April 7,2016 Mayor and Council City of Saint John Attention: Mayor Mel Norton City of Saint John Your Worship: I am writing to follow up on my letter of February 19,2016 regarding the city's request to repeal the Act to Comply with the Request ofthe City ofSaint John on Taxation ofthe LNG Terminal. Specifically, we have now completed our due diligence regarding the proposed repeal and are preparedto move forward, providedthat the Provinceis assured it is not financially impacted as a result. To ensure that the Province does not bear any portion of the loss of municipal property tax revenue resulting fi-om a reduction ofthe assessment value on these properties, provision will be made whereby the city would repay any amounts paid to the city and not recovered through the property tax system. Please confirm in writing, by April 30^ that Council is aware ofthe potential implications and wants to proceedwith the requestto repeal the Act to Comply with the Request ofthe Cityof Saint John on Taxation ofthe LNG Terminal. Please contact, Rob Kelly, AssistantDeputy Minister for the Local Government Division, should you have any questions. Sincere! Hon. Brian Kenny Minister of Environment and Local Government Marysville Place P. O. Box 6000 Fredericton, NB E3B 5H1