Moncton seeks more downtown development as it expands builder incentives

Monctonhopes to see more cranes downtown after expanding a program meant to give property developers a leg up in the area.

Council voted 8-1 to approvechanges to the city's downtown development financial incentive program after hearing demands to expand it.

The changemainly expands the geographic boundaries and adds eligibility criteria for development projects in the new zone.

Developers of so-called "city changing projects" valued at$10 million or more could receive a rebate over three years in thenew zone once the building is complete, according to a presentation to council.

For instance, a projectcould get$665,400 over three years,more than the $119,390 in taxesthe city would collect from the same property.

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KevinSilliker,Moncton'sdirector of economic development, says the city knows of five projects in the works that could be eligible for the newly expanded program.

"Our objective is to try to bring as many of those projects over the finish line as possible," Silliker said, without discussing specifics of those projects.

He said over the long-term, helping them reach completion will boostcitytax revenue.

Moncton hopes the changes lead to increased density,reduced surface parkingand development of vacant land.

Jim Dixon, president of the business group DowntownMonctonCentre-villeInc., sayshe expects the changes will accelerate the pace of development in the city.

"If you get the density, you get nicer restaurants and more restaurants and more attractions and so on," Dixon,an executive withMoncton-baseddeveloperAshfordInvestments, told reporters after the vote.

"It makes for an overall lifestyle for everyone, even if you live in the suburbs since there's more things to go downtown to do," he said.

Five properties have qualified under the original program launched in 2015. They include14-16 Church St.,803 Main St.,840 Main St.,171 Lutz St., and, once complete, 55 Queen St.

Mayor Dawn Arnold told reporters the city was consistently hearingfrom developers seeking to have the program's eligibility boundary expanded.

"We've received requests and demandfrom developers outside the zone,"Sillikertold council. "Developers are trying to influence the city to be as aggressiveas possible and want the city to be as aggressive as possible in regards to this incentive program."

In the newly added zones, the project's value must exceed $10 million. Once complete and valued for property tax purposes at more than $10 million,the grants are provided for three years. That can be extended tofive if the developer also must install new infrastructuresuch as parks, streets, or sidewalks as part of the project.

Coun. PaulPellerin voted against the changes. Hesaid when theAvenirCentre was approved by council, they were told its construction would spur new development and weren't told that would require an expandedincentive program.

The city expected to see about $108 million in new development in the downtown by 2023 due tothe opening of the downtown arena. So far,Sillikersaid the total stands around$50 million with several projectsin various stages of development that could help reach the target.

One large project now included within the incentive boundaries is aproposedhotelat the corner of Main and Harper streets.

Silliker said Mondaythe developer would be able to apply for the program.

The city should be ready to take applications for projects eligible for the expanded program startingin January, Silliker said.Successful applicants must still be approved by a council vote before the rebates are provided.