Waterfront development delays questioned by Saint John council

Some members of Saint John city council have raised concerns about the lack of progress onwaterfront development after years of assurances that a large scale project at the former Coast Guard site is imminent.

They grilled Saint John Development Corporation's general manager Kent MacIntyreduring his presentation to council about the Fundy Quay projectearlier this week.

Councillor at large Gary Sullivan said he heard a similar presentation and "a lot of optimistic talk" when he previously served on council between 2008 and 2012.

"It's political, but the question is, 'What have you done for us lately?'" he asked.

MacIntyremaintains the organization is close to announcing a $230-million overhaul of the site, as soon as an anchor tenant commits to leasing at least50,000 square feet.

The vision, which includes600,000square feet of mixed hospitality, retail, residential and commercial space,wasfirst floated in 2003.

$275Kof citybudget

Last year, the corporationreceived $275,600 from the City of Saint John, along with$25,000 from New Brunswick's Regional Development Corporation and $200,000 from the Canadian government's Atlantic Canada Opportunities Agency.

Sullivan questioned whether the money is being put to the best use, notingthere's existing infrastructure that falls under the purview of the corporation thatneeds work, including the "soon-to-be unusable dock at the Hilton, which requires dredging."

"We've got to maintain the things that we have," he said.

Ward 4Coun. DavidMerrithew also suggestedtaxpayers are not getting a properreturn on the investment. He asked MacIntyre whetherthe corporation's work has resulted in any tax base growth in the past four years.

MacIntryesaid the group has worked predominantly on public spacing projects, such as ecological hubs and Harbour Passage. "However theFundyQuay file, which is a major tax base return, has consumed a lot of time over those last four years."

'Pie in the sky'

Merrithew echoed Sullivan's comments, sayingMacIntyretold council four years ago thata deal with a developer was "just around the corner."

"I don't want to be coarse with my language, but this property's been 'pie in the sky' for four years nowand we haven't seen it."

MacIntyresaid all indications from the unnamed Canadian out-of-provincedeveloper at that time were "he was going to do something rather soon." But engineers found some "challenges" withthe site.

"That's when [the developer] backed off and said, 'I want to do big time due diligence before I make that commitment.'" Further engineering, geotechnical and environmental studies were completed about nine or 10 months agoand "now the thrust has been securing an anchor tenant," said MacIntyre.

Suffice to say we're not prepared at this point in time to step away from this developer because there's very good progress at this time.- Kent MacIntyre, Saint John Development Corporation

Merrithew wasn't satisfied. "Here we sit four years later and the property hasn't movedand we haven't marketed it again;it's kind of like you've given the guy a free option on this lease," he said. "If he doesn't want to do it, why don't we market it to somebody else?"

MacIntyre said he understands "there is a level of frustration," but stressed big projects take time and funding partners. He described the developer in question as "very credible,""top quality," and "diligent."

"Suffice to say we're not prepared at this point in time to step away from this developer because there's very good progress at this time."

"I don't know that we're going in the right direction here," said Merrithew. "I don't know thatwe're getting, in my humble opinion, what I want from mymoney."

The Saint John Development Corporation Board is made up of seven members:five are appointed by Saint John's Common Council, one is appointed by the province and one is appointed by the federal government.

The mayor of Saint John, Don Darling, and city manager Jeff Trail are ex officio members.