south end of the city near the QEW and Chippawa Creek, would enable 30,973 new housing units and service 750 hectares of employment land and 3,000 hotel rooms and suites as well as the new south Niagara Falls hospital.
The new plant would also relieve pressure on the current Niagara Falls wastewater treatment facility on Stanley Avenue, which was built in 1964 and expanded in 1986. The plant faces daily challenges with aging infrastructure, deteriorating equipment, environmental compliance requirements and growing wastewater demand from rapidly expanding south Niagara.
West Lincoln’s population is expected to more than double by 2051, and the new water and wastewater infrastructure bundle are intended to support that growth.
“Once complete, these projects will play a crucial role in managing wastewater as the City of Niagara Falls and surrounding municipalities continue to grow. The region has forecasted increased wastewater flows due to residential and employment growth, including the City of Niagara Falls’ tourism industry,” stated the Stantec statement.
