Province Revisits Funding Application For Fundy Quay

Saint John’s funding application for the Fundy Quay development is being revisited by the province, according to the city’s development agency.

Local developer David Elias plans to build a $250-million multi-use development featuring commercial and residential spaces on the former coast guard site.

The city had applied for $10 million over five years to help remediate the site, which includes upgrading the sea wall.

But earlier this week, council received a letter from the Regional Development Corporation which said the project was not chosen for funding.

Steve Carson, CEO of Develop Saint John, said he was shocked given the positive discussions they have had with the province in recent months.

“In particular, how impressed they were with the return on their investment,” said Carson in an interview Thursday.

“An investment of $2 million over each of the next five years would give them additional [tax] revenue of $117 million over the next 10 years, so it’s a really powerful and compelling business case.”

Following Monday’s council meeting, the city asked to meet with provincial officials to discuss the project further.

Carson said a number of discussions have taken place since and the province has decided to take a second look.

“We’re still very concerned but we’re cautiously optimistic that we may get to where we need to get to make sure this project is realized,” he said.

In an interview Thursday, Andrea Anderson-Mason, the minister responsible for the Regional Development Corporation (RDC), said the letter sent to the council wasn’t intended to permanently shut the door on funding for the project.

She said that water and wastewater projects were the priorities for this round of funding so the Fundy Quay project didn’t make the cut.

“It’s certainly a project that’s important to the city of Saint John and Saint John is a priority for me,” said Anderson-Mason, the MLA for Fundy-The Isles-Saint John West.

Anderson-Mason said the project could still receive provincial funding, and sooner rather than later, depending on the circumstances. It could be funded in the next round of applications, she said, or it could be considered if one of the current projects that has been approved for funding “doesn’t go forward as anticipated.”

“The government is constantly adjusting the [funding programs] to meet the needs and priorities that are cropping up,” she said.

Anderson-Mason said she plans to meet with the proponents of the project next week.

Repairing and building up the sea wall is necessary for work to start on the much-anticipated waterfront project.

The federal government has already committed funds to help with the work.

But Carson said a lack of provincial funding for the site remediation would put the future of the waterfront development into question.

In addition to the $8.5 million budgeted by the city, Carson said they also require $13 million from the federal government.

“About $3 million of that is already committed, the rest is conditional on the province’s $10 million,” he said.

“If we don’t have the provincial funding, which means we don’t mean the federal funding, it really is going to make it a challenging development. It’s part of the reason [the property] has sat vacant for over a decade and why it’s a parking lot today.”