Fredericton agrees to fill gap in Cross Town Trail by leasing land for $30K a year

A disjointed Fredericton trail is set to have another one of its gaps filled, but it will come at a cost to the city and won't be guaranteed beyond 20 years.

Councillors agreed on Monday to lease a 420-square-metre piece of property along Westmorland Street at a cost of $2,500 per month for the next 10 years as the city works to complete the Cross Town Trail.

The city will have the option to renew its lease with Bella Properties for another 10 years once it expires, and the company will be obligated to offer the land to the city first if it were to sell it.

Fredericton residents have complained for years about the disjointed nature of the Cross Town Trail, which forces users onto the sidewalk or onto the road if on a bicycle.

Efforts by the city to finish the trail picked up steam this year, with work to complete a western section between Smythe Street and the corner of Northumberland and Argyle.

Some councillors opposed deal

The lease agreed to on Monday gives the city the chance to fill one of the last remaining gaps.

But not everyone around the council table agreed with the arrangement.

"My vote against it came out of just concerns that this option would be not as certain an option for what the city is investing, in terms of the actual trail construction and maintenance," said Ward 1 Coun. Margo Sheppard, one of three councillors who voted against it.

"And so I just felt it was, it was not ideal."

Ward 10 Coun. Cassandra LeBlanc, whose ward covers the Cross Town Trail, also voted against the deal, alongside Coun. Jason Lejeune.

Sheppard said while the lease gives the city purchasing priority over other buyers if Bella Properties does sell it, there's no guarantee that will happen within the lease's lifetime.

That means the city could invest thousands in building a section of trail on the property, only to have Bella Properties choose not to renew the lease after 20 years.

The lease also stipulates the monthly cost will be increased to match inflation after the fifth year, and Bella Properties will be able to bill the city up to $10,000 annually for snow clearing costs.

Without factoring in inflation, the agreement could see the city paying Bella Properties at least $800,000 over the potential 20-year life of the lease, considering the city doesn't renew for a lower price.

"It's a pretty favourable deal for the landowner," said Sheppard, adding she'd prefer if the city bought the property instead.