City considers $13 million grant for new hotel at Ottawa airport
City considers $13 million grant for new hotel at Ottawa airport
Ottawa taxpayers could provide a $13 million grant to support the construction of a 180-room hotel at the Ottawa International Airport, as part of a program to support the airport's post-pandemic rebound.
A report for the finance and corporate services committee recommends approving the grant over 25 years under the Ottawa International Airport Community Improvement Plan to support Germain Hotel's proposed development of the $55 million Alt Hotel at the airport.
The proposed hotel would have 180 rooms, a restaurant, meeting rooms and covered pedway connecting the hotel to the airport terminal via the parkade.
Mayor Mark Sutcliffe says he is not a "fan of this kind of financing" to use taxpayers' dollars to support development, but tells CTV News Ottawa he wants to hear from airport staff, councillors and the public on the issue.
Last July, Council approved the Ottawa International Airport Community Improvement Plan (YOW CIP) to provide financial incentives in the form of a grant for companies who develop or redevelop properties in the airport area. The YOW CIP offers a grant to airport tenants of up to 75 per cent of the increase in municipal property taxes directly related to the development each year, up to 25 years, and the grant is only paid after all annual property taxes are paid in full each year.
The goal of the grant is to support the airport's post-pandemic rebound and city-wide economic growth, after the airport saw a significant decline in passenger air travel during the pandemic, city staff say.
The report for the finance and corporate services committee says the Alt Hotel project would result in an increase of $17.436 million in property taxes over 25 years. With a $13 million grant over 25 years, staff say the city would still see $4,359,228 in new property tax revenue over the 25-year period.
Staff say Germain Hotels decided to proceed with the proposed hotel after learning of the Ottawa International Airport Community Improvement Plan grant, after initially shelving the plan due to escalating costs and the impacts of the pandemic.
In July 2019, Germain Hotels and the Ottawa International Airport announced plans to build a $42 million, eight-floor hotel at the airport. By the summer of 2020, the project was abandoned due to a "business climate resulting from pandemic impacts on air travel and visitation to Ottawa, mandated business closures, and supply chain issues affecting costs", staff say.
When Germain Hotel re-examined the project in the fall of 2021, the cost of the project jumped to $55 million and the company determined that, "given the pace of pandemic recovery and escalating construction costs, the project was no longer viable", according to the report.
The Ottawa International Airport approached Germain Hotel following council's approval of the Ottawa International Airport Community Improvement Plan to try and resuscitate the Alt Hotel project.
"In late 2022, Germain Hotels decided to proceed with the project, but only if they could secure the financial incentive available through the YOW CIP program," staff say in the report for the April 4 finance and corporate services committee meeting.
"A YOW CIP grant would represent a material change to the project's financial forecast and feasibility and was a deciding factor, in addition to positive trends in the Ottawa visitor economy and air travel generally, to move the project forward."
The report says the new Alt Hotel at the Ottawa International Airport would create 50 new full-time jobs when it opens, while the economic impact of the proposed development is approximately $55 million in direct construction costs in addition to "significant indirect and induced economic benefits to the local economy."
Staff say the new hotel would generate $17.4 million in property taxes over the 25-year period for the grant, and $3.7 million for city project permits and fees.
According to the report, the grants would start at $295,347 in 2025, ballooning to $809,691 in 2049. The city would see an increase in municipal taxes starting at $393,796 in 2025, jumping to $1.079 million in 2049.
Mayor not "a fan" of taxpayers' money supporting businesses
Mayor Sutcliffe says he wants to hear from the Ottawa International Airport, staff, councillors and the public about the proposed grant for a hotel under the Ottawa International Airport Community Improvement Plan.
"I've said many times I'm not a fan of this kind of financing … or for development like this because we are taking taxpayers' dollars and putting it into a private business," Sutcliffe told CTV News Ottawa on Saturday.
"I know residents have raised a lot of concerns about that in the past. I'm ready to listen to the airport's proposal, and I'm open to hearing what other councillors have to say about it."
Sutcliffe campaigned during the fall municipal election on a promise to end two programs that subsidize property taxes for businesses, including the Community Improvement Plan program like the one that would provide a grant for the hotel at the Ottawa International Airport.
In December, council voted to suspend accepting new applications under the Brownfield program, which provides grants for the cleanup and revitalization of a site, while staff evaluate the program.
"In principle, I'm not supportive of these kinds of projects where we are essentially investing taxpayers' dollars in private businesses," Sutcliffe said.
"I want to support the airport and the airport is a huge economic driver, but this is not the kind of format that I like to see for the city to be supportive of a type of project like this."
Councillor, community group reacts
Somerset Coun. Ariel Troster said the CTV News Ottawa article on the proposed grant was the first time she had heard of the proposal.
"It's a nope for me," Troster said on Twitter.
"Not a cent to luxury hotels until we end chronic homelessness and stop forcing entire families to live in cramped motel rooms."
Horizon Ottawa said on Twitter, "public funds should be going to public services."
Former Coun. Alex Cullen also spoke out against the proposed grant.
"We don't pay property taxes to enable private businesses to make money," Cullen said on Twitter Saturday afternoon.
"We pay property taxes to fix potholes, have garbage picked up, run buses, etc."
Ottawa resident Michael Vorobej spoke out against the grant when a city committee approved the program last summer.
"I don't qualify for a grant on my property tax, my neighbours don't …. I don't see why big businesses are getting these deferrals," Vorobej said Saturday.
