FREDERICTON (GNB) – The provincial government has announced that it has selected Centennial Heritage Properties Inc. for the redevelopment of the Centennial Building property. It is estimated that the company will invest more than $48 million dollars to complete the development and that the project will create more than 450 jobs and contribute to economic spin-offs for the local economy in Fredericton.

“This is a much better deal for taxpayers,” said Premier Blaine Higgs. “The previous proposal to create additional office space for government was simply not needed. I am pleased to announce that the province will sell the property for $4 million. This property will help attract further development in the downtown area. Our government is committed to doing what is best for the taxpayers for this province and we will continue to do that moving forward.”

Previously, $76 million had been budgeted for the redevelopment of the building. Entering into a sales agreement with a private developer will save New Brunswick taxpayers about $60 million in further capital expenditures.

Once completed, it is estimated that the property will generate about $600,000 a year in property taxes for the City of Fredericton and roughly $360,000 a year for the provincial government. Additionally, the province is expected to receive one-time tax revenue of between $4 million and $5 million during construction of the two phases.

The successful proponent of the request for proposals, Centennial Heritage Properties Inc., are planning a two-phased approach for the building which will include 22,300 sq. metres (240,000 sq. ft.) of residential space and 2,790 sq. metres (43,000 sq. ft.) for hotel and restaurant space.

The developer’s plan will preserve and maintain many of the historically significant elements of the interior and exterior features of the building, including original artwork which will be on loan from the New Brunswick Art Bank.