The Alberta government is paying the Town of Fort Macleod in southern Alberta $10 million as compensation for cancelling the construction of a police training college in the community.

After six years in planning, the province abruptly cancelled the project last August.

Fort MacLeod Mayor Shawn Patience said the town had just signed construction contracts prior to the cancellation and had spent millions of dollars to purchase land and upgrade services to the construction site.

"We certainly would have preferred to have the training centre," said Patience, who threatened legal action against the provincial government after the cancellation.

"I can safely say that this does allow us to move forward with a clean slate and it does open some doors that we would not have opened before."

The college would have provided training services for police and peace officers, as well as provided an economic boost to the community of 3,000 people.