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2008-04-28_Supplemental Agenda Packet--Dossier de l'ordre du jour supplémentaire (2)City of Saint John Common Council Meeting Monday, April 28, 2008 Supplemental Agenda 2.1 Minutes Special Council Meeting March 27, 2008 2.3 Minutes Special Council Meeting April 17, 2008 13.4 Investment in Municipal Infrastructure and Retail Drive 13.5 Property Acquisition City of Saint John Stance du conseil communal Le lundi, 28 avril, 2008 Ordre du jour supplementaire 2.1 Le proces-verbal de la seance extraordinaire du conseil communal tenue le 27 mars 2008 2.3 Le proces-verbal de la seance extraordinaire du conseil communal tenue le 27 avril 2008 13.4 Rapport du comite plenier relatif a I'investissement Bans les infrastructures municipales 13.5 Rapport du comite plenier relatif a ('acquisition de biens- fonds 93-394 COMMON COUNCIL/CONSEIL COMMUNAL MARCH 27, 2008/LE 27 MARS 2008 1 COMMON COUNCIL SPECIAL MEETING -THE CITY OF SAINT JOHN ~ ( CITY HALL -March 27, 2008, 5:00 P.M. present Norman McFarlane, Mayor Deputy Mayor Hooton and Councillors Chang, Chase, Court, Farren, Ferguson, McGuire, Tait, Titus and White - and - T. Totten, City Manager; J. Nugent, City Solicitor; Greg Yeomans, Commissioner of Finance and Treasurer; J. Baird, Commissioner of Planning and Development; P. Woods, Deputy City Manager; A. Beckett, Deputy City Manager of Programs and Priorities; A. Bodechon, Chief of Police; W. Reid, Deputy Police Chief; E. Gormley, Common Clerk and J. Ferrar, Administrative Assistant SEANCE EXTRAORDINAIRE DU CONSEIL COMMUNAL DE THE CITY OF SAINT JOHN TENUE ,4 L'HOTEL DE VILLE, LE 27 MARS 2008 a 17 H Sont presents Norman McFarlane, maire la mairesse suppleante Hooton et les conseillers Chang, Chase, Court, Farren, Ferguson, McGuire, Tait, Titus et White et T. Totten, directeur general; J. Nugent, avocat municipal; Greg Yeomans, commissaire aux finances et tresorier; J. Baird, commissaire a I'urbanisme et au developpement; P. Woods, directeur general adjoint; A. Beckett, directeur general adjoint, programmes et priorites; A. Bodechon, chef de police; B. Reid, chef de police adjoint; ainsi que E. Gormley, greffiere communale et J. Ferrar, adjointe administrative. Call To Order -Prayer Mayor McFarlane called the meeting to order and offered the opening prayer. Ouverture de la seance, suivie de la priere La seance est ouverte par le maire McFarlane qui recite la priere d'ouverture. 1.1 North of Union Street Development Referring to his submitted report, the City Manager, through an electronic presentation, reviewed the recommendations for the North of Union Development. On motion of Councillor Tait Seconded by Councillor Court RESOLVED that as recommended by the City Manager, Common Council adopt the following recommendations with respect to the North of Union Development: a) With respect to the Development Plan a. That the City of Saint John reconfirm its desire to approve a Development Concept that would result in the construction of Justice Facility, a Police Facility and the required Parking Facility in the area which is now been commonly referred to as "North Of Union". b. That Council confirms its position that the preferred Development Concept includes the Justice Facility being constructed on the lands commonly known as the YMCA site. 93-395 COMMON COUNCILICONSEIL COMMUNAL MARCH 27, 2008/LE 27 MARS 2008/ c. That Council approves the construction of the Police Facility in the block generally bounded by Hazen, Chipman, Peel and Union Streets (may include portions of existing Right of Ways). d. That Council approves the construction of a Parking Facility on what is commonly referred to as the Carleton Street Escarpment. b) With respect to Public Consultations a. That Common Council will require that any development proposal to be considered must address, and be sensitive to, the "Big Ideas" and "Design Guidelines" that were developed as a result of receiving public input. b That any development proposal, when received, be not only evaluated against these "Big Ideas" and a list of other criteria to be developed, but must also be evaluated with respect to the developers commitment to ongoing public consultation as part of the Development Planning Process. c. That the Public be provided with opportunities for input on final designs for each of the major public components and new design concept for the