Province takes pass on funding for Saint John waterfront project

Saint John's Fundy Quay project could be about to lose critical federal funds after the province turned down a city grant request.

The $218-million residential and commercialFundy Quay project is planned for the former Canadian Coast Guard site at the foot of King Street.

But it hinges in part on the six-acre property (2.4 hectares) being made "development ready."

That would require the reconstruction of the sea wall, removal of contaminated soilsand raising the overall level of the site 1.5 metres in anticipation of rising seas because of climate change.

The federal Liberal government and the city each committed $10 million to the work. The Progressive Conservative provincial government, through the Regional Development Corporation, has declined.

Tax revenue cited

The federal portion is contingent on the province opting in, saidWayne Long, the Liberal MP for Saint John-Rothesay.

"I'm extremely disappointed," Long said. "There's federal infrastructure money there waiting to be unlocked by the provincial government."

Develop Saint John CEO Steve Carson said that with anticipated construction tax revenue of $32 million for the province there's a solid case for the requested $10 million, which would be spread over five years.

"It's very critical to the success of moving the project forward," said Carson. "We're very concerned and we're hopeful to having some followup meetings later this week with the province to have some further discussions on it."

Coun. Blake Armstrong blasted Saint John's four government MLAs after the decision letter was released at city council Monday evening.

"We have four ministers representing this city," he said. "Please, speak up."

Environment, health the priorities

Fundy Quay Developments Inc. was granted a two-year, $250,000 option on the property in December.

The company is headed by Dr. David Elias of Rothesay. He could not be reached Tuesday for comment.

Bruce MacFarlane, a spokesperson for the Regional Development Corporation, said it received 163 applications asking for a total of $886 million this year.

"Based on community needs, working within the budget, we've determined water and wastewater projects would recieve priority at this time, focusing on human health and environmental safety concerns," said MacFarlane.