Fredericton Exhibition Ltd. is taking legal action against the City of Fredericton, claiming the city has failed to honour agreements of the perpetual lease.
Mike Vokey, executive director of the Exhibition, said the city, which currently owns the land, is failing to follow through on its duties under the Landlord and Tenant Act.
According to an application filed with the Court of Queen’s Bench, the Fredericton Exhibition says the city “unreasonably withheld its consent to a Collateral Mortgage” between the Exhibition and the Royal Bank of Canada.
The application contains allegations that have yet to be tested in court. Wayne Knorr, the communications manager for the City of Fredericton issued this statement when contacted:
“Legal documents have been filed with the Court of Queen’s Bench of New Brunswick and the City of Fredericton will not be commenting at this time on matters involving the Fredericton Exhibition Limited.”
READ MORE: Fredericton Exhibition looking for public support as city looks to redevelop land
Vokey said the city has not fulfilled its obligations under the lease agreement and said the suit also addresses issues regarding subletting tenants.
He said William’s Seafood, a restaurant located on the exhibition grounds, wanted to extend its lease. In the past, Vokey said the sublet was usually stamped and approved. But this time, he said, the city returned it because it “didn’t want to deal with it.”
Vokey also said the city unreasonably withheld its consent to allow retired Fredericton boxer Brandon Brewer to lease the second floor of the former Winner’s Lounge to open a sports combat and wellness centre.
Vokey said that there should have been no issue, but that the city didn’t sign the lease for Brewer to use the facility.
Brewer told Global News it’s disappointing to be denied something he was passionate about.
“It’s really frustrating. At the end of every day, I get messages from mothers, fathers, kids, just everyday people, just looking for when the facility’s going to open, when we’re going to get approved. So it’s a daily frustration that we kind of run into, but hopefully we can come to terms with the city,” Brewer said.
“I did everything that they asked, so hopefully we can come to an agreement.”
Brewer said he doesn’t think the city realizes how much “putting that stamp on the piece of paper” can change the lives of people looking for a place to come do combat sports, do yoga and take mindfulness classes to improve their mental health.
WATCH: Fredericton Exhibition sees another successful year
According to Vokey, the Odell originally gifted the land to the Fredericton Exhibition. The Exhibition transferred the deed to the city after the Second World War to avoid a tax burden. In exchange, the Exhibition received a perpetual lease.
“It’s in the intent of the agreement between the city and the Exhibition that the Exhibition would be allowed to go conduct its day-to-day business. Preventing us from generating revenue by not signing these leases is preventing us from doing our business,” Vokey said.
The city wants to redevelop the Exhibition Grounds and use the Smythe Street property for high-density, affordable housing.
Vokey said that whether the city wants to look at rezoning and redeveloping the land, it still needs to honour the lease and allow the Exhibition to run its day-to-day business, which includes subletting facilities. He said the Exhibition is willing to work with council and staff to “re-imagine” the property so it benefits everyone’s interests.
READ MORE: Horse owners caught in middle of Fredericton Exhibition and Horse Racing New Brunswick squabble
The court date for the lease dispute is scheduled for Aug. 10.