WHEREAS the federal government, through Public Services and Procurement Canada, is redeveloping the block bounded by Metcalfe Street, Wellington Street, O’Connor Street and Sparks Street, known as the future “South Block”; and
WHEREAS construction is estimated to be completed in 2034 and will significantly disrupt the public realm on these streets, as well as impair annual signature tourism events and local economic activity in the neighbourhood; and
WHEREAS the federal government has a responsibility to ensure that as a good neighbour it must provide support to the impacted businesses and tourism sector throughout this decade of construction; and
WHERAS City Council approved a public realm plan for Sparks Street in 2019 and formally asked PSPC to contribute financially towards its implementation with no response received; and
WHEREAS through its approval of the Term of Council City Strategic Plan this Council has approved a strategic priority of “reimagining the downtown” and established the priority objectives of “increasing the public realm in strategic locations” and “increas(ing) economic activity, safety, and tourism”; and
WHEREAS through its approval of the City Economic Development Strategy and Action Plan, Council approved Action Item 2.2 “Advance Downtown Redevelopment Projects” and specifically “Secure the funding required to advance significant downtown revitalization projects, including ByWard Market and Sparks Street Public Realm Plans”; and
WHEREAS the City of Ottawa will collect modest revenues from implementation of the project;
THEREFORE BE IT RESOLVED THAT staff review the temporary construction encroachment permit revenue projections from the South Block project; and
BE IT FURTHER RESOLVED THAT staff review the financial estimates for Council’s priority public realm projects in the affected area; and
BE IT FURTHER RESOLVED that staff consider these projections and estimates as part of the Draft 2025 Operating and Capital Budget development and report back as part of the Draft 2025 Operating and Capital Budget process; and
BE IT FURTHER RESOLVED THAT Transportation Committee recommend that City Council delegate the authority to the General Manager, Planning, Development and Building Services to negotiate and enter into a Memorandum of Understanding with PSPC such that they commit to the following before any Temporary Construction Encroachment permits are issued by the City of Ottawa after February 1, 2025 for the South Block Project:
- Funding for the federal portion of the Sparks Street Public Realm Plan design;
- Annual financial support to the Sparks Street Business Improvement Area for tourism destination development and programming;
- More favourable customized leasing terms for the vacant Sparks Street federal properties such that real progress can be made in finding short- and long-term small business retail tenants for the street.