Saint John city council has given its first approvals for a proposed residential development consisting of up to 500 units in Millidgeville.
Somerset Investments Ltd. wants to construct between five and six buildings on the site on Technology Drive.
A municipal plan amendment is needed to redesignate the site for residential development and the development site must be rezoned to high-rise residential.
The site was designated business park (now known as business park commercial) in 1999. At the time, a business park subdivision with up to 10 large lots for office, commercial and light industrial uses was proposed.
“Despite efforts from the landowner and economic development partners to market the business park, uptake of lands within the business park has not resulted in the market demand that was initially contemplated. Only one building was constructed over the past 20 years, which is currently housing Xerox,” said a staff report.
“Given the lack of commercial demand and the opportunity to adapt the space to respond to the high residential market demand, the proponent is seeking to develop residential uses on the property in addition to maintaining an interest in attracting commercial development.”
No one spoke in opposition to the proposed development during a public hearing on Tuesday night.
Melanie Dowd-Martell, who represents Somerset Investments, was on hand to answer questions from councillors.
Coun. Brent Harris questioned what the target market would be for the new units. Dowd-Martell said they have found there is high demand in the area for those looking to downsize.
“The first target market would absolutely be older [people], probably retired, looking to sell their homes and move into something more manageable,” she said.
Dowd-Martell said the units would also suit young professionals given their close proximity to the Saint John Regional Hospital and the university.
When asked about the target rent prices, she said it is too early to say as construction budgets have not been completed at this point.
“I think it’s going to be target market rent,” said Dowd-Martell.
About a dozen area residents attended an open house at the Royal Kennebecasis Yacht Club in August to learn more about the project.
Dowd-Martell said they were able to satisfy most of the concerns raised by residents about the development.
“A lot of the concerns were around construction timelines, just wanted to make sure it wasn’t going to go on forever, and so we essentially outlined our schedule to them,” she said.
“Some were concerned about blasting. There is no blasting required. The site is cleared and ready.”
Once the final approvals are received, construction on the first building is anticipated to start next spring. The remaining buildings would be constructed as demand warrants.
Envision Saint John, the region’s economic growth agency, said it is estimated that the current proposal represents “in the magnitude of over $150 million in construction activity.”
Jeff Cyr, director of strategic projects and real estate, said each phase is anticipated to generate between $150,000 and $250,000 in property tax revenue.
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