Annual Report - 0104.nccdn.net0104.nccdn.net/1_5/337/2e3/2c2/2011-Annual-Rerport.pdf · Annual Report 2011 Waterfront | 3 Annual Report 20 11 T he Saint John Development Corporation

AnnualReport

Saint John Waterfront

Annual Report

2011

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”“When we coordinate our efforts with the efforts of others, we speed the way to our goals. cooperation builds success

- Napoleon Hill

Annual Report 2011 Waterfront | 1

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The Saint John Development Corporation

Saint John’s Waterfront and Inner Harbour, where the mighty Saint John River meets the Bay of Fundy, have contributed significantly to the city’s heritage and growth. The Inner Harbour, an area of cultural, historic, natural and economic resources, presents development opportunities that capitalize on existing assets and charts a new course for the city.

Planning, coordinating, managing, balancing sustainability with cultural and heritage opportunities while remaining connected to our vision are all important in waterfront development.

Our goal is high quality development, focused economic development and creating opportunities for the best use of the spaces we oversee with an emphasis on maximizing land-use potential; always with a view to implement and increase open spaces for public enjoyment and continued tax base contribu-tion. It is not always about the quickest development option; it is about finding the best mix of options, engaging the public and following our guiding principles.

2 | Waterfront Annual Report 2011

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About Us

BOARD OF DIRECTORS

MANAGEMENT

The Saint John Development Corporation was incorporated in 1980 with the primary objective of coordinating the development of the Market Square Complex and to represent the ongoing interests of the Federal, Provincial, and Municipal Government in this development. These responsibilities remain in force today.

The mandate of the Corporation as defined in its Act of Incorporation is considerably broader and includes a strong economic direction regarding the “overall development, co-ordination, and advancement of the commercial, residential, recreational, cultural, social, economic welfare of the City’s Centre District.” Past examples of this include the development of Harbour Station, Imperial Theatre, the restoration of the City Market, and development of the inside pedway connection. Currently the organization is concentrating on development of Fundy Quay (former Canadian Coast Guard site)

Kent MacIntyreGeneral Manager

Daryl WilsonSecretary-Treasurer

Pat Woods

Theresa EllefsenFinancial Administrator

Ivan CourtStephen AlexanderVice-Chairman

Christine FaganPeter Asimakos

Charels SwantonChairman


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The Saint John Development Corporation maintains the freehold ownership of the lands and premises comprising the Market Square

Complex. As Head Lessor to the Hardman Group Limited, the Corporation has a variety of responsibilities, including the lease administration and management of;

• Market Square Parking Garage• Waterfront boardwalk• Residential Courtyard• Small Craft facility

The Corporation is also responsible for the collection of rent associated with Market Square from the Head Lessee (Hardman Group) and the overall enforcement

of the lessee’s covenants in addition to the monitoring and maintenance of the site containment and seawall as well as the review/audit and approval of payments for all common area and utility expenses.

Our Mandate

Market Square

Economic Development

Waterfront Partnership

The vision and mandate for City Central District development is best articulated in The Inner Harbour Land Use Plan. This master plan for development of the Saint John Inner Harbour and Waterfront was introduced in 2003 and was the culmination of over two years worth of work and includes feedback from over 500 stakeholders – local individuals, organizations and committees. The plan defines a strong system of fully connected, high-quality public spaces with strategic implementation plans that form a blueprint for distinctive, superior private/public developments.

Several of the Inner Harbour Land Use Plan initiatives have been implemented along with completed detailed designs for future developments representing increased development activity and long term economic benefits.

In 2001, the Saint John Development Corporation established a special committee to advance and realize the potential development of the Saint John waterfront. This special committee was formed into a partnership with; The City of Saint John, Uptown Saint John, Enterprise Saint John, Saint John Board of Trade, Saint John Port Authority, and the Province of New Brunswick. Together these partners contribute financially to the efforts of waterfront development initiatives.

www.sjwaterfront.com Visit our website


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Message from the Chairman

We are pleased to present the 2011 Annual Report of The Saint John Development Corporation operating as Saint John Waterfront

Development. This report represents the work of our board, our staff, and our many partners during the past year. We remain committed to our objectives: acting as an economic catalyst to rejuvenate and redevelop the city’s waterfront and city central core, investing in projects which enhance the image and brand of the Greater Saint John Region, and promoting and encouraging people to visit, live, and invest in Saint John.

