Here’s a quick summary about what’s going to happen to the train station. First off, here’s a rendering:


(borrowed from the press release)

They will be tearing down the back part of the station and replacing it with a single story 10,000 sqft liquor store which will be connected to the train station. Some might argue that they should have built something taller there, but there is still a lot of land available to be developed (the green):


The best news for tax payers is that it appears that JD Irving will be paying for the whole thing. The reality is that ANBL will be paying for the whole thing over 20 years.

This article from the CBC details the financial aspect and says that the rent will be $23.50/sqft/year with a 20 year lease. We’ll assume that $15 will be the base rent with $8.50 to be going to operating costs such as taxes and maintenance:

(13425sqft x $15 x 20yrs) = $4,027,500.

As the new section of the building appears to be a cheaply built square box, we’ll estimate it’s construction costs to be $750,000. So for a cost of $2,750,000 (assuming the previously quoted amount of $2M to fix the train station), they’ll get a total profit of:

($4,027,500 – $2,750,000) = $1,277,500

Unless my figures are drastically wrong, JD Irving isn’t doing this for charity.

In my previous calculations, I estimated (but didn’t explicitly say) that the rent would be around $16/sqft giving a net rent of $8. Unless someone leaks a copy of the lease, everything is just speculation. I also think that the $2M restoration figure may be a little inflated, it will probably cost a lot less. Don’t forget that ANBL will still have to pay for all of the interior in both parts of the building as well as heat & lights and probably snowploughing and lawn mowing and other maintenance. In the end, it’s a sweet deal for JDI.