News Release

MONCTON (GNB) – The provincial government will provide a $21 million forgivable loan to enable the development of the downtown centre project and other strategic infrastructure projects in Moncton.

“Our government’s commitment to this strategic recreational infrastructure project will yield a significant return on investment by spurring economic activity and creating jobs in Greater Moncton,” said Health Minister Victor Boudreau, who is also minister responsible for the Regional Development Corporation.

Boudreau made the announcement today in Moncton.

The province’s financial investment in the downtown centre project will consist of a forgivable loan which is conditional on the project following the criteria outlined in the province’s guidelines for recreational infrastructure. These criteria call for applicants seeking funding to: submit a business plan, demonstrate that the project is sustainable without continued government assistance; provide success indicators and measurable economic benefit; and leverage funding and/or investments from federal, local and/or private sources.

The provincial government recently approved the loan package which will allow the city to convert $14 million of the forgivable loan to provincial grants providing the city secures matching funds from other public and private-sector partners.

“To date, discussions on this project have been a moving target. It is our hope that our commitment to invest in this project will permit the City of Moncton the opportunity to leverage appropriate funding from other partners,” added Boudreau. “Our government wants to see this project become a reality. At the same time, we are ensuring that taxpayer dollars and the province’s finances are protected by making the loan conditional on other funding partners being secured.”

The downtown centre project is expected to generate about 700 jobs during construction and 49 permanent jobs associated with operation. The three-year construction phase is anticipated to generate $9.8 million in provincial income tax, while the ongoing contribution from operations is expected to generate $192,000 annually in provincial income tax.

“The economic activity generated by this announcement will benefit the Moncton region and the entire province for many years to come,” said Social Development Minister Cathy Rogers. “We have taken the time to carry out our due diligence and ensure that this investment will generate growth in our city and provide a valuable recreational site for families.”