The 2011 year was a great success for Saint John Waterfront Development. New developments continue in the uptown with investments to date estimated to exceed $55 Million. The community is now starting to see evidence of “true growth”, thanks to several highly visible projects which represents over $650 million since 2010. Significant progress has been made on the redevelopment of the Coast Guard Base, now known as Fundy Quay with final acquisition of the lands occurring June 2012.

The development of the city centre core and waterfront is about much more than just growing our tax base, it is about making investments that can be transformational for the community. We are striving to reinforce a positive

and lasting image of this city, to make it attractive and encourage new people to the region. Investments in the City of Saint John are investments in our new brand, they are investments to improve the quality of life for all citizens of Saint John, and they are investments that make a strong statement to the new vision and expectations for this city. We believe, now more than ever, investments in the city centre and waterfront are critical to maintaining a “sense of momentum”.

In closing, on behalf of the Board of Directors, I would like to thank the management and staff for their commitment and support throughout the year and to extend our additional gratitude to all of our partners and stakeholders committed to strong, effective economic growth in the City of Saint John.

Charles SwantonChairmanSJ Development Corp.

Charels Swanton


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Message from the General Manager

Saint John Development Corporation has completed its 31st consecutive year of investing and developing at the water’s edge and city central core. Through

the years the corporation has managed the investment of over 55 million dollars and there is more to come.

Saint John is an incredible waterfront with the potential to evolve as one of the most unique and sought after places to live, work and play in Atlantic Canada. The development of Fundy Quay, Reversing Rapids, refurbishment of Loyalist Plaza, extension of Harbour Passage and Partridge Island development are just a few of the golden opportunities in Saint John’s future waterfront growth.

With direction from a high caliber Board of Directors, the Saint John Waterfront team focuses on waterfront infrastructure development, investment attraction, property management, business development and community use of public waterfront space.

For residents, there are many reasons to be proud of your investment in waterfront development. Developing professional strategic plans and implementing these strategies have been a hallmark of Saint John Waterfront Development’s strength. Core to our work is the constant focus on maximizing public and private contributions for long term sustainable development. We firmly believe, quality economic activity drives future investment.

Like all Port cities around the world, revitalizing the waterfront and creating strategic opportunities for mixed development are key components in spurring economic growth. It’s all about “lifestyle” and people will live and work in cities that offer safe, well-planned neighborhoods, a variety or restaurants and shopping, excellent schools and health care, cultural and entertainment venues, public access spaces, ecological amenities and a host of attributes which encourage population growth and business investments.

Saint John has the necessary ingredients to successfully grow – we’re on the launch pad!

Charles SwantonChairmanSJ Development Corp.

Kent MacIntyreGeneral ManagerSJ Development Corp.

Kent MacIntyre


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In addition to the administration of the leases under the Market Square Central Building Complex head lease (Library and Parking Garage) Saint

John Development Corporation provides operational management support to Vinci Park (formerly Canpark Ltd.) on a weekly basis.

An extensive cost allocation Audit was conducted in conjunction with Deloitte and the Altus Group with the results indicating appropriate administration and reporting of the 496,000 sq. feet of the Market Square Complex. Overall, the cost recovery through new changes and improvements as a result of the analysis have provided a return which has more than paid for the cost of the audit.

As noted in the enclosed financial statements revenues continue to remain relatively steady for the parking garage at Market Square. Hourly and event parking revenue decreased $40,330 in 2011 mainly due to Trade and Convention Centre activity. To mitigate

this decrease, additional monthly rental space was authorized above the targeted 65% capacity. Parking revenues for the year, $1,437,882, have increased slightly ($6,446), however, operational expenses increased $22,841, mainly due to labor costs, resulting in a year-over-year revenue decrease of $16,395 or 1.5%.

Under the Market Square Agreements, the Saint John Development Corporation as Head Lessor, has a variety of responsibilities to protect the City of Saint John under their 66-year performance guarantee, for the term of the lease.

It’s often the things you don’t see that ensure a waterfront is safe and assessable year after year. Maintenance is an ongoing commitment and our staff monitors and maintains the site containment including the steel sheet pile wall along Market Slip, the rock fill berm along Long Wharf slip, repairs beneath the wharves, timber repairs on the boardwalk as well as inspections and upgrades undertaken annually to the cathodic protective systems and epoxy coating.

