CBC: Controversial developer donation policy punted to working group

"We've chosen a nuclear option, one that can tie our hands and prevent us from working on behalf of our communities," argued Coun. Laine Johnson. "It shifts us from actors to audience. We've reached this point in a hurry."

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Controversial developer donations policy punted to working group

4-member group will work to clarify what councillors should, shouldn't do

The contentious debate over whether to ban councillors from negotiating donations for their wards sparked confusion around the council table on Wednesday, as the city clerk struggled to answer a litany of questions on hypothetical no-go scenarios. 

By the time the 90-minute discussion was over, many councillors complained about a lack of clarity surrounding the policy options on the table.

While Mayor Mark Sutcliffe has said multiple times that there was no need pause the plan to seek a consensus that he seems to consider far out of reach, full council opted to forego an immediate decision and send the debated staff report to a newly formed working group. 

"I know there are a lot of strong feelings about this issue. I've always said ... my preference would be to ban voluntary contributions," Sutcliffe said after the meeting. 

"I know some councillors said they saw this as a solution in search of a problem, but I don't see it that way. There is a perception that there's a risk here — the conflict of interest or the appearance of a conflict of interest — and we don't want the development process to be tainted."

But the policy, once it's in place, has the potential to reach beyond the development process and could bring unintended consequences. 

Ban called the 'nuclear option'

The list of possible breaches was lengthy. 

Many quizzed city clerk Caitlin Salter MacDonald, whose team has been put in charge of drafting the policy, angling for a better understanding of how the shift would change the ways councillors work.  

Could a councillor still ask grocery stores to donate hot dogs to community events? (Yes, according to a different policy.)

What about suggesting a developer contribute the purchase of a play structure at a city park? (A definite no-no.)

And how about requesting help in the aftermath of a tornado? (Maybe, if a special emergency exemption is granted.)

"We've chosen a nuclear option, one that can tie our hands and prevent us from working on behalf of our communities," argued Coun. Laine Johnson. "It shifts us from actors to audience. We've reached this point in a hurry."

Staff would negotiate deals

In cases where councillors are barred from acting themselves, they could connect community groups with staff who can liaise with developers on a requested "voluntary benefit" — a perfectly acceptable solution to many.

"I think this whole discussion is unnecessarily dramatic, really and truly," said Coun. Cathy Curry. "This is not going to change anything I've been doing, or anything I plan to do in the future." 

The reality is not as simple as it may appear, however.

Planning staff, for instance, can only make requests under certain circumstances, dictated through statutes. If an overworked department simply does not have capacity to take up the cause, they will not follow through. 

Central to this debate has been whether an inherent power dynamic exists between councillors and developers that removes the possibility of negotiating without a real or perceived conflict. 

Coun. Ariel Troster noted that staff themselves hold significant sway. 

"Staff report to committee about whether they support a particular development in the same way that we have the opportunity to vote a committee on whether we support a particular development," she said. "Their recommendations frankly form the basis of what we usually vote for. We usually agree."

Fears of 'a shadow regime'

The other point of contention was how those who breach the new policy will be held accountable. 

Discussion started off with a motion deemed by its mover, Coun. Glen Gower, to be akin to a "technical amendment," which would have put the city clerk in charge of monitoring the policy and perhaps even weighing in on complaints. 

Coun. Jeff Leiper vehemently disagreed, saying this is the work of the integrity commissioner, "full stop." 

He passionately argued that having a paid bureaucrat who reports to the city manager in this position would be a grave mistake.

"It's a perversion of local governance," he said. "I don't anticipate that there's any ill will, mayor… but if this motion passes, we are creating a shadow regime." 

When asked about how the new policy would work, the integrity commissioner could only defer to the clerk. The auditor general similarly described the situation as a "grey area" that's not yet understood. 

Political drama surrounds issue

Since this debate began early this year, the spotlight has most often been on the political sphere. 

Accusations arose surrounding one specific voluntary contribution agreement, with councillors questioning how a now-withdrawn $300,000 donation to Capital ward was negotiated. 

On the other side, councillors argued it's hypocritical to argue against negotiating added benefits for the community while accepting campaign donations from developers.

Neither situation is against current rules. 

Policy heads to working group

The divide seemed firm, but as councillors at Wednesday's meeting delved into the details of a new policy some wavered. 

Coun. Allan Hubley was frustrated that a deferral vote — which was narrowly defeated — was voted on before it was clear how many questions remain unanswered.

He and others stepped away from their chairs to linger in pairs or small groups, discussing potential possibilities among themselves and with the mayor's top staff. 

In the end, all agreed to create a working group to iron out specifics. It will be made up of councillors Hubley, Johnson and Laura Dudas, along with Sutcliffe or his designate. 

While the mayor seems unwilling to budge on the ban, he told CBC he understands some councillors are concerned about the "language" and how a new policy might restrict their other activities. 