site (Police Facility, Parking Garage, Public Plaza) input regarding proposals for development of the area from the private sector and input regarding art components to be associated with the new development. c) With respect to the requirements of the Police Facility a. That Common Council request the Police Commission to have their Architects of record revisit their program and conceptual plans to determine if it is possible to: i. Have the facility be located generally within the block as identified without significantly diminishing the operational efficiencies. ii. Pay particular attention to the views expressed regarding streetscapes during the public consultations and in particular the'Design Guidelines'. iii. Once the Police Commission has approved a revised conceptual design, submit the design to Council for authority to proceed. d) With respect to the Police tenancy in City Hall a. That the City of Saint John formally notify the existing owners of the City Hall building prior to April 30, 2008 that the City is exercising its option to extend its occupancy related to the Police Space until April 30, 2011. e) With respect to developing an effective Alternative Procurement Method a. That Common Council authorize the City Manager, working with the City's Purchasing Agent and City Solicitor to embark on a process of inviting submissions for professional expertise related to the following: i. Preparing a Call for Expressions of Interest and Statement of Qualifications; ii. Assistance in the review and short listing of possible Developers; iii. Preparation of the final Request for Proposal with an established Evaluation Process; iv. Preparation of the final contract documents in consultation with the City Solicitor. f) With respect to the issue of Tender versus An Alternative Procurement Process a. That Common Council authorize the City Manager to proceed on the basis of using an Alternative Procurement Process that would result in: i. A Call for Expressions of Interests and Statement of Qualifications as the initial step; ii. Followed by a Short Listing Exercise based on criteria to be established; iii. Issuance of a Call for Proposals to qualified Development Companies or Consortiums; 93-396 COMMON COUNCIL/CONSEIL COMMUNAL MARCH 27, 2008/LE 27 MARS 2008 iv. That the Call for Proposals will stipulate the City's desire to have the respondents indicate options related to the design (excluding Police HQ), construction, financing and perhaps ongoing maintenance of any of the components of the development or part(s) thereof namely, the Police HQ, the Parking Structure, Rehabilitation of the Carnegie Building, all Civil Works, the Plaza and Public Spaces deemed critical to this development. g) With respect to Discussions with Property Owners in the Area a. That Common Council direct the City Manager to cease making any further offers on properties in the general area without prior direction from Council sitting in Committee of the Whole. b. That the City Manager be directed to communicate to any property owner in the area who is in possession of an offer from the City Manager, that they have until April 30`h to accept the offer (subject to Council approval) as presented or the Offer is off the table. c. That Council request the Saint John Parking Commission to take any reasonable steps to acquire any additional lands that would allow for a properly designed Parking Facility on the proposed escarpment site. h) With respect to Negotiations with the Province of New Brunswick a That the City Manager in conjunction with the Police Commission, be directed to work toward finalizing the following: i. A Formal Memorandum of Intent related to the cost sharing of certain elements (Plaza, Public Space, Parking, Secure Link, Holding Cells) of the development including; ii. Agreement with respect to on going responsibilities for each of these components including maintenance, upkeep and staffing and; iii. Agreement with respect to responsibility for design and construction of these shared elements and; iv. Agreement with respect to scheduling and completion dates Question being taken, the motion was carried. 