'New deal' for Ottawa earmarks millions for housing, highways, public safety

Ontario Premier Doug Ford popped by Ottawa Mayor Mark Sutcliffe's monthly city hall breakfast Thursday where he served up a wide-ranging funding plan for the capital over the next decade — one that would also require significant federal investment.

The "new deal for Ottawa" offers up to $543 million over 10 years from the province for housing, travel, public safety and other areas.

Among the strings attached: the city must come up with acceptable plans, while the federal government must contribute up to $493 million in matching funds, bringing the potential value of the plan to just over $1 billion.

Thursday's news release and supporting documents, including full terms signed and dated March 22, paint a bleak picture of the capital where changing commuter patterns, mental health challenges and a chronic housing shortage has robbed the downtown of its "vibrancy and vitality."

The new deal aims to make Ottawa safer and better connected. Here are some of the highlights.

Roads and transportation 

The province is opening the door to undoing a decision made in the 1990s to download Highway 174 and the costs associated with its maintenance to the city.

The new deal lays out a three-step plan to upload the highway to the province, and provides up to $56 million for maintenance while that process is unfolding.

It's conditional on the city spending the resulting savings on "recovery and growth, such as housing."

Ford said the province will provide $9 million in immediate funding, even as it works out the details.

"It's a really good deal for everyone. So, yes, we'll take that responsibility," He told reporters Thursday morning at the Shaw Centre.

The long-discussed Kanata North Transitway would get $80 million, provided the municipal and federal governments each come up with the same amount, and the city develops a business case for it.

If the federal government doesn't come up with matching funds by next spring, the province's $80 million would go toward other transportation projects.

The deal also lays out $5 million for planning and up to $46 million to begin construction of the Barnsdale Road interchange on Highway 416, which was singled out in this week's provincial budget.

"That's going to be a game changer," Ford said.

There's also $50 million to repair and upgrade roads outside Ottawa's core.

Downtown safety, revitalization

The province is offering up to $48 million for Ottawa if the city comes up with a plan to improve public safety both downtown and on transit.

That would require a greater uniformed police presence downtown including a community policing centre in the ByWard Market, and the development of "alternate crisis response approaches."

Of that, $20 million is conditional on the federal government forking over $60 million to help Ottawa manage protests and other events that come with its status as the nation's capital.

Up to $20 million more is on offer for economic recovery and downtown revitalization, with Invest Ottawa singled out to receive some of that money.

Ford also called on the federal government to require their workers to return to the office at least three days a week, a point of contention for many public servants during contract negotiations last year.

"You got to get the economy going downtown. These restaurants are hurting, the shops are hurting. Ridership on the transit's hurting," he said.

"I think that's a normal request. You get hired, come to work. Imagine if I told everyone else in the province you don't have to go to work? Our economy would be shot. So, they shouldn't get special treatment."

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Help with housing

The province says it has up to $120 million for shelters and housing in Ottawa as long as the federal government contributes $228 million to fund hotel rooms for asylum seekers and a permanent newcomer reception centre.

The federal government is also expected to contribute $30 million to convert former federal buildings for residential use.

The province is offering Ottawa up to another $118 million if the city keeps hitting provincial housing construction targets.

Ottawa has committed to using municipal land for housing, including two unnamed parcels of surplus land where it plans to build modular homes.

The province has also promised to alter provincial regulations to allow taller buildings in certain areas.