Fredericton, N.B. Ex headed to arbitration over expropriation compensation

The battle over what the city should pay in the expropriation process for the Fredericton Exhibition Grounds is now headed to court. The city has been leasing part of the property to the NBX, but after expropriation took place earlier this year, the city now has full control of the property. Part of the lot has been sold to the province for a new middle school. Construction is expected to start in the spring. Council voted in May to offer 4.1 million dollars to NBX as part of the expropriation process, but now the city says they haven't been able to reach an agreement and council has approved moving to arbitration, which means letting the courts decide what a fair amount would be. The city did submit what was identified as its final settlement proposal and despite respectful and constructive discussions between the parties, a settlement agreement has not been reached. Hart says the city can withdraw from arbitration at any time if the matter can be reached outside of court. Due to court timelines, he says it could take anywhere from six to 18 months for the matter to be settled. I want to emphasize that administration is not recommending this step because discussions have ended, nor should arbitration be viewed as an escalation. Rather, arbitration is a structured process that council previously contemplated and provides a clear path forward for resolving outstanding issues while preserving the opportunity for continued dialogue and a negotiated resolution should still one be able to be achieved. CBC reached out to the NBX leadership for an interview about the city moving to arbitration but did not receive a response by the provided deadline.