OFF THE WIRE
dailygleaner.canadaeast.com
Three for the price of one is not a bad deal.
That's what the City of Fredericton got when it voted this week to buy the North Star Sports Bar Pub and Eatery for half a million dollars.
First, it got 1.5 acres of city-serviced land that can be sold to a developer for construction of an apartment complex or condominiums.
That $500,000 investment has the potential to produce a lot of revenue for the city. It's not just the sale of the land, but the property tax revenue generated each year by future residential development that has the city interested. That's steady income.
The bar's location on Clark Street is just off Union, on a bus route and close to stores and services. It would be a welcome addition to the neighbourhood, which has another high-end residential development nearby.
Second, the city, in buying the bar, gets rid of an eyesore and thorn in its side. The city and the bar have a history. It was unclear language in city rules that allowed the bar to become a strip club. The city fought back and lost in court. So this is a bit of a late win for the municipality.
The strip club attracted a certain crowd that, in turn, attracted the police, and the city received numerous complaints about the club over the years.
So score one for the city. In buying the property, they rid themselves of a business that has been the source of a lot of contention.
Third, police had provided council with information that motorcycle gang the Hell's Angels had shown interest in buying the bar and setting up shop here. If you thought a strip bar in your neighbourhood - or your city - was bad, well, that's nothing compared to what it could have been - the headquarters of what is probably the most feared criminal group in the country.
Three for one - it's a good deal, and we believe the city made the right choice in taking that deal.
Not everyone does. Two councillors voted against it, saying the city overpaid and has no concrete plans for the land.
"Where do we draw the line on this? $500,000? To my knowledge that thing is overpriced by about $150,000," said Coun. David Kelly. "Personally, I would rather leave that up to a private developer. They should buy the property."
He and Coun. Marilyn Kerton have a good point. The city could just let a developer buy the property and stay out of the whole thing.
So why did they buy the property? Did the opportunity to finish some unfinished business from the court case sway them? Is it the fear of the Hell's Angels coming to town?
We don't believe the city should make a habit of buying up property in the hopes of reselling it later for development. That's a developer's job.
In this case, however, perhaps there are special circumstances. All things considered, we believe the city made the right decision to buy - and demolish - the North Star Sports Bar Pub and Eatery.
