Fredericton’s Urgent Expropriation Plan: Businesses Face Eviction

UPDATE: The City of Fredericton has just confirmed its decision to expropriate the Exhibition Grounds, threatening the future of several businesses and the New Brunswick Exhibition. Legal experts say the outcome is uncertain, with a Halifax-based lawyer describing the case as a “toss-up.”

The city announced its expropriation plan during a council meeting on September 22, and the official notice was published on October 9. Interested parties now have until November 9 to object to the expropriation. Robert Pineo, a lawyer specializing in expropriation, emphasized that both the city and the exhibition group have valid public purposes for the land, making the case particularly complex.

If the expropriation succeeds, the New Brunswick Exhibition, which has been leasing the land for $1 per year since 1948, along with businesses like Tim Hortons and William’s Seafood, would be forced to vacate. The city plans to repurpose the land for housing, a middle school, and community spaces, but Pineo argues that the existing exhibition could also serve a significant public purpose.

The Exhibition Grounds have a rich history, serving as a community gathering place for nearly 200 years. “It could be an interesting argument that the status quo is a valid public purpose,” said Pineo, highlighting the unique nature of this case.

Most expropriation cases involve private landowners, but this scenario sees the city as the landowner seeking to expropriate leasehold interests. As a result, multiple businesses operating on the site face uncertainty about their futures. The city has stated that existing tenants will remain until their current leases expire, which for Tim Hortons and William’s Seafood is 2028, and for Feeds’n Needs, 2026.

Complicating matters, the city is also embroiled in a legal dispute with the exhibition over public safety concerns regarding a grandstand. The exhibition has already incurred fines since failing to meet a compliance deadline on October 24.

Pineo highlighted the uniqueness of this expropriation case, likening it to the complexities of expropriating a shopping mall with various businesses. He noted, “It’s rare that an expropriation takes place of a property that has different commercial activities taking place on it.”

As the clock ticks down to the November 9 objection deadline, those affected, including horse owners at the Exhibition Grounds, have the right to challenge the city’s actions. If objections are filed, a public hearing must occur within 30 days, with the potential for any party to appeal the decision to the New Brunswick Court of Appeal.

The city has committed to compensating the New Brunswick Exhibition $3.45 million for the remaining six years of its lease, and it remains open to negotiating new arrangements for leasing part of the land.

Pineo remarked, “The right to challenge extends beyond the exhibition and organizations on the lot,” indicating a widespread impact on the community.

This developing situation has significant implications for local businesses and community services. As residents await further updates, the urgency surrounding the expropriation of the Exhibition Grounds continues to grow, making it a pivotal moment for Fredericton.