Fredericton city council approves 'once in a generation' NBEx redevelopment
Up to 1,200 housing units could be built on the exhibition grounds
Fredericton city council has given final approval to a redevelopment plan that will include some affordable housing for the New Brunswick Exhibition Grounds.
The city and the New Brunswick Provincial Exhibition, known as NBEx, are working together to develop the property, which has agricultural heritage going back 150 years.
The redevelopment plan calls for 800 to 1,200 housing units to be built on the site and promises that 20 per cent of those buildings will be affordable — priced at 10 per cent below market rate.
The plan doesn't contain specifics about what type of housing will be built, or when construction might start. NBEx will still use part of the site for exhibitions.
Fredericton's population is expected to grow to 90,000 over the next 20 years. Coun. Steven Hicks said on Monday night that the city will be facing a "serious housing crisis" in the downtown area in the same period of time.
"This is good planning on behalf of the city, and also provides some stability to the NBEx moving forward," he said.
Coun. Jocelyn Pike, who ultimately supported the plan, raised concerns at a previous council meeting about whether rents 10 per cent below the market rate are actually affordable, especially considering how the market may change in the future when construction takes place.
On Monday night, she said she was still struggling with that.
City planner Ken Forrest said the city wanted to come up with an affordable housing definition that made sense for Fredericton.
The federal government, as well as many other municipalities and provinces, defines affordable housing as being no more than the cost of 30 per cent of the household income.
"The reality in Fredericton is, in fact, if you take a look at those numbers, those rent numbers that would come from that 30 per cent of income, is actually quite a bit higher than 10 per cent below what is kind of the current market rate in Fredericton," Forrest said.
He pointed to a Canada Mortgage and Housing Report about Fredericton's rental market from last October, which said the average rent for a two-bedroom apartment in the city in 2021 was $1,059, up almost $100 from the previous year.
Forrest said 10 per cent below that is a lower number than would come from the average household income calculation, calling the plan's model a tailored, "made for Fredericton" solution that offers more affordability.
"In this case, we view the target that's in the plan as a more ambitious target and more appropriate for Fredericton given the role rent plays as a percentage of income in our community," he said.
Mayor Kate Rogers called the redevelopment, which will transform the 31-acre property on Smythe Street, a "once in a generation" opportunity for Fredericton.
"We're all looking forward to all of the opportunity that it's going to unleash."
Only Coun. Cassandra LeBlanc voted against the plan. She had voted against the plan during its second of three readings, arguing the city could have been more aggressive with its affordability targets.
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