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City tells Niagara Bottling it must cover legacy costs or face limits on expansion

2978833 · April 12, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

City staff explained the history of water allocations to a large bottling customer and said a recent letter asked Niagara Bottling to pay roughly $28 million to "make the city whole" for earlier under‑recovered connection costs, with total prospective expansion fees of $45M–$56M depending on the scenario.

Aurora staff outlined the city’s long history with a major water customer and told council on April 12 that the city has asked Niagara Bottling to make the city whole for prior under‑recovered costs before the company’s proposed expansion can be approved.

The overview traced a 2012 will‑serve letter to Niagara, subsequent attempts to revise fee structures and a 2025 staff letter offering paths to an exception for further expansion if Niagara pays legacy cost recovery and new connection fees.

Key facts and timeline presented - Initial approval and fees: Niagara received a will‑serve letter in 2012. At that time the company paid combined water and wastewater connection fees of about $2.6 million (presented by staff). - Revised fee structure: In 2013 Aurora adopted volumetric connection fees that reflected the city’s source-of-supply costs; much of the per‑gallon connection value reflected the cost to acquire raw water supply. - Current usage and valuation: Staff said Niagara’s current usage is roughly 514,000 gallons per day (about 576 acre‑feet per year) and that the 2013 estimated value of that water was about $30 million; staff said the same volume is worth roughly $62 million under more recent valuations. - Expansion requests and the city’s response: Niagara sought formalized allocations and the option to add a third bottling line. Staff said the company has asked…

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