"If there's an opportunity to provide more clarity about that by taking a few extra weeks, then I'm fine with that," he said.

The working group is set to report back to council by the end of September.

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As the City moves toward adopting a new Zoning By-law in early 2026, alongside two ongoing secondary plans in College Ward for 2026-27, and several infill and larger developments always ongoing, I often hear from residents with concerns about density, parks, parking, school capacity, shadows, transportation, property standards, and property values. Many residents also share they are excited by the new opportunities and growth these changes could bring. 

Given how much has changed in recent years, I wanted to take a moment to walk through the evolving planning landscape — both locally and provincially — and explain how these changes shape development in Ottawa. 

At a recent community event, it was suggested that my background in affordable housing presented a “conflict of interest” with my role as your City Councillor. Since a conflict of interest is defined by the Municipal Act as a financial interest in a particular matter – that is, that I will personally benefit from decision-making on housing issues – this doesn’t quite add up.

I think the suggestion was that as someone who cares about the skyrocketing number of people who are forced to choose between housing costs and savings, or food, or other financial priorities, I’m compromised in my ability to advocate for current residents. I can only respond that I think people who need affordable housing are personal support workers, hairstylists, students, seniors and others who live in our communities today. I think it’s our kids and our grandparents.

I don’t agree that representing their interests, as well as the interests of those fortunate enough to be doing better, is in any way a conflict of interest. It’s hard, but that’s the job.

As disappointed as I was in the comment, it gives me an opportunity to reflect on my background and the values I bring to my work as your Councillor. I ran openly on my background in affordable housing as an asset to the role, and I think it might be useful to share how I believe my background makes me – and will continue to help me – be a better City Councillor.

City councillors this week debated a plan to give developers a break from having to pay for community improvements alongside the housing they build.

I introduced motions for a more measured approach: one that better shares the costs of keeping up with intensification between developers and taxpayers; and to hold a carefully planned review of whether giving a break to developers actually meets our housing goals, and to make sure the impacts are fair across the city.

I am pleased to say that my colleagues unanimously supported my approach.

No doubt about it: new homebuilding in the city has slowed. Ottawa developers argue that by giving them a pass on the 4 per cent of land value they put towards local community projects, we will see more shovels in the ground faster.

That might be true, or it might not. But we need to consider the implications of foregone benefits charges and what will happen if those aren’t forthcoming. I’d argue that giving developers a break from investing in community benefits will impact some communities more than others.

In neighbourhoods like College Ward, there are a lot of modest homes built in the 1960s on large, well-treed lots. The streets are wide without sidewalks or streetlighting. Density – the number of homes per hectare – is low.

These are homes that were built for young, growing families who have largely now grown up and left, with streets designed from another time. As empty-nesters move on, their neighbourhoods are in transition. Our older suburbs inside the Greenbelt are prime for development and new residents expect modern infrastructure and services.

I like to call our neighbourhood and the ones like it – inside the Greenbelt but not downtown – the “Delta” communities because they are going to see the most change in the coming years. Although communities across the city will change, wards like College, and parts of Gloucester, Riverside, Nepean, and others, will change the most dramatically. In time, albeit over several decades, these neighbourhoods will look very different from how they were planned. It is an anxious time for many families in established communities.

We need infill, and these neighbourhoods can handle the increased density. But more people create more pressure on community services and spaces. We need to build new recreation facilities and upgrade the ones we have. We need pedestrian crosswalks, sidewalks, and street lighting to make our roads safer for the influx of kids. Newer suburban neighbourhoods have been built with a higher standard, while the pipes and other infrastructure in downtown are so old, the city has no choice but to replace them and upgrade the roads and sidewalks at the same time.

Neighbourhoods like City View and Lynwood, for example, have no sidewalks, no streetlights, are designed with wide roads for fast speeds, and have few parks or no parks! But when we welcome such a dramatic change in our neighbourhoods, from 4 storeys to 32 storeys, would you not agree that services must improve to match the new population?

The question before us this week was: who should pay to ensure services keep up with growth in established neighbourhoods? Should it be the residents of new homes to whom developers pass municipal charges? Or should it be you and me, the existing taxpayers?

We need more housing, but we also need to balance the increased density with quality of life for both the existing residents and the incoming ones. Benefits charges are a fair and reasonable approach to doing that. Providing developers with a holiday will put the burden on everyone’s tax bill.

There isn’t enough analysis of the recommendation being put to Council to convince me and others that axing benefits charges will actually result in more homes being built. Or how much the average taxpayer will need to pay to upgrade the needed facilities in those existing neighbourhoods. My concern is that by stripping developers of the obligation to invest in community improvements, we pit the Official Plan’s vision of the ‘most livable midsized city in North America’ against the Task Force’s vision of making ‘Ottawa the most housing-friendly city in Canada’. We need both.

See the CBC article

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