DOWNTOWN UPDATE Al Strang, City Manager September 6, 2005

BACKGROUND  City of Moncton sells three parcels of land (former Beaver Lumber property) to Ash-verd Holdings  Deal closed June 10, 2005  Three parcels of land involved: East side of Westmorland (Courthouse lands) West side of Westmorland between Rogers building and Market (North property) Corner of Westmorland and Assomption (Convention Centre property)

LAND INVOLVED

CURRENT STATUS  Deal in escrow until replacement parking deal finalized  Council must approve parking deal  45-day timeline does not begin until a parking deal is finalized

A GOOD PROBLEM  A great development opportunity, we need to fit the pieces together on the available land  Committee struck to do due diligence and explore options (with Council’s blessing) Convention Centre property too small to hold a hotel, apartments Something will have to be relocated, look at options for South side of Assomption Convention centre should be a stand-alone facility, showpiece, built for expanded future use

CONGESTION: too much for too little space

OPTIONS  Bernard Cyr looked at how he could develop hotel on the south side of Assomption Minimal impact on trail system, integrated into Riverfront This land is better suited for a hotel, less intrusive than a Convention Centre Mr. Cyr is a local developer with a proven track record (Chateau Moncton well integrated with Riverfront) For your consideration, Mr. Bernard Cyr, President Cyr Holdings will present his proposal

Presentation to Moncton City Council September 6, 2005

Introduction  Approached to consider moving development to south side of Assumption Blvd  Agreed to consider option seriously  And we now agree that this is a viable solution to the need for space on the north side

Our Proposal  125-room high-end hotel suites and spa with a full- scale restaurant, possible return of Cy’s brand  Will have full spa and pool facility  Will target business travelers during the week  Will target families for weekend business

Timing  We would like to start this fall (2005) – no more delays  We also agree to drop the condition – to only build with the Convention Centre – realize it will take time to finalize funding formula with 3 level of governments  And market conditions make it crucial for us to move immediately

Features  Creation of permanent jobs  Infusion of new visitors daily to downtown Moncton  $10-$12 million project  150 Parking Spots

Part of the Riverfront….  Designed to bring life to the riverfront as experienced with the Chateau Moncton  Will work cooperatively with city to ensure complete integration to the riverfront: –Bicycle paths –Walking trails –Flower gardens –Lamp posts, benches, etc.

Key Considerations  Cost of land must be consistent to north side  Hotel suites & spa connected to Convention Centre via pedway

Next Steps  Needs council approval for construction to begin this Fall (2005)  Will need height variance  Understand that the zoning conforms with the proposed hotel suites and spa  Hotel suites and spa will open in June 2007  The project will be first class

PARKING  Parking has been key to developing this proposal  We have a solution I’d like to call upon Mr. Patrick Gillespie, President AshFord Investments Inc.

PARKING / CONVENTION CENTRE  Best solution  Little disruption of current parking on property  Common foundation, synergies (links and connections within development and existing downtown)  Can relocate Rogers spaces at no cost  Lease the structure over a years, at flat rate

PARKING / CONVENTION CENTRE CONTINUED  Parking spaces over and above those for Rogers will be leased at market rate to offset fixed cost of structure  Do not have to purchase land since we are leasing  Glass half full, not the solution to all parking in downtown but helps for next few years

CONVENTION CENTRE FUNDING  Contingent on funding  Support from all levels of government  Mr. Cyr very confident — he’s going ahead with his hotel

CONCLUSION  Complex deal  Many players involved  Catalyst for future development  Lots of changes, lots of work and due diligence to get to where we are today  What we have is still true to Council desire for downtown development  Back for final approval in two weeks