Saint John incentivizing large-scale development
The City of Saint John is taking steps to encourage more large-scale development.
A new incentive program was adopted by Common Council this week that is expected to maximize high-rise development opportunities in the uptown and inner harbour area of the city.
The program is based on an incentive review study presented to the city’s growth committee in May.
According to Deputy Mayor John MacKenzie, the study looked at various building types to determine if the City should provide incentives.
“The key findings of this study were that mid-rise developments were already viable, but that high-rise development was not viable without additional support,” MacKenzie said.
MacKenzie said the new incentive program would target land in the uptown and Main Street area where the municipal plan directs the highest level of density.
A project must have a minimum of 150 units at a density of 400 units per hectare and a minimum building cost of $40 million to qualify.
The report to council said the program emphasizes predictability and certainty. A grant is divided evenly over a 10-year period, allowing lenders to recognize the subsidy as stable income for underwriting purposes, reduce risk and improve chances of high-rise projects going forward.