1.1 Amenagement du secteur situe au Hord de la rue Union Se reportant a son rapport presente anterieurement, le directeur general, a I'aide d'un diaporama electronique, fait le point sur les recommandations formulees Bans le cadre du projet d'amenagement du secteur situe au Hord de la rue Union. Proposition du conseiller Tait Appuyee par le conseiller Court RESOLU que, comme le recommande le directeur general, le conseil communal adopte les recommandations suivantes relativement au projet d'amenagement du secteur situe au Hord de la rue Union A. Plan d'amenagement a) que The City of Saint John reconfirme son desir d'approuver un concept d'amenagement qui viserait a construire un centre judiciaire, un poste de police et un parc de stationnement dans le secteur communement appele le « Hord de la rue Union »; b) que le conseil confirme sa position par rapport au concept d'amenagement voulant que le centre judiciaire soit de preference construct sur le terrain communement appele ('emplacement du YMCA; c) que le conseil approuve la construction du centre judiciaire sur Pilot generalement delimits par les rues Hazen, Chipman, Peel et Union (certaines portions des droits de passage existants pourraient y figurer); d) que le conseil approuve la construction d'un parc de stationnement sur le terrain communement appele I'escarpement de la rue Carleton. 93-397 COMMON COUNCILlCONSEIL COMMUNAL MARCH 27, 20081LE 27 MARS 20081 B. Consultations publiques a) que le conseil communal exige que toute proposition d'amenagement examinee traite des «grandes idees » et des «lignes directrices de conception » elaborees par suite a la contribution du public; b) que toute proposition d'amenagement regue soft evaluee en tenant compte de ces «grandes idees » et une liste d'autres criteres devant titre elabores et, qu'en outre, que cette proposition snit evaluee en considerant ('engagement du promoteur a poursuivre les consultations publiques a meme le processus de planification du projet d'amenagement; c) qu'on accorde au public des occasions de s'exprimer relativement aux concepts definitifs de chaque element public important, aux nouvelles conceptions touchant ('emplacement (poste de police, garage de stationnement, place publique), aux opinions du secteur prive sur les propositions d'amenagement du quartier et aux suggestions visant les composantes artistiques liees au nouveau projet d'amenagement. C. Exigences relatives au poste de police a) que le conseil communal exige que la Commission de police demande aux architectes inscrits au dossier de proceder a un reexamen de leurs programme et plans de conception afin de determiner si les mesures suivantes sont realisables i) amenager ('installation a I'interieur de Pilot, de fa~on generate, comme it a ete determine, sans toutefois restreindre considerablement I'efficacite operationnelle; ii) preter une attention particuliere aux opinions exprimees pendant les consultations publiques en matiere de paysages de rue et plus precisement dans le cadre des «lignes directrices de conception »; iii). soumettre le concept au conseil a des fins d'autorisation a proceder, une fois que la Commission de police aura approuve la conception revisee. D. Bail conclu par le corps de police relatif a ('hotel de ville a) que The City of Saint John avise officiellement les proprietaires actuels de I'immeuble abritant ('hotel de ville au plus tard le 30 avril 2008 que la Ville prevoit exercer son option de reconduire jusqu'au 30 avril 2011 le bail relatif a I'espace occupe par le corps de police. E. Elaboration dune methode d'approvisionnement efficace differente a) que le conseil communal autorise le directeur general, en collaboration avec ('agent d'achat municipal et I'avocat municipal, d'intenter un processus d'appel de soumissions pour engager des experts dans les domaines suivants i) la preparation d'un appel de manifestation d'interet et d'enonce de criteres de merite; ii) de ('aide pour examiner et selectionner les promoteurs eventuels; iii) la preparation dune demande de proposition definitive et I'etablissement d'un processus devaluation; iv) la redaction de la documentation contractuelle definitive en collaboration avec I'avocat municipal; F. Soumission relative ~ une methode d'approvisionnementdifftirente a) que le conseil communal autorise le directeur general a proceder selon une methode d'approvisionnementdifftirente visant a obtenir les resultats suivants i) un appel de manifestation d'interet et d'enoncti de criteres de merite comme premiere etape; ii) par la suite, I'etablissement dune liste restreinte de candidats fondee sur des criteres precises; iii) la delivrance