Airport hotel tax break hits turbulence at Ottawa's finance committee

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A tie vote at the committee means it\u0027s up to the current city council to make a final decision on the application at its April 12 meeting.

For members who voted in favour of the proposal at FCSC — a high-powered committee bringing together the mayor and most returning councillors from last term — it wasn’t a risk they were willing to take, especially considering the benefits they saw in green-lighting the first application under the newly established airport community improvement plan.

On the other side of the debate was Mayor Mark Sutcliffe, who announced publicly ahead of Tuesday’s meeting that he would be among the nay votes, sticking to a position he struck during the 2022 campaign that challenged the use of community improvement plans over their use of tax relief for eligible business development.Article content

Former Mayor Jim Watson and a majority of members of the previous council ushered in the CIP program, responding to a request for help by the pandemic-battered airport. The pitch then was that the For the 180-room, airport-attached build by Germain, described Tuesday as shovel-ready, the total estimated increase to municipal property tax would be $17.4 million over the 25-year life of the CIP grant. The city would keep $4.4 million of that increase and forgive up to $13.1 million.

 

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