Moncton's free parking deal could cost $42M

A controversial parking deal signed with a Toronto developer is coming back to haunt Moncton and could cost the city as much as $42 million.

The contract, which was supposed to expire next month, was signed 10 years ago to provide free parking for the Rogers call centre. The call centre is located on some prime downtown real estate in the city.

In 2002, the city offered 385 free parking spots where the developer built the call centre. The contract has the potential to increase that number of free parking spots to 490.

Coun. Brian Hicks said the contract was supposed to be for 10 years, but he was furious when he saw the deal's fine print.

Hick said he does not remember being warned about clauses that allow the developer to extend the life of the contract.

"When you read it carefully, you could come up with a scenario, others have, that this is a 50-year parking deal and not a 10-year parking deal," he said.

Hicks has been trying ever since to find out how that happened to the contract.

Hicks said the contract goes on to say, if the developer puts a building on the parking lot, the city still has to come up with the free parking spots.

The implications of a 50-year free parking contract could be significant, according to the city councillor.

Hicks said 50 years of lost parking revenue on prime real estate adds up to $42 million.

He said since the contract he agreed to is up next month and at that point the councillor said the deal should be terminated.

"When it's 10 years, 10 years is up that's all council agreed to and personally I don't think we should be guaranteeing any parking after that," he said.

A city spokesperson said he is preparing a response to questions about the parking contract.