City Council offers lifeline to John Howard Society City Motel project

At a special meeting of Council late today, Council voted to formally propose an offer to the John Howard Society for an amount up to $900,000 toward their project at the City Motel on Regent St.

Under the terms of the offer, the City would acquire a right of first refusal to purchase the property for market value as confirmed by appraisal, less $900,000, should the John Howard Society choose to sell the property in the future. As a founding funding partner in the project’s application to the federal government, the City had previously agreed to provide a one-time contribution of $35,300, plus an annual contribution of $87,861.

The resolution passed by Council also includes the following conditions:

  • The John Howard Society acknowledges that the City of Fredericton shall not provide any financial support in kind or otherwise for operating costs for the City Motel Housing Project other than those already approved.
  • Should the City of Fredericton choose not to exercise its right of first refusal and the property is sold to a third party in the future, $900 000 of the proceeds of sale shall be payable to the City.
  • The John Howard Society acknowledges that in the event additional funding is made available for the project from other sources such that the full $900,000 is not required to fulfill the project capital acquisition and renovation requirements, that the contribution from the City of Fredericton could be reduced accordingly.
  • An agreement be created and executed by both parties to document the relationship among all participating parties to the City Motel Housing Project and that it be brought back to City Council for approval at a future date.