$17M hotel to be built beside Moncton's new downtown centre

Monctoncouncil could barelycontain its excitement whileapproving the $3 million sale of a piece of prime downtown real estate to the Corey Craig Group on Monday night.

The land, which iscurrently used as a parking lot for people working on the DowntownEventCentre, will be a 120-room Hyatt Hotel, costing about$17 million.

Craig O'Neill,president and CEO of Corey Craig Group,said the purchase has been in the works for about two years.

• Moncton still Tim Hortons capital of Canada

"Construction is going to start in the spring of 2018, with an18-month window so we shouldbe able to turn that around by early 2020."

O'Neill owns37 TimHortonsrestaurantsacross southeastern New Brunswick. His company also owns Wendy's outlets and the Holiday Inn Express, near the GreaterMonctonRomoLeBlancInternational Airport.

A round of applause rang out through council chambers as the motion to sell the land was approved.

O'Neill's proposal to buy the land,was the only one submitted to council. ButMarc Landry, a city manager,said the offer is within the parametersof what the city was looking for.

"The standards were very high in this process," said Landry

According to Landry, negotiations took place between June and November and "the price range was achieved" with the$3 millionoffer.

In 2016, then city manager JacquesDub,estimated the landwasworth $3.5million. It was also part of the parking lot for the formerHighfieldSquare.

City is 'thrilled'

Councillorscouldn't hold back their enthusiasm at the done deal.

The profits from the sale are also included in the construction budget of the well-under-way downtown centre.

Mayor Dawn Arnold thanked the developer and said the city is "thrilled with this."

Her commentsechoed many other councillors'sentiments, including Coun. Blair Lawrence, who thanked O'Neillfor having "faith in the city."

The hotel will have a pool, retail space, a restaurant and 142 parking spaces.

Rice Contracting Ltd. ofMonctonwill build the structure andArchitects Four Limited,are providingthe planning and design work.

From the beginning of the design process, council dictated the nearly 9,000 seat centre wouldnot have a designated parking lot.

In the past, city staff have done studies determiningthe 4,000 available parkingspaces, alongsidethe transit system, will be enough to accommodatepatrons.

But some downtown business owners say otherwiseand worry there won't be any space left when an event is happening at the centre.

The downtown centre is scheduled to de finished in September of 2018.