The city of Fredericton has bought one of the largest vacant properties in the downtown area that will house a new provincial justice building and a potential new performing arts centre.
The site will also have space for commercial and residential uses, said the city in a release on Monday.
The property is located at the southwest corner of King and Regent streets, extending east along King and south to Brunswick Street.
The city said it will pay $8.25 million for the property and immediately sell the King Street parcel to the province for approximately $2.4 million.
The city will also collect $1 million in annual property taxes from the justice building development.
For now, the city said the King/Regent street parcel could be a potential location for the new performing arts centre, while the Brunswick Street parcel would be the site of a mix of “high-density commercial and residential uses.”
“This is a once-in-a-generation investment that will serve as an economic anchor in our growing downtown and support our restaurants, hotels, shops, and other businesses,” said Fredericton Mayor Kate Rogers in a press release.
The president of Downtown Fredericton Inc., Mike Babineau, says news of the deal comes at a critical time for businesses.
“The COVID-19 pandemic has been incredibly difficult for downtown business owners, many of whom have struggled this last year,” he said. “This investment in the growth of the downtown is a wonderful light at the end of a very long tunnel.”
According to the city, the province will also be getting the NB Power land further east on King Street in a separate transaction.