d'un appel de propositions aux entreprises ou aux consortiums d'amenagement; 93-398 COMMON COUNCIL/CONSEIL COMMUNAL MARCH 27, 2008lLE 27 MARS 2008 iv) que I'appel de propositions stipule que la Ville desire que les repondants precisent des options liees a la conception (a ('exclusion du quartier general de police), a la construction, au financement et peut-titre a I'entretien regulier de tout dement de I'amenagement, dans son ensemble ou en partie, le quartier general de police, la construction du parc de stationnement, la rehabilitation de I'immeuble Carnegie, tous les travaux civiques, la place publique et les lieux publics juges cruciaux pour ce projet d'amenagement. G. Discussions avec les proprietaires du quartier a) que le Conseil communal charge le directeur general de cesser le depot d'offres sur les proprietes dans les environs sans autorisation prealable du Conseil siegeant en comite plenier; b) que le directeur general soft charge de communiquer avec tout proprietaire du quartier en possession dune offre delivree par le directeur general indiquant que la date limite d'acceptation de I'offre, telle qu'elle est presentee, est fixee au 30 avril au plus tard (sous reserve de ('approbation du Conseil) et qu'a ('expiration de ce delai, I'offre nest plus valable. c) que le Conseil demande a la Commission sur le stationnement de Saint John d'entreprendre toute demarche raisonnable afin d'acquerir des terrains additionnels qui permettraient de concevoir un parc de stationnement adequat sur ('emplacement de I'escarpement. H. Negotiations avec la province du Nouveau-Brunswick a) que le directeur general, en collaboration avec la Commission de police, soit charge de conclure les conventions suivantes i) un memorandum declaratif d'intention officiel relatif au partage des Gouts de certains elements (place publique, espaces d'acces au public, lieux securitaires, quartiers cellulaires) du projet d'amenagement, y compris les suivants ii) une entente conclue relativement aux responsabilites continues de chacun de ces elements, notamment le maintien, I'entretien et les effectifs; iii) une entente relative aux responsabilites en matiere de conception et de construction de ces elements partages; iv) une entente relative au calendrier indiquant les dates d'achevement des travaux. ,4 Tissue du vote, la proposition est adoptee. 16. Adjournment The Mayor declared the meeting adjourned. 16. Levee de la seance Le maire declare que la seance est levee Mayor/maire Common Clerk/Greffiere communale 93-462 COMMON COUNCILlCONSEIL COMMUNAL April 17, 2008lLe avril 2008 COMMON COUNCIL MEETING -THE CITY OF SAINT JOHN CITY HALL -SPECIAL MEETING, April 17, 2008 8:00 A.M. ' ~ present Norman McFarlane, Mayor Deputy Mayor Hooton and Councillors Chang, Chase, Court, and Titus -and- T. Totten, City Manager; J. Nugent, City Solicitor; Greg Yeomans, Commissioner of Finance and Treasurer; and E. Gormley, Common Clerk SEANCE EXTRAORDINAIRE DU CONSEIL COMMUNAL DE THE CITY OF SAINT JOHN TENUE A L'HOTEL DE VILLE, LE 17 AVRIL 2008 A 8 H Sont presents Norman McFarlane, maire le maire suppleant Hooton et les conseillers Chang, Chase, Court et Titus et T. Totten, directeur general; J. Nugent, avocat municipal; Greg Yeomans, commissaire aux finances et tresorier; et E. Gormley, greffiere communale 1. Call To Order Mayor McFarlane called the special meeting to order. 1. Ouverture de la seance La seance extraordinaire est ouverte par le maire McFarlane. 2. 2008 Debenture Issue On motion of Deputy Mayor Hooton Seconded by Councillor Titus RESOLVED that: Whereas occasion having arisen in the public interest for the following public civic works and needed civic improvements, that is to say: GENERAL FUND General Government $ 500,000 Protective Services $ 750,000 Transportation Services $ 4,000,000 Environmental Health $ 300,000 Economic Development $ 1,500,000 Parks and Recreation $ 1,450,000 WATER & SEWERAGE UTILITY Water System $ 2,000,000 Sewer System $ 500.000 $ 8,500,000 $ 2,500,000 TOTAL $ 11,000,00 93-463 COMMON COUNCILICONSEIL COMMUNAL April 17, 2008/Le avril 2008 1. Therefore resolved that debentures be issued under provisions of the Acts of Assembly 52, Victoria, Chapter 27, Section 29 and amendments thereto to the amount of $11,000,ODO. 2. Commissioner of Finance be authorized to issue and to sell to the New Brunswick Municipal Finance Corporation (the "Corporation") a City of Saint John bond or debenture in the principal amount of $11,000,000 at such terms and conditions as are recommended by the Corporation. 