This year, the cathodic protection

system was inspected and upgraded with the replacement of 2 anode wells along with boardwalk timber replacements and lighting repairs. All of this activity is our reinvestment, on behalf of the City of Saint John, in a asset management plan.

Floating Docks - Small Craft Facility

The Market Square floating dock system is owned by the Saint John Development Corporation and operated on a seasonal basis. From the middle of May to the end of October, this seasonal facility continues to be a major attraction for recreational boaters and tour boat operators. It is the only public facility in the Saint John harbour that provides a safe landing site for small craft boaters while waiting to pass through Reversing Rapids into

the St. John River system It also serves as a valuable asset to the community throughout the tourist cruise ship season – over 450 small craft utilized the facility in 2011.

Appropriate adjustments were made to the gangway in the Spring, due to damage sustained by weather conditions in the Fall of 2010. Upon removal of the floating docks in October 2010, the previous arrangement with the Saint John Port Authority regarding winter storage was not required. The docks were easily and efficiently stored on the adjacent Coast Guard property, now owned by the City of Saint John.

The Year in ReviewMarket Square Administration and The Parking Garahe

Market Slip Site Containment


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The Year in Review

Refreshing the appearance and content of the website to allow for more dynamic interaction and informative discovery included;

• Fundy Quay development information

• Photo gallery

• Up-to-date press releases and media section

• Refined content

Website Enhancements

187,000 PASSENGERS

opportunitysea of

75,000 CREW


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On the Saint John waterfront, Market Square continues to bring high quality, family friendly entertainment and events. Whether on the Boardwalk, Loyalist Plaza, North Market Slip or on select portions of Harbour Passage and Fundy Quay there is a pro-active approach to host traditional favorites and new, unique events.

In 2011, a mix of activity created an on-going atmosphere that brought vibrancy to the waterfront and uptown Saint John generating economic activity and providing the public with unforgettable experiences. In addition to supporting a variety of top events, we work with community groups to provide opportunities for annual fundraising walks, special events, summertime beach volleyball and visiting sailing excursions. Some of the most notable 2011 waterfront events were:

• Loyalist Plaza Artisan Market• World’s Strongest man Competition• Woodsmen Festival Competition• Seven Wonders of Nature Campaign • Canada Day Week celebrations

• Salty Jam Festival• Buskers on the Boardwalk• Hola Fiesta• Saint John Idol• Cruisin’ to the Boardwalk Car Show

• Country Star Competition• New Brunswick Day celebrations• Live Sax Music• Maritime Kitchen Party

The Year in Review – Waterfront Development

Photos here


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Loyalist Plaza – North Market Slip Refurbishment

The Loyalist Plaza and North Market Slip area is the City of Saint John’s most utilized and

best located public space in the City central core. Situated between the Market Square Complex and Fundy Quay (former Canadian Coast Guard site) this waterfront location is earmarked for major redevelopment and destined for a better future.

For years the Loyalist Plaza area has been the centerpiece of activity, particularly summer and fall seasons. Without question, this is the busiest and most used public space on the waterfront. Hotel visitors, cruise ship visitors, markets, concerts, Canada Day, Buskers, cultural events, community and corporate gatherings and much more are happening at this site annually with thousands of people traversing in and around the entire area. It is well known as a social/business meeting place as people utilize all the available aspects (tables, benches, patios, restaurants, volleyball court, boardwalk, grass) to interact and enjoy this incredible waterfront location.

This grand old plaza has seen better days – worn brick pavers, aged and cracked concrete, cobblestone deterioration, mixed lighting, unappealing structures, limited performing stage capacity (many entertainment options are not able to be accommodated), under-utilized and ineffective space and generally a poor layout for high levels of pedestrian traffic. The location is over 30 years old, lacks maximum function capability and essentially is in need of a major rejuvenation.

In the Fall of 2011 the planning and designing process commenced – a Loyalist Plaza Committee was struck and preparations for idea generation through public consultations started. The planning and designing process will take over 16 months with commencement of refurbishment scheduled for 2013-2014.

