![](https://www.ctvnews.ca/polopoly_fs/1.6941133.1719363416!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
City looks to purchase former Nortel building with a $70 million discount
![Mary Pitt Centre The Mary Pitt Centre in Ottawa, Ont. (Google Street View)](/content/dam/ctvnews/en/images/2024/5/25/mary-pitt-centre-1-6900942-1716666945704.png)
The City of Ottawa is set to get a $72.2 million discount on the purchase price of a Nepean business complex if council moves to buy it in its entirety before the lease comes to an end.
- Sign up now for our daily CTV News Ottawa newsletters
- The information you need to know, sent directly to you: Download the CTV News App
In a report prepared for June's finance and corporate services committee meeting, city staff are recommending the committee move to purchase the Mary Pitt Centre, a nine-storey, 6.88 hectare site located at 100 Constellation Drive.
Multiple city departments are located inside the complex, along with offices for the Provincial Courthouse, the Employment and Social Services Hub and the Ottawa Public Health (OPH) immunization clinic. The building is the largest administrative center in the city portfolio and is integral to the city’s accommodation strategy, the report says.
The city has been leasing the complex from its owner, the Arnon Corporation, since 2003 when it took over from former Canadian telecom company Nortel Networks.
An appraisal of the building determined the value of the land and the building to be $84.4 million. The report says "favourable amendments" the city received when signing the lease provided the option to purchase the entire site for a flat price of $10 million, plus approximately $2.2 million in capital expenditures and closing costs.
At that price, the city would get to purchase the property at $72.2 million under its estimated value.
"The option to purchase the Mary Pitt Complex represents a secure path forward to ensure uninterrupted occupancy and service delivery," the report to the committee says.
The city currently pays approximately $6.3 million a year in rent, plus additional operating cost rent of $3.2 million (excluding realty taxes and HST). Staff say despite $1 million in annual expenditures, buying the land would save the city about $5.3 million every year.
The reports warns that council will have to move quickly in giving Arnon a notice of intent to purchase the property, which has to take place during a six month window between Sept. 2, 2024 and Feb. 28, 2025.
After that, the lease will terminate and the city would have to negotiate a new lease agreement with Arnon, but there's no guarantee the city would be given the option to renew.
"Not having a right to renew carries significant operational and financial risks as it would be disruptive and costly to relocate out of the Mary Pitt Center into alternate City facilities and private sector office accommodation," the report says.
The matter will be discussed at the next meeting of the city's finance and corporate services committee meeting on June 4. If passed, the decision would be left up to city council.
CTVNews.ca Top Stories
![](https://www.ctvnews.ca/polopoly_fs/1.6940954.1719356980!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
Smith tells Trudeau Alberta will opt out of federal dental plan
Alberta is opting out of the federal dental plan, the premier told the Canadian government late Tuesday afternoon.
One of Canada's most popular vehicles recalled over transmission issue; 95,000 impacted
One of the country's most popular vehicles is being recalled in Canada due to a transmission issue that may impact tens of thousands of drivers.
WikiLeaks' Assange pleads guilty in deal with U.S. that secures his freedom, ends legal fight
WikiLeaks founder Julian Assange has pleaded guilty to obtaining and publishing U.S. military secrets in a deal with Justice Department prosecutors that secures his liberty and concludes a drawn-out legal saga that raised divisive questions about press freedom and national security.
'We need to regroup,' says Liberal minister and Ontario campaign co-chair in light of byelection loss
A member of Prime Minister Justin Trudeau's cabinet and the party's Ontario co-chair for the next campaign says the Liberals 'need to regroup' after a shocking overnight byelection loss to Pierre Poilievre's Conservatives.
Pre-med students can't take MCAT in Quebec because of Bill 96
Areeba Ahmed says she's always dreamed of becoming a surgeon but her road to the operating room has become a complicated one ever since Quebec's French language law came into effect.
Protesters try to topple Queen Victoria statue near pro-Palestinian encampment in Montreal
Montreal police were called to intervene after protesters attempted to tear down the Queen Victoria statue at Victoria Square.
Cup Noodles serves up notoriously poisonous pufferfish
Pufferfish is regarded as a luxury in Japan and a meal featuring the potentially poisonous delicacy can easily cost up to 20,000 yen (US$125) at high-end restaurants.
'Truly a great British Columbian': Former B.C. premier John Horgan has cancer again
Former B.C. premier and current Canadian ambassador to Germany John Horgan has been diagnosed with cancer for a third time.
New experience in Halifax gets people up close and personal to the ocean's most feared predator
Atlantic Shark Expeditions launched a new shark cage experience which gives brave attendees a chance to get up close and personal with the oceans most feared predator.