Two months after the closure of two temporary facilities, Moncton will soon be home to a brand new homeless shelter.

“With the closure of the temporary shelter we saw a vacuum of people needing shelter and housing,” said Jean Dube, executive director for the House of Nazareth.

It's a $775,000 project funded by all levels of government -- one that's been in the works ever since two temporary shelters were forced to close their doors April 1.

David Totten has been staying at the House of Nazareth.

“I was actually really happy to hear, because they got the Harvest House on High Street and the House of Nazareth here, but they only bed so many people,” Totten said.

It will accommodate 130 people.

While it's good news for some, it's also raised some concern from nearby businesses.

“We want to make sure those people get the help that they need,” said restaurant owner James Boushel.“We do see it as a little short-sighted; we're dangling a tavern and alcohol directly across the street from a very vulnerable population.”

Dube doesn’t blame them.

“If I was in business, I’d be the same way,” he said.

With his tavern just steps away, Boushel says he wishes he could have been more involved in the decision making.

“We had tried to get in front of this to try to be on the same team, be involved, and what's good for everybody?” he said. “This is something that we want to see work. This is great for the community, but everybody's got to be looked after.”

He says having an entrance out back versus directly in front of the tavern could have been a small adjustment.

The province's social development minister says the chosen location was one that was familiar for many.

“The fact of the matter is that right next door, is the mental health clinic,” said Dorothy Shephard, New Brunswick’s Minister of Social Development. “Many of the citizens who would be using this service have been coming to this community for a very long time.”

Dube says he understands the concerns, but that neighbouring businesses should not worry.

“They're going to see on Albert Street exactly what they see here,” Dube said. “We have a good track record with the city, not many people call for noise or people on the street.”

Part of the shelter will open in August.

It's expected to be fully operational this fall.

With files from CTV Atlantic’s Kate Walker.