Toronto Dominion Bank (TD): Ecological-Hubs

In 2009, TD announced a gift of $500,000 to Saint John Waterfront Development over a five year period – 2011 is the 3rd year. This gift was designed to provide for the construction of educational programming sites along the existing Harbour Passage and focused around protecting our environment, in particular our waterfronts and shorelines. In additional, the sites are to demonstrate TD’s core commitment of supporting the environment and children/youth education.

The overlay of a fun and educational theme focused on environmental awareness and science will add a new dynamic to the Harbour Passage experience. The creation of youthful destinations or “ECO HUBS” will allow the surrounding stories related to the

robust ecosystems to come to light.

At any one point along Harbour Passage there is an incredible opportunity to engage our youth in the stories of the environment that surround it. A programmed collection of destination points will give rise to new opportunities for both families and educator’s to bring our youth to Harbour Passage so they can take part in experiential learning from within the environment.

At each destination there is the opportunity to incorporate an ecosystem story and deliver that message in a built form that follows elements of the LEED building program through a fun and engaging design. Several interactive art forms and interpretative signage have been professionally designed and constructed ready for installation upon completion of the Harbour Bridge construction.


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Identified and approved by Common Council in 2010 as a key priority in the Saint John Waterfront Development capital expenditure plan, it was temporarily put on-hold pending a more favorable City financial situation. Both Provincial and Federal Governments fully support the plan and phased implementation, however, without tri-

level funding the project was postponed for 2011.

Reversing Rapids Master Plan

The Saint John Inner Harbour Land Use Plan was launched as a long-term vision for the Saint John Inner Harbour with an implementation time frame stretching out to 2025. This plan provided for a set of design guidelines throughout 8 defined precincts, outlined 28 recommendations and/or projects designed for the purpose of creating new wealth and a rejuvenated city core.

As an integral component to this initiative, the Partridge Island project was identified as one of the priorities in the plan. In addition to the Saint John Inner Harbour Land Use Plan, another more comprehensive master development plan was commissioned by Saint John Waterfront Development providing for a series of phased, unobtrusive improvements to ensure visitor safety, protection and long-term sustainability of the island’s resources and natural features. Essentially, Partridge Island would be enhanced and its history interpreted to reflect its importance as one of Canada’s primary cultural and historical resources.

Saint John Waterfront Development has developed a funding strategy for this project that will be implemented in 2012-2013.

Once Saint John Development Corporation acquired the first phase lands of Fundy Quay an arrangement was struck with the City Parking Commission for temporary parking until construction commences on the site. This has provided the Parking Commission with upwards of 165 new parking spaces and a new source of revenue.

Along the Boardwalk and adjacent to Loyalist Plaza, at a cost of over $30,000, several new tables, benches and garbage receptacles have been installed. These are quality designed benches and tables complete with vandal proof manufacturing and anti-graffiti coating. Users have commented favorably regarding the color, comfort and design.

Partridge Island

Fundy Quay – Temporary Revenue Source

Quality Boardwalk Additions

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Saint John is still an economic powerhouse for New Brunswick. According to Statistics Canada, the average tax filer from Greater Saint John claims

16 per cent more total income than those in the rest of New Brunswick and pays 27 per cent more in income taxes. The average Saint John tax filer pays eight per cent more in employment insurance (EI) premiums but collects 22 per cent less in EI income compared to those living in the rest of the province. Without question, the battle for business investment is tied to the quality of a community’s living environment. Quality health care and education, vibrant arts and culture scene, recreational opportunities, low crime rates, parks, walking trails, public access spaces and other amenities

are not luxuries - they are required assets for a dynamic, growing urban centre.

Saint John needs to be a place where great companies are growing export-focused opportunities and creating high paying jobs. Developing strategically, based on sound planning, will be the key to long term progressive growth and continued economic prosperity.

The City’s new municipal plan supports the development of a strong, diversified, and resilient economy that enhances the quality of life and the quality of the urban environment in the City. The Plan clearly indicates the need for attracting new investment to the City and expanding the population and workforce.

Plan SJ strongly supports the opportunity and ability to work cooperatively with the City’s economic development partners and all stakeholders in the community to project a positive image of the City as a place to live and as a place to do business, to support economic prosperity, create and implement economic development strategies, strengthen the local economy, and enhance quality of life in the community.

