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Business leaders hope new leadership on Hill brings ‘fresh eyes’ to issues facing downtown Ottawa

January 8, 2025

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Shawn Hamilton prefers to see a looming change in leadership on Parliament Hill as a glass-half-full proposition for supporters of revitalizing Ottawa’s downtown. The veteran commercial real estate broker and outspoken civic booster has been one of the loudest voices calling for new ideas to bring life back to the city’s core, where foot traffic has plummeted since the pandemic as office buildings hollowed out amid a widespread shift to remote work. Leaders of the downtown revitalization campaign, including Hamilton, argue the federal government could play a key role in the process by selling off aging Crown-owned properties to private-sector developers that could convert them into housing and other uses. In May 2023, the feds released a list of several buildings they intend to dispose of in the National Capital Region, including L’Esplanade Laurier and the nearby Jackson Building. Since then, however, updates on the disposal process have been few and far between. Hamilton said this week he doesn’t think Justin Trudeau’s pending resignation and the prorogation of Parliament until the end of March will have much, if any, effect on the government’s effort to sell the buildings. “I’m not sure if the ball was ever really rolling in terms of the feds doing anything downtown,” he told OBJ in an interview on Tuesday, one day after Trudeau announced he intended to resign once a new federal Liberal leader is chosen. “We only hear about the divestment of their assets as sort of a political sound bite. In between those sound bites, we hear absolutely nothing about timeline, process, public consultation, discussion of any sort (about) the divestment of these assets. From my perspective, they might as well not even be on the market.” Still, Hamilton, a principal at Proveras Commercial Realty, is trying to remain optimistic. He’s hoping Trudeau’s exit might set the stage for a more concerted effort from the feds to speed up the disposal process and work with local officials on other revitalization efforts. “Maybe a change (in leadership) will bring with it a change in the view of the importance of divesting of these buildings,” he said. “Maybe a new government, or a change in leader, whichever it’s going to be, will breathe new life into a (process) that, to the outside world, appears stalled.” Hamilton suggested a shakeup on the Hill might provide the opportunity to take another look at the office buildings on the current federal disposal list to ensure they’re the best candidates for other potential uses. “They can put any building they want on a list that they feel is best for them to get rid of,” he said. “But that doesn’t mean the buildings they’re getting rid of are desirable for somebody to buy. What’s the point of putting buildings on a list to dispose of if those buildings will never be sold to anybody? Hopefully, a change will (bring in) some people who are open to that idea.”

'Bureaucracy is not shut down'

Claridge Homes chief financial officer Neil Malhotra, who co-chaired a task force that examined ways to revitalize Ottawa’s core, said any effort to offload surplus government buildings will be a “multi-year process” that likely won't be affected by Monday’s events. “The bureaucracy is not shut down,” Malhotra noted. “There’s still a lot of work that has to happen before things start making their way online. So I don’t think (prorogation and Trudeau’s resignation create) a particular risk for a delay.” With the three major opposition parties pledging to topple the minority Liberal government at the earliest opportunity, there could be a federal election as soon as May. Both Hamilton and Malhotra said that no matter which party ultimately controls the House of Commons, the future of Ottawa’s downtown should remain a major priority. “I think everyone recognizes we’re the capital city and something needs to happen here,” Malhotra said. “I would think when any large employer in any city should care and does care about the environment their workforce is in. I think there’s a national interest in (rebuilding) Ottawa’s downtown, and I think all those concerns will still be front of mind no matter who’s sitting in the (prime minister’s) seat.” While the Treasury Board now requires most federal employees to work in the office at least three days a week, Hamilton said “there still doesn’t seem to be a management plan” for enforcing the mandate. He wants the next government to push for a clear, coherent return-to-office plan that will benefit downtown Ottawa. “I hope a change in leadership or government, whichever occurs, will bring fresh eyes to this and recognize that our largest workforce in the downtown (core) doesn’t seem to be managed in an effective way.” In the meantime, downtown merchants that have benefited from civil servants’ return to the office as well as measures such as the HST holiday might be in for a tough stretch now that Parliament is on an extended break, Hamilton and Malhotra said. Businesses in the hospitality industry, such as hotels and restaurants, could be particularly hard hit because there aren’t as many staffers on the Hill, they explained. “In the short term, elections are hard on Ottawa,” Hamilton said. “Even with proroguing and knowing that a writ is going to drop, a lot of business in Ottawa slows right down.” But he predicted the pain won’t last too long. “This will be an annoyance for the next couple of months that we will rise out of. I think we can all be excited that there will be fresh eyes on the problems that are facing our city.”