3. And further that the City of Saint John agrees to issue post-dated cheques to the Corporation, or other such arrangements as the Corporation may from time to time accept, in payment of principal and interest charges on the above bond or debenture as and when they are required by the Corporation. 4. And further that the Commissioner of Finance be hereby authorized to receive an offer in connection with the foregoing debentures at a price not less than $98 per $100 of debenture, at interest rates not to exceed an average of 6.50% and at a term not to exceed 15 years for the issue related to the General Fund and Transit and not to exceed 20 years for the Water & Sewerage Utility. 5. And further that the Commissioner of Finance report to Common Council the exact values for price per $100 of debenture, interest rate and term in years, together with the date of the issue. Question being taken, the motion was carried. 2. Emission de debentures pour 2008 Proposition de la mairesse suppleante Hooton Appuyee par le conseiller Titus RESOLU QUE Considerant la necessite, dans I'interet public, de proceder a ('execution de travaux publics et d'apporter certaines ameliorations municipales, a savoir FONDS D'ADMINISTRATION Administration generate Services de protection Services de transport Salubrite de I'environnement Developpement economique Pares et loisirs 500 000 $ 750 000 $ 4 000 000 $ 300 000 $ 1 500 000 $ 1 450 000 $ 8 500 000 $ RESEAU D'AQUEDUC ET D'~GOUTS Reseau d'aqueduc Reseau d'egouts 2 000 000 $ 500 000 $ 2 500 000 $ TOTAL 11 000 000 1. En consequence, it est resolu que soient emises des debentures en vertu des dispositions des Lois de !a Chambre d'assemb/ee, 52 Victoria, chapitre 27, article 29, et des modifications afferentes, pour la somme de 11 000 000 $; 2. que le commissaire aux finances soit autorise a emettre et a vendre a la Corporation de financement des municipalites du Nouveau-Brunswick (la 93-464 COMMON COUNCILICONSEIL COMMUNAL April 17, 20081Le avril 2008 « Corporation ») une obligation ou une debenture de The City of Saint John au montant principal de 11 000 000 $ etablie selon les modalites recommandees par la Corporation; 3. en outre, que The City of Saint John accorde son assentiment a ('emission de cheques postdates au nom de la Corporation, ou a toute autre disposition que la Corporation peut accepter a tout moment, pour le paiement du principal et des interets relatifs a ('obligation ou ~ la debenture susmentionnee au moment requis et dans la forme exigee par la Corporation; 4. de plus, que le commissaire aux finances soit autorise, par les presentes, a accepter une offre, relativement aux debentures susmentionnees, a un tarif egal a au moins 98 $ pour 100 $ d'obligations, a un taux d'interet maximal de 6,5 en moyenne et pour une duree maximale de 15 ans pour ('emission relative au fonds d'administration et au service de transport et une duree maximale de 20 ans pour le reseau d'aqueduc et d'egouts; 5. et de plus, que le commissaire aux finances presente un compte rendu au Conseil communal, indiquant la valeur exacte du tarif pour 100 $ en debentures, le taux d'interet, et le terme en annees, ainsi que la date d'emission. A Tissue du vote, la proposition est adoptee. 3. Adjournment The Mayor declared the meeting adjourned at 8:05 a.m. 3. Levee de la seance Le maire declare que la seance est levee a 8 h 5. Mayor/maire Common Clerk/greffiere communale (3 . `~ a :o~ M&C #2007-132 a, The City of Saint Iohn Apri124, 2008 OPEN SESSION His Worship Mayor Norm McFarlane and Members of Common Council Your Worship and Members of Council: SUBJECT: INVESTMENT IN MUNICIPAL INFRASTRUCTURE AND RETAIL DRIVE PURPOSE: The purpose of this report is to seek a decision of Common Council related to a request from East Point Inc. for an additional contribution of $1.6 million towards the construction of the municipally owned street known as Retail Drive. Rational for the Request: Council will recall that East Point Inc, had originally sought approval to construct only a small portion of Retail Drive. However, because of Council's concerns related to the volume of traffic on McAllister Drive, Council and staff encouraged East Point Inc. to construct all of Retail Drive from Westmorland Road to Rothesay