Cost undetermined as Ottawa advances new west-end paramedic headquarters, tackles $1.2B capital gap

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Ottawa Construction News staff writer

The City of Ottawa’s finance and corporate services committee has approved the next steps for a new west-end paramedic deployment facility, while endorsing sweeping financial measures to plug a $1.23-billion infrastructure funding gap.

During its meeting Tuesday (June 2), the committee recommended a three-stage competitive procurement process for the new Ottawa Paramedic Service headquarters at 4061 Strandherd Dr. in Barrhaven.

While a final budget and opening date are yet to be determined, the city has previously approved $4 million for early-stage design and engineering.

The project will be delivered through a Design, Build, Finance, and Maintain (DBFM) public-private partnership, spreading capital costs over 30 years. The municipality expects the provincial Land Ambulance Service Grant to cover half of the eligible capital and operating costs.

The current paramedic headquarters on Don Reid Drive, built in 2005, is operating significantly over capacity due to population growth and expanded service demands.

The paramedic facility was just one of several major construction and infrastructure items addressed by the committee:

Ādisōke project needs $18.5M top-up

The committee approved an $18.5-million request for additional funding to maintain project oversight and top up the construction contingency for Ādisōke, the new joint facility for the Ottawa Public Library and Library and Archives Canada. While the building is approximately 85 per cent complete, contractors have communicated further construction delays. The additional costs will be shared between the city and its federal and municipal partners.

Plugging a $1.23-billion capital gap

Councillors approved a new 10-year Tax Long Range Financial Plan to address a $1.23-billion funding shortfall for the renewal and maintenance of tax-supported municipal infrastructure. To bridge the gap, the city plans to double its annual capital contribution increase from $6 million to $12 million. Beginning in 2029, the city will also increase its annual debt issuance to an average of $96.5 million — a $36.5-million hike over current levels. The plan also relies on a one-time $32-million draw from the capital reserve.

Green transit revenues

The committee approved joining the federal Clean Fuel Regulations Program, allowing the city to generate and sell compliance credits from its Zero-Emission Bus (ZEB) program. With plans to replace 350 diesel buses with electric models by 2027, the city estimates the credits could generate $1.3 million in 2026, scaling up to roughly $4.3 million annually upon full deployment.

Affordable housing tax relief

To support the community housing sector, the committee updated the Municipal Housing Facility By-law. The changes will allow a projected maximum of 4,500 existing non-profit affordable units, and potentially 500 new units annually, to qualify for a minimum 20-year municipal and education property tax exemption. Providers must reinvest the property tax savings into expanding portfolios, funding capital repairs, or offering deeper rent affordability.

City council will vote on the committee’s recommendations on Wednesday, June 10.

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