The City of Ottawa’s Financial and Economic Development Commission has taken a first step toward providing Ottawa Hospital with $150 million to help pay for the new Civic Campus.
A report prepared for Tuesday’s FEDCo meeting advised the committee to approve the financial framework and guiding principles for developing a response to Ottawa Hospital’s request for City Hall funding.
Members of the FEDCo unanimously approved the report.
The four “guiding principles” to support the work and recommendations are:
- Minimal to no financial burden on Ottawa’s taxpayers
- No diversion of existing and committed corporate or capital budget dollars to the municipal local share
- The exploration of one-time or unique financial options that are time-specific and context-specific
- Supports the city’s climate goals and community sustainability.
The report says the “minimum to no burden on taxpayers” means property taxes will not be increased and the city will maintain the tax increases as approved by the city council.
The $2.8 billion project to build a new state-of-the-art hospital near Dow’s Lake is primarily covered by the provincial government, at a cost of $2.1 billion, but Ottawa Hospital has additional funding. financing from other sources is required. In April, a landmark $500 million fundraiser — the largest in Ottawa history — was launched to help cover costs. The remaining money comes from the proceeds of the hospital and from the application to the municipality.
Executive Chairman of the Ottawa Hospital Foundation’s “Campaign to Create Tomorrow,” Roger Greenberg, said the fundraising campaign is nearly halfway through.
“People are enthusiastic about building our new hospital. I hope this committee shares that enthusiasm,” said Greenberg.
Ottawa Hospital CEO Cameron Love added that Ottawa Hospital is committed to working with the city on a plan to ensure the $150 million local contribution is funded.
“We believe that, given the extraordinary importance of our new hospital to the health of every citizen of Ottawa, our parents, our children and our grandchildren, the City of Ottawa has a duty to ensure that all of our loved ones receive the best possible health care, and to invest with TOH, and the county and federal governments, in our future,” Love said.
The decision still has to pass the city council on May 11 before it is officially approved. Final decisions, however, will have to wait until the next council term after the October 24 municipal elections. The staff will report in the new term with options to fund the $150 million request.
The City of Ottawa’s $150 million contribution would not be needed until the new hospital is substantially completed by 2028.
Since the amalgamation, the city has never contributed money to the local share of hospital construction.
–With files from CTVNewsOttawa.ca’s Josh Pringle.