Avenue. East Point Inc. and staff entered into negations and staff was successful in capping the City investment at $3.5 million of which, $650,000 would be repayable at some future date. In other words, the City's net investment would ultimately be $2,850,000. East Point Inc. reluctantly agreed and proceeded to build all of Retail Drive according to City specifications and also agreed to add additional lanes and change the slope of the road to improve vehicle safety. Althaugh East Point Inc. did agree and proceed, the Developer's position has always been that the Developer has invested more than its fair share in this portion of municipal infrastructure. Their position has always been based on the findings of an analysis prepared by ADI Limited. ADI, after having studied traffic patterns, concluded that Retail Drive would not only serve the retail development, but would eliminate considerable congestion on other municipal streets. Report to Common Council Page 2 Subject: Investment in Municipal Infrastructure and Retail Drive Applying ADI's rational, the City's share including piping materials would amount to $4,231,000 (based on the original design and cost estimates). With the increased costs of construction of the enhanced road, the Developer's position is that the City's net contribution of $2,850,000 is approximately $1.6 million less than what it should have otherwise been. The ramifications of this situation is that the high cost incurred by the Developer to construct all of Retail Drive is causing the cost of servicing the lands adjacent to Retail Drive to be more than the market can bear. In other words, the high cost of constructing Retail Drive is making the land unattractive to the multinational retailers, many of whom are willing to locate in Saint John, and in fact want to locate in East Saint John. FINANCIAL ANALYSIS: Based on information supplied by the Developer, a business case has been prepared by the City that can be recovered in six to seven years. Staff believes this analysis to be very conservative. However, to provide added protection to taxpayers, the Development Agreement has been amended to reflect the fact that the additional investment by the City would not be made until the steel work has been erected for at least another 135,000 sq. ft. of retail space. In other words, the investment will be made only when it is clear that construction and therefore tax base will accrue. RECOMMENDATION: That Common Council considers this request and should Council determine that the additional investment is in the best interest of the community, the following resolution would be appropriate; That Common Council approve the attached Agreement between East Point Inc. and the City of Saint John and authorize the Mayor and Common Clerk to execute the CITY MANAGER Attachment Terrence L. Totten, FCA April 22/08 THIS AGREEMENT made in triplicate this day of , 2008. BY AND BETWEEN: EAST POINT INC., a body corporate incorporated under the laws of the Province of New Brunswick, having its registered office at 479 Rothesay Avenue, Saint John, New Brunswick, hereinafter called "East Point", -and- THE CITY OF SAINT JOHN, having its City Hall at 15 Market Square, Saint John, New Brunswick, a body corporate by Royal Charter, confirmed and amended by Acts of the Legislative Assembly of the Province of New Brunswick, hereinafter called the "City", WHEREAS the Common Council of the City pursuant to the provisions of the Community Planning Act, Chapter C-13, R.S.N.B. 1973 as amended, at its open session meeting held pn the 10`~ day of April 2006 gave third reading... to the redesignation and rezoning of lalnds located at 336 Westmorland Road, Saint John,: N.B. now having PIDs 55183222, 00304535, 55182455, 55182448, 55182463, 55183859, SS183495, 55101166, 55101158, 55190037 and 55186001 ("East Point Shopping Centre"); arid:. WHEREAS the parties hereto et al entered .into axi Agreement dated September 16, 2006 pursuant to Section 39 of the Community Planning Act, hereinafter the Section 39 Agreement, which Agreement is recorded in the`Land Titles Office for Saint John County on September 19, 2006 as Nb: 22773429, and which provided inter alia for the City's contribution towazd East Point's'costin constructing Retail Drive, a public street; and WHEREAS East Point has requested. a grant from the City to assist with the cost of constructing