A New Deal for Ottawa

Agreement between province and city invests in Ottawa’s unique needs as national capital, regional economic hub

The Government of Ontario and the City of Ottawa have reached a new deal that recognizes and invests in the city’s unique needs as Canada’s national capital and eastern Ontario’s economic hub, helping ensure the city’s sustainable, long-term growth and prosperity. The agreement includes a phased plan to guide the upload of Ottawa Road 174 to the province, provincial support for the repair and upgrade of the city’s major connecting routes and rural roads, designing and building a new interchange at Highway 416 and Barnsdale Road, and improving public safety by opening a new police neighbourhood operations centre in the ByWard Market area.

Ontario and Ottawa are calling on the federal government to step up with support that recognizes its responsibility to the national capital and helps restore public transit ridership while revitalizing Ottawa’s downtown economy.

In recognition of the unique economic and social challenges faced by the City of Ottawa, which has had a slower rebound from the effects of the pandemic and is an economic and social service hub for people across eastern Ontario and western Quebec, Ontario is providing up to $543 million in operating and capital funding tailored to fuelling Ottawa’s economic recovery and accelerating revitalization of the downtown core. Funding will further support upgrading and building essential road and highway infrastructure to support the local economy and drivers across Ottawa’s large suburban and rural footprint.

The agreement includes up to $197 million over three years in provincial operating supports and up to $346 million over 10 years in provincial capital supports.

In addition to financial supports, Ontario commits to working with Ottawa to explore opportunities to fund and build more infrastructure, including through the Building Ontario Fund and policy changes to assist the city in removing barriers to getting more homes built faster.

The City of Ottawa has made a number of reciprocal commitments to Ontario, including opening up municipal lands for housing development to support shared housing priorities, ensuring Ottawa meets and exceeds its housing targets, strengthening the city’s vacant home tax, implementing efficiency measures that minimize the property tax burden on Ottawa’s people and businesses and facilitating the development of a long-term care home at The Ottawa Hospital.

Together, Ontario and Ottawa are calling on the Government of Canada to provide federal support on shared priorities, including shelter supports for asylum claimants, infrastructure funding to support new housing, and support for Ottawa’s unique and excess costs arising from managing protests and demonstrations in the capital.

In addition, as the largest employer in the city, Ontario and Ottawa ask the federal government to do its part to help revitalize the downtown economy. The federal government has an important responsibility to revive Ottawa’s downtown and ensure the city’s unique character and attractions continue making the nation’s capital a tourism destination for Canadians and international visitors.

Regards: A New Deal for Ottawa | Ontario Newsroom