Business group close to inking Avenir Centre funding deal with Moncton

A business group is close to reaching a $3.75 million agreement to help fund Moncton's Avenir Centre but the 15-year deal may not provide as much funding in the early stages as the group had previously promised.

DowntownMonctonCentre-villeInc. committed three years ago to provide $250,000 annually for 15 years starting next year.

Emailsand letters obtained byCBCearlier this year revealed DowntownMonctoninformed the mayor and senior city staffin 2017 that it likelycouldn't meetits original commitment.

The city plans to use the money to help pay down debt it incurred to build the $113-million centre that opened last month.

The president of DowntownMoncton says the group, which represents more than 1,000 large and small businesses in the city's core, still intends to provide the full $3.75 million.

However, Jim Dixon suggested the funding provided could increase each year asdevelopment ramps updowntown.

"It'll probably grow, obviously, as assessments grow over time. We're confident we'll get there, but we just have to get the final little bit of terms organized," Dixon said.

It's unclear whetherthe length of the commitment will change, meaning the group pays less per year.

The commitment is based on an assumption that construction of the AvenirCentre will spur new downtown development.

The business group is funded through a levy of 16 cents per $100 of assessed value. The levy is applied to commercial properties in the core and covers the group's annual budget of about $800,000.

To meet the funding commitment, the group used city projections indicating the arena would lead to $108 million in new assessment value in the downtown.

But it also assumed the levy would apply to the events centre itself. However, the centre is considered an arena, so the levydoesn't apply.

That discovery last yearled to a scrambleto figure out how to meet its commitment to the city, according to the documents obtained by CBC.

Agreement close

The sides have yet to reach a funding agreement, but Dixon said they are close.

"The city lawyer and our solicitor are just working through the final words of an (memorandum of understanding) that will dictate how the funds will flow," Dixon said.

Greg Turner,Moncton'sdeputy mayor and a DowntownMonctonboard member, said there's general agreement about the amount the group will pay overall.

"As the downtown grows, their ability to pay will grow, so they're looking at a formula like that," Turner said.

Requires council approval

IsabelleLeBlanc,Moncton's director of communications, said in an email she couldn't confirm any details as discussions continue.

The agreement, once reached, will require city council approval.

LeBlancsaid the agreement is expected to go to council soon.