City won't ask for $1 LRT lands: council
Posted Jul 29, 2010 By Charelle Evelyn
Email
Print
Tweet ThisEMC News - Last week's aborted suggestion that the City of Ottawa request free land from the federal government for the light rail transit (LRT) system would have been "mischievous," according to a local federal representative.
At the July 14 city council meeting, Gloucester-Southgate ward Coun. Diane Deans proposed that the city make a formal request to the federal government to purchase the necessary land for LRT stations and rights of way for $1 "in the spirit of cooperation and mutual interest in serving taxpayers."
She said that during the June press conference where it was announced that the federal government would contribute $600 million to LRT, John Baird, federal minister of transportation was asked if the feds would give the city the land for free. Mr. Baird's response was that the city had not asked for it.
"We know for sure if we don't ask, we won't get the land," Coun. Deans said, prior to last Wednesday's vote.
Ottawa-Orléans MP Royal Galipeau disagreed with the idea and said that it was not a serious request.
"This motion is only mischief," he said, adding that had it been serious, it would have been put on the table during earlier negotiations.
"We do our negotiations in an open manner, in an honest manner and after we shake hands, that's the deal," Mr. Galipeau said.
But Coun. Deans was serious about the request. She cited a 2006 precedent where Mr. Baird and Nepean-Carleton MP Pierre Poilievre helped the Queensway Carleton Hospital to secure $1 rent from the National Capital Commission.
"The principle is the same in this case," she said. "One level of government serving a mutual public interest should not be paying market value."
Ultimately, city council chose not to approve Coun. Deans' suggestion. Councillors and staff felt that the request could affect the city's relationship with the federal government.
"That doesn't make a lot of sense to me," Coun. Deans said.
The $2.1 billion light rail project has financial commitments from all levels of government.
"The Government of Canada pays its fair share to the City of Ottawa. And will continue to do," said Mr. Galipeau.
For example, he said, the federal government paid about $70 million for the old city hall on Sussex Drive, which he said was market value.
However, Coun. Deans said that the sale of the old city hall was not a good comparison because an appointed transition board, and not the elected representatives on city council, negotiated the 2001 sale.
"They got the biggest fire sale price of all city halls going," she said, adding that she does not believe $72 million was market value.
"I'm a tenant of the City of Ottawa," Mr. Galipeau said, referring to the space he leases in Orléans for his constituency office. "As a matter of fact, the lease is up and the City of Ottawa is driving a hard bargain. If I said I want $1 a year for 12 years they'd laugh me out of the room."
Following the vote, Mr. Galipeau said he was pleased with council's decision. He said that when you look at the city's track record of negotiations with the government, they have been successful at getting serious funding.
"I don't expect the city will become childish in future negotiations," he said.
During negotiations, the federal land was disqualified as an eligible cost for the federal government to cover. The necessary land is budgeted at approximately $40 million.
The city has decided that instead to look at other cost-saving measures such as compiling an inventory of the needed land and entering into negotiations with the owners, long-term leasing and deferring payments.
"There's a whole number of areas that need to be looked at," Coun. Deans said. "We need to leave no stone unturned."
cevelyn@theemc.ca
blog comments powered by Disqus
