Jean-Philippe Thibault, LJI Journalist

GASPÉ – An agreement was officially signed between the Town of Gaspé and Gestion Bourgade for the creation of the Faubourg du Ruisseau eco-district, described by mayor Daniel Côté as “the largest residential and commercial development in the history of the Town of Gaspé.”
The project was publicly unveiled on May 27. However, the agreement, which consists of some 700 pages of legal documents, had still not been initialed by both parties, a step that has now been completed.

With this, the Gaspé town council confirms an investment of $4.4 million through a loan by-law, for a total estimated value of $8.8 million. The Town and Gestion Bourgade are thus two 50% partners.
The municipal share will be used, in particular, for the construction of streets, water and sewer systems, as well as pedestrian and cycling lanes. It should be noted that the borrowing by-law will require a citizen approval process. Afterwards, it will require Quebec’s approval as well before it comes into effect.

“This is a historic moment and a crucial step for the future of Gaspé. The Faubourg du Ruisseau is not just a development project; it’s the cornerstone of our growth for years to come,” says Daniel Côté.

The municipalization of the streets could be completed by Christmas if all goes as planned. Work began this past spring. One entrance to the eco-neighbourhood will be located on road 198 near the RCMP building; another will connect to Frémont Street, near the Esso service station.

Potential for 320 housing units

In May, during the presentation of the agreement in principle, the developer explained that up to 22 lots could be sold. The goal is to build housing and local businesses. The total potential is 320 new housing units. The notary firm Simard Côté Monette has already indicated its intention to acquire the first lot.

Phase 1 of the project includes the development of three new streets totaling 900 metres in length. Gestion Bourgade will not build the new buildings itself, but will handle the resale of the lots.
The company has acquired a huge parcel of land measuring over 1 million square metres. Other phases could be planned to further expand the area. A re-evaluation will be conducted in 2027.
“Our goal is to create more than just a residential neighbourhood: we want to build a sustainable living environment, integrated into its surroundings and focused on the well-being of its residents. This project demonstrates our commitment to developing innovative and resilient communities for future generations,” explains Sophie Bourdages, vice-president of projects and administration at Gestion Bourgade.

The Town of Gaspé has already indicated that it intends to purchase a few lots that it can subsequently transfer or resell. It has calculated that, ultimately, property tax revenues could represent new revenues of $800,000 to $850,000 annually.

The apartment vacancy rate in Gaspé was 0.3% last year, according to the Canada Mortgage and Housing Corporation. The break-even rate is between 1% and 3%. A 2022 study by La Côte-de-Gaspé indicated that the MRC would need to build 551 new housing units and provide 421 adapted housing units for seniors by 2026.

Assuming 320 housing units are built on the land, the first phase of the project could represent a value of $65 million in new construction value.

The chosen location is also one of the few that can accommodate new homes connected to the water and sewer systems without too many problems.

“It’s a strategic location,” Daniel Côté explained in May. “The only area where we had a possibility of expansion in terms of the water and sewer systems was here around the town hall. We have space for our pipes, our treatment plant, and our drinking water wells. We’re also close to services.”