Province commits $21M for Moncton downtown centre

The province is providing a $21-million forgivable loan to the City of Monctonfor its proposedMonctondowntown centre project.

Health Minister Victor Boudreau, who is also responsible for the Regional Development Corp.,made the announcement Thursday morning flanked byMoncton Mayor George LeBlanc.

The project, to be situated on the site of theformerHighfieldSquare property,has an estimated total cost of$107 millionand has been the subject of heated debate in Moncton.

It would be thehome of the Irving-owned MonctonWildcats, the Quebec Major Junior Hockey League team.

"Our government's commitment to this strategic recreational infrastructureproject will yield a significant return on investment by spurring economic activity in greater Monctonand creating jobs," said Boudreau in a news release.

The loan will be on the condition the city provide a business plan, demonstrate that the project is sustainable without continued government assistance, provide success indicators and measurableeconomic benefit, and leverage funding from federal, local or private sources.

The loan will allow the city to convert $14 million of the forgivable loan to provincial grants providing the city secures matching funds from other public and private-sector partners, said the release.

The Regional Development Corp.says the project will generate 700 jobs and $9.8 million in provincial income tax during construction, and an expected$192,000 annually in income tax and 49 jobs once in operation.

The city has set a deadline of June 20 for the provincial and federal governments to make funding commitments toward the project.

The province and Ottawa have been in a war of words over the centre for weeks, with local Conservative MP Robert Goguen insisting the federal government was ready to fund the project if New Brunswick came through.

Boudreau called the discussions "a moving target" and said he hopes the provincial commitment will persuade other partners to ante up for the city.

"It needs to know which direction it can move in and what are its next steps, so we felt it's important for the province to give a clear indication that we are there," Boudreau said.

LeBlancsaid the proposal has been "a long winding road" over recent years. Hesays he's confident he can now negotiate a deal with the federal government throughGoguen for a matching amount of federal money.

He says the city has aplan to finance the project and that it will not affect the city's debt ratio.

Coun.Brian Hicks said he isnot convinced the federal money is new funding,but merely the amount Moncton would normally receive being repackaged under a new name.

"That's what we have to see and have to see from MP Robert Goguen whether he has new money, [or]if this is money that would normally come to Moncton under the build Canada Fund or the gas tax. Even the mayor a year ago was quoted as saying this has to be new money. If it's not, it's going to be a big drain for Moncton tax payers," said Hicks.