Ontario reaches ‘new deal’ with City of Ottawa

Ontario has reached a so-called “new deal” with the City of Ottawa that sees the province take over certain major costs, the provincial government said Thursday.

The province will take over ownership of Highway 174, support the repairs of major connecting roads and open a new police station downtown.

“This historic new deal reflects our government’s dedication to the economic success of Ottawa and all of eastern Ontario,” Premier Doug Ford wrote in a statement.

“I want to thank Mayor Sutcliffe for working with us to reach an agreement that will help Ottawa continue rebuilding its economy and deliver on key priorities, including building homes and highways.”

Ford said the deal reflects the city’s unique position as the country’s capital and eastern Ontario’s economic engine.

The province will give the city $546 million in a 10-year deal to help its economic recovery and revitalization.

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“This is a big win for Ottawa,” Mayor Mark Sutcliffe wrote in a statement.

“These investments will relieve significant budget pressures for the city and will help us to deliver better services to our residents.”

A tranche of money will also go toward conditional funding for emergency shelters, the design and construction of an interchange on Highway 416 in the suburbs, and a transitway.

Ontario said the city has made a number of “reciprocal commitments” to the province, including opening up land for housing development, strengthening the vacant home tax and minimizing taxation.

Ford and Sutcliffe also called on the federal government to “do its part to help revitalize the downtown economy.”

Last fall, Ford announced a deal with the City of Toronto that saw the province take over ownership and operational costs of two highways as the city faced a $1.5-billion shortfall for 2024.