Saint John fumbled investment opportunity, says developer - Action News
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New Brunswick

Saint John fumbled investment opportunity, says developer

Saint John developer Mac Blair says the city bungled an opportunity to bring jobs and investment into the uptown when it rejected an offer to take over the former synagogue.

Mac Blair says 2014 offer for former synagogue was rejected

The city-owned fomer synagogue building has been vacant for the past eight years (Connell Smith/CBC)

Saint John developer Mac Blair says the city bungled an opportunity to bring jobs and investment into the uptown when it rejected an offer to take over the former synagogue.

Blair says he and business partner Nolan McDonald were prepared to spend $1.9 million to renovate the building to create office and public venue space.

Potential for 50 new jobs

He says they had a tenant prepared to bring 50 new jobs into the city on the strength of the proposal, the unique building, and its central location.

The offer was far from straightforward, the partners expected the city to push the provincial government for a suspension of property taxes on the building.

"We would also need a property tax exemption granted by the province for 15 years," said McDonald in the document.

Free parking spots

On top of that, the partners requested 10free parking spots in the Peel Plaza parking garage, which waslargely vacant at the time.

Mac Blair says his company was prepared to invest $1.9 million to develop the former synagogue (CBC)
"We put forward an offer, our offer got turned down," said Blair. "There was no counter by the city, they simply said no."

Blair says the offer was made in September2014 through Frame Rates, a company he owns in partnership with McDonald, who is a producer and former professional hockey player.

"There was no parking," said Blair. "And we saw an empty parking garage across the roadway and said 'Well, we need 10spots, we're going to have 50 people in this building, give us 10free spots for 10years across the street in your empty garage, and they said 'No.'"

Blair says they initially offered $1 for the building but raised the offer to $150,000 on the condition the city take responsibility for environmental cleanup of the property.

Reason for rejection unclear

Councillors contacted by CBC say they recall an offer being made to purchase the building but do not recall details about why it was rejected.

Ward 3 Coun. Donna Reardon says there is a strong will at city hall to see the building developed and the amount of money in any offer would likely not be an issue.

"I think some councillors were probably looking to make a deal and some councillors had some concerns or questions, or whatever, that didn't get answered."

She says she would have no trouble saying yes to a $1 offer.

"I would," said Reardon. "But I would only do that with some sort of contract that would guarantee a certain investment over a certain amount of time."

Reardon says she would also want a guarantee the 145-year-old, provincially designated heritage building wouldnot be demolished.

Window of opportunity gone

Demolition was not part of the plan for Blair and his partner.

I would say that in five years time that building will need to be torn down.- Mac Blair, developer

Blair says councillors should have asked for a face-to-face meeting to hear the proposal.

He adds the window of opportunity has now passed.

"So it stillsits there," said Blair. "I would say that in five years time that building will need to be torn down."

Project scaled back

The city purchased the building in 2008 from Saint John's Jewish community for $275,000.

At the time, the municipality was planning a public private partnership described as "North of Union" that would see a potential developer incorporate several properties into a justice complex and mix of residential and commercial uses.

The project was later scaled back.

The former synagogue has been vacant for eight years.