Saint John Waterfront Development supports this initiative and fully cooperates with key economic development stakeholders and community organizations dedicated to strategic planning, investment attraction, development readiness and maximizing growth opportunities. Through regular contact with other agencies, Saint John Waterfront Development continually positions itself for increased awareness, positive branding and maximizing economic opportunities.

The Saint John Development Corporation, acting as the agent for the City of Saint John, has been charged with the responsibility of securing the property and managing the re-development of the entire site. Through a purchase and sale agreement of March 2011, between the City of Saint John and the Government of Canada (Department of Fisheries and Oceans) the site will be acquired in two phases – Phase One was completed March 2011 and Phase Two will see the final acquisition of property and assets on June 30, 2012.

While full title to the site will not occur until June 30, 2012, an aggressive search for a new developer/investor has commenced and Saint John Development Corporation anticipates securing a new developer(s) in 2012. This extensive search includes the utilization of an international commercial real estate firm – Cushman & Wakefield.

Connecting with Plan SJ

Fundy Quay Development

Year End Review - Economic Development

New Brunswick needs an ambitious Saint John

future


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As of December 2011, the search for developers/investors has commenced. Negotiations are being finalized with Cushman and Wakefield Atlantic to begin an international recruitment campaign. Cushman and Wakefield is the largest privately owned commercial real estate company in the world with offices in over 230 countries.

Beginning January 2012, a Cushman and Wakefield four-person team, lead by the Halifax Managing Director, who has been working closely with Saint John Development Corporation.

Cruise TerminalThe Saint John Port Authority has announced the much

anticipated 2nd Cruise Terminal Building on Water Street. The project designs are of a two storey building with a roof-top viewing platform for public use. The project is expected to be completed before September 2012. This will be a welcomed addition to the Water Street amenities.

Waterfront Conference

The 1st Annual Waterfront Conference was held in May 2011. Over 100 Greater Saint John CEO’s, VP’s and senior management attendees were exposed to high-profile speakers including Mark Findlay (Ireland), Tim O’Neill (Chief Economist), Cyndi-Rottenberg Walker (Toronto) and Kurt Nagle (USA). Key economic topics along with waterfront initiatives and challenges were presented and discussed.

City of Saint John – Common Council On four separate occasions, Saint John Waterfront

Development met with and updated Common Council regarding development matters. Progress reports of Fundy Quay allowed Mayor and Councillors to be fully informed and provide feedback.

Investments & A Growing Tax BaseSince 2010, over $650 million has been invested in the

City of Saint John of which 20% has been private equity. This is a significant contribution to the local economy and indicative of the strong economic base and future potential for more investment.

The City’s two four-star hotels (Hilton and Delta) have also undergone new makeovers in the Uptown in 2011. The waterfront Hilton Saint John has recently begun an extensive multi-million dollar interior re-design of all guest rooms & suites, hallways, upper & lower lobbies, restaurant, lounge, pool/exercise facilities and meeting space. The Delta Brunswick is also investing several million dollars renovating the exterior and interior of Brunswick Square.

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In 2011 the Corporation managed strategic spending in areas that best advance the overall waterfront development direction as it pertains to the Inner

Harbour Land Use Plan and PlanSJ. As such, investment attraction, development planning and consultation as well as infrastructure assessments were important expenditures in the past year.

Sound financial management of the funds received from the City of Saint John, Province of New Brunswick and Private Enterprise has contributed to the ongoing success of developing and implementing initiatives with long term value. The Corporation ended the year with an operating surplus of $72,075.

Saint John Development Corporation continues to own and manage the Waterfront Boardwalk, Residential Courtyard and Small Craft Facility and on behalf of the City of Saint John, continued oversight

and management of the Market Square Complex and Fundy Quay Development. Moving forward, the Corporation is committed to excellence in waterfront development, prudent financial management and solid business decisions which when coupled with continued stakeholder contributions will provide the means to facilitate this commitment.

The nature and scope of the organization’s capital spending is for the most part phased and integrated to ensure thoughtful planning and public consultation on the transition of waterfront and city central core properties from parking lots and under-utilized areas into exciting places to live, work and play.

Financial Highlights

some financial facts here!!!


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Documents

Annual Report - 0104.nccdn.net0104.nccdn.net/1_5/337/2e3/2c2/2011-Annual-Rerport.pdf · Annual Report 2011 Waterfront | 3 Annual Report 20 11 T he Saint John Development Corporation