various infrastructure components within the East Point Shopping Centre; and WHEREAS the City,has considered the aforesaid request and is of the view that such a grant fior the puzpose described in the immediately preceding recital would assist with the development o~the municipality; NOW THEREFORE THIS AGREEMENT WTTNESSETH that in consideration of the mutu~l covenants contained herein as well as other good and valuable consideration, the receipt .and adequacy of which is hereby acknowledged, the parties hereto agree as follows: 1. (1) The City shall, subject to subsection (2) hereof, make a grant in the amount of $950,Og0.00 to East Point within thirty (30) days immediately following the written certification by the City's Building Inspector that at least 90% of the structural steel has beep erected with respect to the construction within the East Point Shopping Centre, of a retail building having a floor area of at least 135,000 square feet in the event that a building permit therefor has been applied for and issued to an internationally recognized big box retailer, so-called. (2) The grant described in subsection (1) hereof is made upon condition that should building permits not be issued between the date of this agreement and April 1, 2011 for the construction within East Point Shopping Centre of retail buildings having a combined floor area equal to or greater than the difference between 231,000 square feet and the actual floor azea measured in square feet of the building described in subsection (1) hereof as confirmed by the City's Building Inspector, then East Point shall pay to the City not later than April 30, 2011 an amount being the product of $4.11 multiplied by the difference between 231,000 and the total floor area measured in square feet of retail buildings within the East Point Shopping Centre for which building permits have been issued between the date hereof and April 1, 2011. -2- 2. The City shall in the event that the grant contemplated by Section 1 hereof is made to East Point, and within thirty (30) days immediately following any payment being made to the City by East Point pursuant to Section 26 of the Section 39 Agreement, and as often as that might happen, make a grant to East Point of an equivalent amount of such payment. 3. East Point hereby expressly acknowledges and agrees that the maximum amount payable by the City to East Point pursuant to the Section 39 Agreement is $3.5 Million after taking into account that portion of HST that is recoverable by the City. 4. All notices and approvals required or permitted by this Agreement shall be in writing and delivered personally or by courier or sent by telecopier to each of the parties at their respective New Brunswick addresses as follows: (a) In the case of the City at: The City of Saint John $s' Floor, City Hall, 15 Market Square P.0. Box 1971 Saint John, NB E2L 4L1 Attention: Elizabeth Gormley Common Clerk Fax Number: 506-674-4214 (b) In the case of the Developer at: 479 Rothesay Avenue Saint John, NB E2L 407 Fax Number 506-634-2236 with a copy to Cox & Palmer Suite 1500, One Brunswick Square Saint John, N.B. E2L 4H8 Attention: William H. Teed, Q.C. Fax Number: 506-632-8809 or at such other address or fax number of which the addressee may from time to time have ngtified the addressor. A notice shall be deemed to have been sent and received on the day it is delivered personally or by courier or on the day on which transmission is confirmed, if telecopied. If such day is not a Business Day or if the notice is received after ordinary office hours (time of place of receipt), the notice shall be deemed to have been sent and received on the next Business Day. 5. This agreement constitutes the entire agreement among the parties with respect to the matters herein and supersedes all prior or collateral agreements and understandings, whether oral or written, between the parties or their respective representatives. This agreement shall not be modified, amended or assigned except with the consent in writing of the parties hereto. 6. This Agreement shall be construed and interpreted in accordance with the laws of the Province of New Brunswick. 