DOWNTOWNUPDATE

Al Strang, City ManagerSeptember 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)

LANDINVOLVED

CURRENTSTATUS 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

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, PresidentCyr Holdingswill present his proposal

Presentation toMoncton 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 50-60 permanent jobs

Infusion of 200-225 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 uponMr. 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 20-25 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 CENTREFUNDING 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