Skip to main content

$80-million agreement for Central Elgin over annexed land for Volkswagen plant


The Municipality of Central Elgin has settled compensation negotiations with the City of St. Thomas in relation to the municipal boundary adjustment that saw lands annexed to make way for the new Volkswagen plant.

The $80-million agreement announced Friday is said to include monetary compensation and infrastructure to grow industrial and residential tax bases.

“This deal not only addresses the present-day affordability concerns that this council has been elected to address, but it also ensures future opportunity that will continue to drive prosperity for generations to come,” said Municipality of Central Elgin Mayor Andrew Sloan. “It also sends the message that Central Elgin is a great place to invest amidst this time of unprecedented growth and opportunity for our region.”

The province will also be working with the Central Elgin on the future sale of the former St. Thomas Psychiatric Hospital property as part of the recently announced Site Preparation Pilot Program.

The site will be repurposed for residential development that will contribute to provincial housing targets, further expand the Municipality’s tax base, and provide local housing options as the Municipality grows in relation to the nearby PowerCo facility.


The agreement includes

  • Central Elgin will receive an immediate payment of $10 million, with an additional $5 million to be received on a five-year payment schedule to begin in 2027
  • Central Elgin will gain access to 6,000 cubic metres per day of wastewater treatment capacity that will support the development of industrial and residential land within Central Elgin
  • Central Elgin will also receive 1,700 cubic metres per day of wastewater treatment capacity to support the redevelopment of the former St. Thomas Psychiatric Hospital property for residential use, which will result in further growth of Central Elgin’s tax base
  • Benefits to Elgin County from further expansion of the Central Elgin tax base and provide valued support in attracting investment to the serviced lands Top Stories

Oilers rally to beat Stars, tie Western Conference Final

With the Edmonton Oilers down two goals late in the first period of Game 4, Rogers Place was quiet, fans seemingly bewildered at the early, quick scoring of the Dallas Stars and the slow start by the home team. Ryan McLeod's marker with six-and-a-half minutes in the opening frame left changed all that.

Stay Connected