The Town of Hanover and the Municipality of West Grey will move forward with their boundary adjustment agreement.
The agreement will see Hanover acquire approximately 1,635 acres of land from West Grey, for a price of $10 million over 20 years.
This week, council for both towns directed staff to prepare and submit the restructuring agreement to the Ministry of Municipal Affairs and Housing. It is anticipated the the Ministry will review the agreement and respond in early 2026. If approved, a Minister’s Order would be issued. (Staff noted that there is no appeal process for a Minister’s Order.)
After that, amendments Hanover and Grey County's official plans and zoning bylaws would be required. Until those plans are updated West Grey’s zoning will continue to apply to the affected lands.
The transfer would affect around 55 properties, which would all pay a higher property tax rate in Hanover compared to West Grey.
During Hanover's meeting on Monday, CAO Sherri Walden outlined how taxes for all residents would be impacted as the town repays West Grey.
"There will be an annual tax levy increase for all Town of Hanover residents, including the boundary adjustment lands, of 0.5 per cent, for a period of five years commencing in the year of the finalization of the boundary adjustment," she said. "Following this period, the difference between taxation revenue from the boundary adjustment lands and the $500,000 annual repayment amount will be reflected in the Town levy and is anticipated to be below the initial 0.5 per cent increases."
The Town anticipates that in a decade, it will see increased revenue as a result of development on the boundary adjusted lands, making the levy no longer required.
The Town of Hanover said no specific development plans for the lands exist at this time.