7. This agreement shall enure to the benefit of and be binding upon the parties hereto their successors and assigns respectively. -3- IN WITNESS WHEREOF the parties hereto have duly executed these presents the day and year first above written, SIGNED, SEALED & DELNERED ) EAST POINT INC. In the presence of: ) Per: Troy Northrup, President THE CITY OF SAINT JOHN N.M. McFarlane, Mayor Elizabeth Gormley, Common Clerk Common Council Resolution: April , 2008. Form 45 AFFIDAVIT OF CORPORATE EXECUTION Land Titles Act, S.N.B. 1981, c.L-1.1, s.55 Deponent: Troy D. Northrup 477 Rothesay Avenue Saint John, NB E2L 4G7 Office Held by Deponent: President Corporation: East Point Inc. Place of Execution: Saint John, New Brunswick Date of Execution: April , 2008 I, Troy D. Northrup, the deponent, make oath and say: 1. That I hold the office specified above in the corporation specified above, and am authorized to make this affidavit and have personal knowledge of the matters hereinafter deposed to; 2. That the attached instrument was executed by me as the officer duly authorized to execute the instrument on behalf of the corporation; 3. That the seal of the corporation was affixed to the instrument by order of the Board of Directors of the corporation; 4. That the instrument was executed at the place and on the date specified above; 5. That the ownership of a shaze of the corporation does not entitle the owner thereof to occupy the parcel described in the attached instrument as a marital home. SWORN TO at Saint John, in the County of Saint John and ) Province of New Brunswick, on ) the day of April, 2008. ) BEFORE ME: ) William H. Teed, Q.C. ) A Commissioner of Oaths ) Being a Solicitor ) Troy D. Northrup Form 45 AFFIDAVIT OF CORPORATE EXECUTION Land Titles Act, S.N.B. 1981, c.L-1.1, s.55 Deponent: Elizabeth Gormley City of Saint John 15 Market Square PO Box 1971 Saint John, NB E2L 4L1 Office Held by Deponent: Common Clerk Corporation: Other Officer who Executed the Instrument: Office Held by other Officer who Executed the Instrument: Place of Execution: Date of Execution: The City of Saint John N. M. McFarlane City of Saint John 15 Market Squaze PO Box 1971 Saint John, NB E2L 4L1 Mayor Saint John, New Brunswick April , 2008 I, Elizabeth Gormley, the deponent, make oath and say: 1. That I hold the office specified above in the corporation specified above, and am authorized to make this affidavit and have personal knowledge of the matters hereinafter deposed to; 2. That the attached instrument was executed by me and the other officer specified above, as the officers duly authorized to execute the instrument on behalf of the corpgration; 3. That the seal of the corporation was affixed to the instrument by order of the Common Council of The City of Saint John; 4. That the instrument was executed at the place and on the date specified above; 5. That the corporation has no shareholders. SWORN TO at Saint John, in the County of Saint John and Province of New Brunswick, on the day of April, 2008. BEFORE ME.: Elizabeth A. Gormley Lynda D. Farrell A Commissioner of Oaths Being a Solicitor ~~~ Recommendation That Common Council approve the acquisition of PID Number 37754, 37788 and 37796 from 603887 NB Ltd. for the total purchase price of $820,000. as per the conditions set out in the submitted letter. Sherwood ` Flanagan BARRISTERS SOLICITORS ~ NOTARIES April 24, 2008 VIA E-MAIL City of Saint John 15 Market Square Saint John, New Brunswick Attention: Terry Totten Dear Mr. Totten: Re: City of Saint John p/f 6038$7 N.B. Ltd. Further to the above matter and your correspondence of February 14, 2008 and April 16, 20D8, we are writing to formally accept the City's offer to Purchase the properties as PID 37754, 37788 & 37796 for the amount of $820,000.00 with the following conditions: 1. 20% deposit payable upon execution of the Agreement; 2. approval of Common Council; 3. Vacant possession with a closing date of on or before July 31, 2008; 4. 603887 N.B. Ltd can recover from the properties shrubs etc related to the landscaping improvements and fixtures etc~~•from the interior of the properties prior to closing; and 5. The Tenants of 10 Peel Street being permit#ed to keep signage indicating their new location on 10 Peel Street as long as the building stands; Please forward -the Agreement of Purchase and Sale for execution at your earliest opportunity. Yours very truly, MEF:jhk denotes Pmfeeelons! CorpoiaCOn SHERWOOD & FLANAGAN :'Yl • ~t,.~.t,~,-~ ~( (.tit-u /~~ Li'/~ Mary-Eileen Flanagan* •. U :.. ..,_, ~ ~ /~ ~. 10 Peel Street ~ Salnt Jahn ~ New Brunswick ~ E2L 3G9 • Tel.• 506.634:61 • Fax: 506.634.0456