UPDATE: Province provides $20M for downtown revitalization, tourism in Ottawa

Ontario Finance Minister Peter Bethlenfalvy announced a $20 million investment in Ottawa's tourism and downtown revitalization efforts over the next three years. Photo by Mark Holleron.
Ontario Finance Minister Peter Bethlenfalvy announced a $20 million investment in Ottawa's tourism and downtown revitalization efforts over the next three years. Photo by Mark Holleron.

Ottawa business leaders are calling today’s provincial funding announcement for Ottawa a good step in the right direction toward revitalization, but more work will need to be done.

The Ontario government announced this morning that it is advancing its “New Deal” for Ottawa with a $20-million investment in tourism and downtown revitalization efforts over the next three years.

The funding, part of the $543-million “New Deal” announced earlier this year by the premier, will contribute to multiple revitalization initiatives downtown, including $1.5 million to Invest Ottawa to attract new investment from international and local companies to help stimulate sustainable, long-term economic growth; $1.05 million for community safety initiatives by the Somerset West Community Health Centre; $11.8 million to turn William Street into a permanent pedestrian street; $3.85 million to improve signage and other street-specific upgrades; and $1.35 million for marketing and promotion to attract visitors and develop a culture and entertainment initiative, launching in 2026 as part of Ottawa’s 200th anniversary celebration. 

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It will also provide $450,000 towards a new “Downtown Vibrancy Office” managed by the Ottawa Board of Trade to build business and investor confidence through additional projects.

The $11.8 million to transform William Street into a pedestrian-only street will help in “enhancing the ByWard Market.” Zachary Dayler, executive director of the ByWard Market District Authority, said he sees this collaboration between the provincial and municipal governments as “incredibly positive.”

Dayler called the William Street transformation “a critical first step” toward revitalization.

“It’s going to allow us to bring in some of the much-needed street trees and canopies that are  desired. It will allow us to do a full-scale redo of the street, from the paving to the accessibility of the sidewalks to the lighting,” he said. “These are critical components to illustrating to Ottawa that we’re serious about ByWard, the province is serious about ByWard, and that we’re making the investments in a place where this city started 200 years ago.”

Dayler also said the money will be put toward improving the area’s power hookups, as well as access to water and lighting. 

“(The funding) allows us to extend our program to vendors, businesses and activations that might not have been able to access that space before,” Dayler said.

The province also announced that it is committing $1.35 million toward marketing and promotion to attract visitors and develop a culture and entertainment initiative. Dayler said creating a “cultural district” is a solid strategy to encourage people to discover more of the city.

“We have the National Gallery, the Ottawa Art Gallery, Parliament, the Canadian Museum of History and all these world-class entities in such a small geographic area, but how do we connect them? (Connecting them through a cultural district) not only generates economic spending, but also encourages people to explore the city. The ByWard Market needs to be the jumping-off point for visitors when they get here,” he said.

Shawn Hamilton, a principal at Proveras Commercial Realty, calls today’s funding a great start.

Hamilton, an advocate for downtown revitalization and addressing issues such as  homelessness, said that, while the funding is welcome, it is not the complete solution to the problem.

“I didn’t view this as sort of the standalone basket of goods that, on its own, would cure Ottawa of its downtown issues, but I was looking at it as something that’s complementing the efforts that are already ongoing,” Hamilton said.

Hamilton said that homelessness, addiction and related crime are, combined, “probably our single largest issue in the downtown core.”

“(These issues) create a corresponding feeling of an erosion of safety, which is one of our biggest threats to downtown revitalization. So I’m happy to see that there’s a million dollars as opposed to none, but I’m hoping that it ties in with existing programs and that this is the start of a dialogue between the city and the province that creates future opportunities for future funding,” he said. “I think, personally, I’d always like there to be more. I think we are in a fight like we’ve never been in before … but let’s start with this. Let’s deploy it well, and then we have a case for why we need more.”

Hamilton said the investments in Invest Ottawa and the “Downtown Vibrancy Office” will help boost prosperity in the city.

“This is extremely important in the face of a downsizing government, to allow us to sort of re-establish and regrow our private-sector business in Ottawa,” he said.

Ian Lee, business professor at Carleton University, says he remembers a time when the ByWard Market was the place to go in Ottawa, but that issues such as crime and homelessness are driving businesses away from the area.

“Hopefully, this money and some other policies, like the announcement of a police station or substation in the Market and enhanced policing, will turn the Market around,” he said. “If they’re successful at turning around and restructuring and renovating and making the ByWard Market into a pleasant and safe place again, then I think small business will come back, and that’ll be good for Ottawa, that’ll be good for the community.”

In a statement about the province’s announcement, Ottawa Tourism said the funding is welcome news for the tourism industry and the City.

“As a tourism gem in our city, Ottawa’s downtown will benefit from this funding that will support numerous efforts on the part of our City and economic development partners, taking its place once again among the top experiences for visitors and residents alike,” the statement said.

Minister of Finance Peter Bethlenfalvy made the funding announcement in Ottawa this morning at the Mayor’s Breakfast.

“Through our New Deal, our government is taking action to ensure Ottawa is a premier destination for tourism and a safe, vibrant place for those who call it home,” Bethlenfalvy said in a news release. “Through our investments and partnership with the city, we’re making our national capital safer and helping attract visitors, jobs and investment for the long term.”

“Ottawa’s downtown, including the ByWard Market, is vitally important to the local economy and quality of life for our residents,” said Ottawa Mayor Mark Sutcliffe in the release. “This investment of $20 million from the provincial government is a boost to our revitalization efforts in the Market. This important funding will enhance the safety, vibrancy and economic growth of our downtown core.”

“The new Downtown Vibrancy Office will be instrumental to implementing revitalization projects and boosting investor confidence. We’re eager to continue our partnership with the province, the city, and local stakeholders to transform Ottawa’s downtown into a more diverse, resilient and vibrant city core, one that attracts residents, businesses, and visitors alike,” said Sueling Ching, president and CEO, Ottawa Board of Trade.

“Ottawa is a magnet for global high-growth tech firms and talent that create multi-generational jobs, revenue, and economic impact. Together with partners across our community, we look forward to attracting new companies, investment, and business opportunity by harnessing the full potential of Canada’s capital. This will fuel new jobs and further increase Ottawa’s impact as an economic engine for the province,” said Sonya Shorey, president and CEO, Invest Ottawa.

The “New Deal” was initially announced in March by Premier Doug Ford, as a wide-ranging, $543-million investment to support the city’s economic and tourism recovery.

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EVENT ALERT: Mayor's Breakfast with Ontario Finance Minister on Wednesday, Dec. 4 @ City Hall