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Here is the article from the Telegraph Journal


City inches closer to waterfront deal

April CunninghamTelegraph-Journal
26 Jul 2013 09:43AM

SAINT JOHN – Officials are closing in on a more than $100-million waterfront development deal that would see retail, commercial, residential and hospitality space on the Saint John Harbour.

Saint John Waterfront Development will ask Common Council on Monday to approve a little more than $200,000 in legal, survey and environmental planning costs that would only be spent once a deal is signed.

“We’re working behind the scenes to align all this very quickly once signatures are had,” said Kent MacIntyre, general manager of the waterfront agency.

“We are getting very, very close to signing off on a deal.”

While MacIntyre would not say when he expects the yet-to-be-named developer to finalize the purchase of the former Coast Guard site uptown – an area now known as the Fundy Quay – he said officials are expecting to make an announcement in September.

“People will be quite excited and they’ll be pleased with the credibility of the developer,” he said. “We have a very significant player we’re working with, and this is a development company that’s all about quality.”

Talks have been underway with the developer for almost a year.

Council will be asked Monday to approve $85,000 to cover tender specifications to develop the sea wall, $65,000 in survey, legal and public relations fees and $70,000 in environmental remediation planning.

MacIntyre said there are petroleum hydrocarbons and other contaminants in the soil, discovered from a previous assessment, but he said the amount is not particularly concerning and typical for light-industrial sites.

The city will pay for remediation as the project unfolds, he said, because “it’s our responsibility to hand them a property that’s build-able.” Those costs are not expected to exceed $1 million.

As soon as the Canadian developer signs the deal, it could take up to a year before construction begins, he said. The company will need to go through several processes to work with city planners and finalize development plans.

The project, a high-density build, will be split into four phases and constructed over seven years, MacIntyre said.

Councillors say the report asking for pre-approval on environmental and legal fees points to the imminent nature of the deal.

“It’s very close or we wouldn’t be spending that kind of money to get it signed,” said Coun. Gerry Lowe, who added the name of the developer has not been told to council members, because of competitive reasons.

“It will be a big development and hopefully it’s a start to get people thinking positive,” he said. “People won’t wait for two years for things to come, they’ll spend the money once they realize good things will come and there will be employment.”

Coun. Ray Strowbridge won’t be present at Monday’s meeting because of a vacation but said he would vote in favour of approving the costs if he was there.

“We need to do everything we can to get the Fundy Quay project closed and moving forward,” he said.

He added that next to the Hilton and Market Square, it will be the biggest development in the history of the Saint John waterfront.

“It’s vital,” he said. “It’s going to increase the tax base, increase employment, increase tourism, and will help further develop our waterfront because right now it’s underdeveloped and it’s one of our biggest natural assets that’s not being used to its fullest potential.”

The city purchased the property for $2.8 million in February of 2011 but the Halifax-based Hardman Group, which owns Market Square, opted to walk away from an $85-million proposal.

“Saint John has been on the cusp of these big things in the past and never quite achieved it,” said Coun. Bill Farren. “Well this is one of those big things that has always eluded Saint Johners and it’s about to unfold in a very positive way.”