Vorobej says he has two concerns about the project.
"One is the idea that we are subsidizing large businesses with property tax dollars. I mean I pay property tax and it's a very big expense every year, I’m very concerned about the very idea of providing these subsidies to big businesses," Vorobej said.
"I’m very concerned the city will be providing incentives to clear forests…to locate businesses where there’s much better places for them."
Councillors on the finance and corporate services committee will debate the proposal on April 4.
The prosecutor leading an investigation into a horrific knife attack in a French Alpine town says four children aged between 22 months and 3 years suffered life-threatening wounds and that two adults also were injured.
The hot, dry conditions that are fuelling wildfires countrywide are just the beginning of what summer could look like in Canada this year, according to Environment Canada senior climatologist Dave Phillips.
The battle against hundreds of wildfires continues, as almost every jurisdiction in Canada remains under either heat or air quality warnings from the federal government. The day after what was supposed to be national Clean Air Day, dozens of alerts remain in place for unseasonable heat or smoky air quality.
Norwegian officials said the smoke from Canadian wildfires that has enveloped parts of the U.S. and Canada in a thick haze is expected to pour into Norway on Thursday.
New Brunswick students under the age of 16 who identify as trans and non-binary won't be able to officially change their names or pronouns in school without parental consent.
Pat Robertson, a religious broadcaster who turned a tiny Virginia station into the global Christian Broadcasting Network, tried a run for president and helped make religion central to Republican Party politics in America through his Christian Coalition, has died.
An official recommendation to wear a mask to protect yourself from wildfire smoke is being echoed by health experts as plumes of smoke make their way across parts of Canada, causing poor air quality.
New Brunswick students under the age of 16 who identify as trans and non-binary won't be able to officially change their names or pronouns in school without parental consent.
The Halifax Regional Municipality says it will announce Thursday when more residents can return to their homes in communities impacted by the Tantallon wildfires.
Irving Oil says it’s undertaking a “strategic review” with an eye to its future. In a release Wednesday, the company says it’s looking at a number of options, including the sale of its assets.
Blue Jays pitcher Anthony Bass said he's "in a better place moving forward" after speaking with Pride Toronto's executive director in the wake of his social media post that supported anti-2SLGBTQ+ boycotts.
An Ontario man has been charged with first-degree murder in the death of Claudia Iacono, the daughter-in-law of Mafia associate Moreno Gallo, after she was gunned down at the wheel of her car in Montreal last month.
The hot, dry conditions that are fuelling wildfires countrywide are just the beginning of what summer could look like in Canada this year, according to Environment Canada senior climatologist Dave Phillips.
The man in the spotlight during the first two years of the COVID-19 pandemic in Quebec, Dr. Horacio Arruda, has been appointed assistant deputy minister at the Ministry of Health and Social Services.
Romance scams have always been around, but they got worse during the pandemic, and fraudsters continue to use social media and dating sites to find victims.
Just before 8 a.m. on Tuesday, police say a man entered a business on Dundas Street near Adelaide Street and once inside, tried to steal things and made threats towards employees while holding a knife.
According to CTV News London’s Meteorologist Julie Atchison, a large area of low pressure over the Canadian Maritimes and a blocking ridge over central North America is allowing a steady flow of northerly air to usher in smoke from forest fires in Northern Ontario and Quebec.
The hot, dry conditions that are fuelling wildfires countrywide are just the beginning of what summer could look like in Canada this year, according to Environment Canada senior climatologist Dave Phillips.
The closure of Fort Gibraltar following the collapse of an elevated walkway that sent 16 students and one teacher to hospital has left some couples scrambling to find a place to get married.
There's high levels of air pollution in Waterloo region and Wellington County as smoke plumes from wildfires burning in Quebec and northeastern Ontario continue to blow into the region, Environment Canada says.
Kitchener is hosting a series of watch parties to cheer on basketball star Jamal Murray as his Denver Nuggets take on the Miami Heat in the NBA Finals.
Calgary city council has reconsidered its decision to vote against recommendations made by an expert panel to address the city’s housing affordability crisis.
Police say a man on a mobility scooter has life-altering injuries after he was struck by a vehicle in a northeast Calgary intersection on Wednesday evening.
An official recommendation to wear a mask to protect yourself from wildfire smoke is being echoed by health experts as plumes of smoke make their way across parts of Canada, causing poor air quality.
Drivers are being asked to find another way or prepare for delays on the Henday this weekend, because crews need to close a bridge over the North Saskatchewan River.
The Archdiocese of Edmonton will spend $3.2 million on reconciliation initiatives with First Nations, Métis and Inuit people in the Alberta capital region.
The battle against hundreds of wildfires continues, as almost every jurisdiction in Canada remains under either heat or air quality warnings from the federal government. The day after what was supposed to be national Clean Air Day, dozens of alerts remain in place for unseasonable heat or smoky air quality.
A human-caused wildfire on the Lower Mainland has grown to an estimated 800 hectares and continues to burn out of control Wednesday, according to the BC Wildfire Service.
Flooded underpasses have been a common occurrence in Regina this spring with several thunderstorms dumping heavy rain on the city, but Mayor Sandra Masters says several solutions are in the works to help prevent further flooding.
Regina city council has asked its administration to pursue permission from the Saskatchewan Municipal Board (SMB) to increase its debt limit to $780 million.
An official recommendation to wear a mask to protect yourself from wildfire smoke is being echoed by health experts as plumes of smoke make their way across parts of Canada, causing poor air quality.
