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Proposed Downtown Centre Update


 

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July 31, 2015

For immediate release

 

Proposed Downtown Centre Update

 

MONCTON –As the deadline for the City’s decision on the Downtown Centre project is approaching, it is important for residents to be up-to-date on information and developments regarding the proposed facility.

Over the past few weeks, Moncton City Council has been meeting regularly and doing its due diligence to understand the details of the proposed funding plan and long term financial implications of the project. As this is potentially the city’s largest construction project in its history, the complexity of the Downtown Centre project calls for members of Council to review the funding information presented to them before making a final decision. 

Next steps 
The City is in the process of working with both levels of government in order to secure and finalize funding commitments for this project. Once the complete funding picture comes into focus, Council will be presented with an updated funding plan and long-term financial plan for approval. 

Should Council choose to move further into the process, a Special Public Council Meeting will be held in mid-August where the funding plan and long term financial plan will be presented publicly. If both are accepted, the evaluation committee will bring forward its recommendation to award the RFP in order to meet the September 30 deadline for the financial and legal close.

Public Presentation
If the project is approved , the successful proponent, in conjunction with City officials, will present the details of the proposed facility to the public. The content will include the interior and exterior look and feel of the facility, the seat count, the surfaces and amenities, amongst other features. Residents will be notified of the date and time of this presentation.

Project execution timeline
Should the project meet the financial and commercial close date of September 30, 2015, construction would likely begin early in 2016 with a projected completion date of September 2018.

Facts about the Downtown Centre:

-              The selected site contains 11 acres. The footprint and associated lands of the Centre would occupy
approximately 7.5 acres and the remaining acres would be sold as ancillary land for private sector development. 
- The project is a multi-use sport and entertainment facility which will include: an ice pad, luxury suites, several hundred club seats, retractable seating, an event day restaurant, meeting spaces and an outdoor civic space/public plaza. The facility will be a highly energy-efficient and fully accessible building and will spur residential, retail as well as commercial development.

- The Request for proposals (RFP) issued in March 2014 is for the design, build, finance, operation and maintenance of the multi-purpose facility.

- The total project cost is $107.9 million ($95.4 million for the construction and $12.5 million for the land).
- The proposed financial plan calls for the following contributions:

o $39 million from the City of Moncton
o $24 million from the Province of New Brunswick
o $24 million from the Federal Government
o $5 million from a Capital Campaign (target)
o $3.5 million from the sale on ancillary land (target)

- It is projected that the Downtown Centre will generate between $12 -$15 million in spending downtown yearly. (Source: David Campbell, Moncton’s Proposed Downtown Centre: Anchoring a Vibrant Downtown, 2013)

- It is estimated that the provincial government will receive tax revenue of $6.2 million in the first two years, followed by $200,000 per year, every year, as ongoing revenue from operations. (Source: Pierre-Marcel Desjardins, An Economic Impact Analysis of a Proposed Downtown Centre for the City of Moncton, 2013)

- It is estimated that the federal government will receive tax revenue of $10.8 million in the first two years due to construction, followed by $250,000 per year, every year, as ongoing revenue from operations. (Source: Pierre-Marcel Desjardins, An Economic Impact Analysis of a Proposed Downtown Centre for the City of Moncton, 2013)

- During construction, the facility will create 713 full-time equivalent positions, and 49 jobs will be created as a result of ongoing operations once it is open to the public.

 

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Media Contact:
Isabelle LeBlanc
Director of Communications, City of Moncton
isabelle.leblanc@moncton.ca / 506-853-3592