The Government of Ontario has announced a $20 million investment in the rehabilitation of County Road 49 in Prince Edward County, as part of the Housing-Enabling Core Servicing Fund. This funding will support the road’s much-needed repairs, which are critical for local housing development, economic growth, and community safety.

Mayor Steve Ferguson emphasized the importance of federal support, noting that this project is crucial for the future of the community. The road, which serves over 6,000 vehicles daily, is a key route for the area’s tourism, hospitality, and employment sectors. The rehabilitation will help unlock over 2,000 new housing units on the east side of Picton over the next 10 to 15 years.

The total project cost is estimated at $52.3 million, including a 25% contingency fund. While the province is contributing nearly $20 million, the municipality has already allocated $7.8 million from its 2024 budget. However, $24.5 million remains unfunded, with officials urging the federal government to step in to cover this gap.

Opened in 1966, County Road 49 has reached the end of its lifespan and is often ranked among the worst roads in Ontario. The road connects Picton with the Bay of Quinte Skyway Bridge, a major entry point to the region. Rehabilitation is seen as essential not just for infrastructure but for enabling future housing and community growth.

The Bank of Canada has reduced its overnight rate to 3.25%, down from 3.75%, continuing its balance sheet normalization policy. This move comes as global economic conditions evolve largely as expected. While the U.S. economy remains strong, Canada’s third-quarter growth fell short of projections, with weaker-than-expected performance in business investment, inventories, and exports. Consumer spending, however, has picked up, suggesting lower interest rates are starting to stimulate household demand.

Inflation in Canada has stabilized around 2%, and the Bank expects it to stay near this target over the next few years. Despite recent signs of a cooling labor market and moderate wage growth, risks remain, including potential new U.S. tariffs on Canadian exports. Domestically, policy measures like reductions in immigration and changes to GST rules may influence growth and inflation in the near term.

The housing market has also felt the effects of lower rates, with increased activity in both home purchases and housing construction, as more affordable borrowing costs support demand. However, rising home prices and higher mortgage rates could continue to pose challenges for prospective buyers.

Looking forward, the Bank is cautious but committed to maintaining price stability. While additional rate cuts are possible, each decision will depend on incoming data and the economic outlook. The next rate decision is scheduled for January 2025.

Council has approved the Nicholas Street affordable housing development, with 13 votes in favor and 1 against. The project, led by Homes First, will provide 106 rental units, half at affordable rates, funded by the Canada Mortgage and Housing Corporation. The site, located above Delhi Park, includes a five-story apartment building, townhouses, and supportive housing for those with special needs. 

While the development promises affordable housing, a pathway to Delhi Park, and green space preservation, it has sparked significant opposition from local residents. Concerns include loss of tree canopy, increased traffic, and the impact on the neighborhood’s small-town feel. Residents also raised issues with the lack of sidewalks and potential construction hazards. However, planners emphasized that the project aligns with the municipality’s goals for affordable housing and will enhance park accessibility. 

Councillors, including Roberts and MacNaughton, highlighted the pressing need for affordable housing in the area, noting the County’s declining working-age population and low rental vacancy rate. Despite opposition, the development is seen as crucial for addressing the housing crisis and promoting active transportation links. The project is expected to improve the community in the long term, though construction impacts remain a concern for many.