City of Ottawa approved $90M in brownfields grants in 5 years

The City of Ottawa has approved more than $150 million in tax breaks for developers who clean up contaminated sites since the program began 15 years ago, although it has paid out far less than that. 

City council voted to pause the brownfields grant program earlier this month while it awaits a review. Some council members including Mayor Mark Sutcliffe and Coun. Shawn Menard want to make sure the city doesn't offer subsidies to encourage the redevelopment of former gas stations, print shops and other derelict sites where developers would likely build anyway.

• City of Ottawa pauses grants to developers who de-contaminate sites

By the time the program was a decade old in 2017, the city had approved grants exceeding $70 million, often with little discussion.

Those included multi-year tax breaks worth several million dollars each for the expansion of the Rideau Centre and the 900-home redevelopment of the former Oblates lands in Old Ottawa East.

$90M approved since 2018

Since then, however, the city council of 2014-2018 approved the largest brownfield grant to date — up to $60.8 million for the major Zibi redevelopment on Chaudière and Albert islands on the Ottawa River in 2018.

Nearly $30 million followed for various projects, including $10.5 million in the final months of the last term of council.

Last June, council approved up to $4.3 million in brownfield grants over 10 years to Lofty Riverside GP Inc. for a planned tower on Bank Street between the Billings Bridge Shopping Centre and the Rideau River. 

It also approved up to $665,000 to Claridge Homes over 15 years for the triangle of land between Baseline and Merivale roads and Clyde Avenue, where the developer intends to build 10 residential buildings of nine to 13 storeys each.

While council has approved tens of millions of dollars under the program, Don Herweyer, the city's interim general manager of planning, real estate and economic development, notes the actual payment can be far less in a given year.

That's because construction can take many years, and payments too are spread out. Council also approves the upper limit of a brownfield grant, but the actual remediation costs might be lower.

As for the extraordinarily large grant approved for the Zibi redevelopment in 2018, Herweyer points out it was approved under older rules — before the city reduced the level of brownfield incentives.