Oct. 23, 2008
MONCTON (CNB) - The development firm of CitiGroup Properties of Dartmouth, N.S., has been selected as the preferred proponent to build the new $50-million Moncton courthouse under a public-private-partnership (P3) with the Province of New Brunswick.
Supply and Services Minister Jack Keir made the announcement today. CitiGroup Properties is one of the largest real estate management services companies in Atlantic Canada.
"I am very pleased to announce that CitiGroup Properties has been selected as the preferred proponent for this important infrastructure project for the Moncton region," Keir said. "The new, state-of-the-art courthouse will transform downtown Moncton, stimulate other growth and development, and help to create a more self-sufficient province."
Keir emphasized a final agreement with CitiGroup Properties will be negotiated over the next 30 days. Once the agreement is in place, construction of the courthouse will begin at the fromer Beaver Lumber site. Completion is scheduled for the fall of 2010.
"We have reached a milestone in the procurement process," Keir said. "We know whom we want to be our partner and where the courthouse will be built. The next step is to get a formal lease agreement with CitiGroup Properties to cement the deal."
Four development firms were short listed to participate in the request for proposal (RFP) process: Ashford Investments Inc. of Moncton; Bore Park Place Inc. of Moncton; Huntingdon Real Estate Investment of Winnipeg, Man.; and CitiGroup Properties of Dartmouth, N.S.
"This is a positive step forward towards a new justice complex that will bring all court activities into a state-of-the-art facility for those working in our justice system as well as the general public," said T. J. Burke, minister of justice and consumer affairs.
Submissions for the RFP went through an extensive evaluation process involving several independent committees. The names of the four developers were kept anonymous as their proposals were examined, evaluated and scored.
The developers were required to submit proposals on how their respective P3 proposals would work. They had to show how the project would be delivered in terms of time frame; construction methods and management; quality assurance; management of the operations; maintenance of the facility; financing arrangements, including operating and maintenance costs over the life of the building; and benefits to the province.
"It has been an extremely thorough and fair process," Keir said. "We have been impressed with the level of interest and the competitiveness of developers."
The P3 process transfers to the private sector the risks associated with financing and building the courthouse as well as the responsibility and cost of maintenance for the long-term.
In establishing the partnership with the province, CitiGroup Properties must be able to construct, finance, operate and maintain the complex during the next 30 years. After that, the province will assume ownership.
The government was open to proposals to build the new courthouse at the former Beaver Lumber property in downtown Moncton or at other acceptable alternative sites in the city's downtown. The province said it would not identify the courthouse location until it selected a private-sector partner.
Four of nine potential developers that qualified under the expressions of interest step were invited to participate in the RFP.
The 11,970-sq. m (133,000 sq. foot) courthouse will house 15 courtrooms and court staff as well as sheriff services; victim services; probation services; family support services including mediation; Crown prosecutors; and a law library. There will be 188 parking spaces on site, including 84 in an underground parking garage.
MEDIA CONTACTS: Judy Cole, communications, Department of Supply and Services, 506-457-7903; Valerie Kilfoil, communications, Department of Justice and Consumer Affairs, 506-453-6543.