Expropriation underway for second cruise ship berth

The process of expropriating the land on which the Cape Breton Regional Municipality intends to build a second cruise ship berth is underway.

In an email, Jillian Moore, a spokesperson for the CBRM, indicated that the expropriation of the land has started and will be completed before the contract is awarded for construction. Council had earlier passed a motion to negotiate with the property’s owner for the land and to proceed with expropriation if necessary.

The tender for the second berth contract is still open and not due to close until April 26.

The site that has been identified as the preferred location for the second berth is a 6.8-hectacre property currently owned by North Sydney businessman Jerry Nickerson, the former Sydney Engineering and Dry Dock property. It is located immediately to the north of the current terminal.

The CBRM has been in negotiations with Nickerson for the land — they have reportedly budgeted $2 million while one report indicated Nickerson wanted $6 million.

Moore explained that the process for expropriation involved CBRM filing the expropriation documents with the Registrar of Deeds, which she said was completed and is where the process currently lies. Those documents were filed with the registrar June 9.

The province’s Expropriation Act states that municipality then has 90 days to give notice to the land owner, with an offer of compensation. If the land owner is not in agreement, they can give notice to have the matter heard by the Nova Scotia Utility and Review Board.

“The expropriating authority shall base its offer of compensation made … upon a report appraising the market value of the lands being taken and damages for injurious affection, and shall serve a copy of the appraisal report upon the owner at the time the offer is made,” the act states.

The act also states that the compensation payable to the owner for lands expropriated shall be the aggregate of the market value of the land; the reasonable costs, expenses and losses experienced by the owner; damages for injurious affection; and the value to the owner of any special economic advantage arising out of or incidental to the actual occupation of the land.

The terminal is to be operational by spring 2019. The federal, provincial and municipal governments are equally funding the $20-million project, with the CBRM responsible for any possible cost overruns.

The Nickerson property is known to have some contamination related to its former industrial uses. The Cape Breton Post made an application under the Freedom of Information and Protection of Privacy Act for an environmental assessment, which has been referred to in a consultant’s report on the feasibility of the project and to which Mayor Cecil Clarke has made reference in interviews. That request was denied by the CBRM, which cited several sections of the Municipal Government Act in respect to confidential information and solicitor-client privilege.

Last August the Post filed a request for a review of that decision by the province’s review officer but that office can’t order the CBRM to release the record and the review process can take 12-18 months.

The second berth tender was originally due to close March 29.