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BUSINESS OUTLOOK

BUSINESS OUTLOOK

These are city-building projects … that are going to draw talent to Ottawa (and) bring visitors into town.

– IAN FARIS, PRESIDENT AND CEO, OTTAWA BOARD OF TRADE

CAPITAL BUILDING Megaprojects set to reshape Ottawa, help attract top talent

BY LISA THIBODEAU

lisa@obj.ca

The sight of cranes, dump trucks and scaffolding has become a nearubiquitous feature of Ottawa’s urban landscape in recent years as new homes, commercial spaces and amenities are constructed to meet the needs of a city that’s projected to surpass one million residents in 2019.

However, many of these planned and under-construction initiatives are more than just growth-related infrastructure. They’re transforming how and where Ottawa residents live, work and play, improving commuting times and changing how visitors view Canada’s capital.

Among the most eagerly anticipated projects is the first phase of Ottawa’s light-rail line, which is poised to open this summer. Early construction work on its second phase is already underway. This expansion will include a link to the Ottawa International Airport, which itself is planning a $25-million overhaul of its passenger terminal that will also see a new hotel connected directly to the facility.

Elsewhere, the $2-billion effort to construct a new Civic Hospital campus on the edge of the Central Experimental Farm will rank among the largest construction projects in the city’s history.

And, despite setbacks, the National Capital Commission remains committed to redeveloping LeBreton Flats.

In addition to changing Ottawa’s outward appearance, these megaprojects have the potential to attract skilled workers and tourists, argues Ian Faris, the president and CEO of the Ottawa Board of Trade.

“These are city-building projects … that are

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LRT Phase One

Top-ranked 29%

Top five 65%

INFRASTRUCTURE INVESTMENTS

Ottawa Business Growth Survey respondents ranked the top infrastructure investments or major developments they believe will have the greatest positive impact on the economy. >

(The first figure indicates the percentage of respondents who selected the project as their top-ranked selection. The second figure is the percentage of respondents who included it among their top five selections.)

SECTOR SNAPSHOT: TOURISM

While the Canada 150 celebrations in 2017 may have set the bar high for Ottawa’s tourism sector, the subsequent dip in visitors to the capital in 2018-19 was nowhere near as steep as some had feared. And, according to the Conference Board of Canada, Ottawa will see 11.2 million visitors by the year’s end, a slight increase from 2018.

Jantine Van Kregten, communications director at Ottawa Tourism, says the 2017 celebrations bolstered the city’s reputation as a destination for major events. There have also been several upgrades of key Ottawa destinations, such as the renovations to the Canada Science and Technology Museum, that help attract visitors and keep people coming back.

One of the trends shaping the sector is demand for more personalized vacations and nontraditional tours.

“Visitors want customization; they want to personalize the experience so that they aren’t doing exactly what everyone else is doing,” says Van Kregten. “The city has created rural bike tours, for example … which can be customized to your needs.”

Looking ahead, Van Kregten says Ottawa is in a very good position for 2020, with more large events in the works that will generate more economic activity in the city.

“Tourists spend more than $2 billion in Ottawa. That is money that is earned elsewhere and spent and left here,” she says. “That enhances our quality of life ... it’s a great industry to be in.”

JANTINE VAN KREGTEN, DIRECTOR OF COMMUNICATIONS, OTTAWA TOURISM Redevelopment of LeBreton Flats

Top-ranked 15%

Top five 63%

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PHOTO COURTESY THE NATIONAL CAPITAL COMMISSION

3

Greater spending on road resurfacing/repair

Top-ranked 12% Top five 55%

LRT Phase Two

Top-ranked 10%

Top five 70%

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Relocating to be closer to light rail: Within the next five years, would you consider...

15%

11%

79%

MOVING YOUR BUSINESS TO BE CLOSER TO A LIGHT-RAIL STATION

MOVING WHERE YOU LIVE TO BE CLOSER TO A LIGHT-RAIL STATION

NEITHER

Highway 417 widening

Top-ranked 10%

Top five 53%

6

5G Network

Top-ranked 5%

Top five 38%

5

New interprovincial bridge or tunnel

Top-ranked 6%

Top five 43%

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going to draw talent to Ottawa (and) bring visitors into town,” he says. “(They will) impact positively on how Ottawa is viewed elsewhere. We are not a sleepy government town anymore.”

OTTAWA REIMAGINED

Earlier this year, several local business and community leaders came together to help strategize the best approach to these megaprojects. The task force will work to drum up community support and get people excited about this new phase in Ottawa’s history while providing meaningful input into the evolution of their city.

“We can be (a) world-class mid-size city, and people are starting to believe it and demand things that are world-class,” says Shawn Hamilton, a senior vice-president at real estate services firm CBRE and managing director of its Ottawa office.

Indeed, some of the results of this year’s Ottawa Business Growth Survey suggest that local business leaders are paying closer attention to the impact of citywide issues on their own operations. When asked to rate several issues, the percentage of respondents who said transit and transportation issues are getting worse jumped by double digits.

While that may reflect, in part, the beating that local roads took over a particularly harsh winter as well as disappointment over the delays in opening light rail, it also underscores the importance of modern rapid-transit and transportation infrastructure to the business community.

But it’s not just so-called “hard” infrastructure such as roads and rail lines that stand to pay dividends. New urban developments and civic amenities are also drawing significant attention for their potential to shape the capital.

For example, moving Ottawa’s central library to LeBreton Flats will create an anchor in a new community that will effectively expand the city’s downtown to the west. The 216,000-square-foot building will be located near the new Pimisi LRT station, connecting it to the rest of the city. Once open, the library is expected to receive nearly 5,000 visitors per day, up from the 2,000 who currently visit the existing Metcalfe Street branch. The project, expected to cost around $193 million, is scheduled to be completed in 2024 and promises to feature a world-class design.

“It will become a strong community hub … welcoming residents and visitors alike,” says

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Expansion of the Ottawa International Airport Top-ranked 5% Top five 43%

New Civic Hospital campus

Top-ranked 4%

Top five 35%

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New central library

Top-ranked 1%

Top five 11%

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DND’s relocation to the Carling Campus

Top-ranked 2%

Top five 14%

PHOTO BY LOURI GOUSSEV

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Danielle McDonald, the CEO of the Ottawa Public Library. “It will be the centrepiece of the future LeBreton Flats development – one of the most important urban development projects in this city in a century.”

The broader LeBreton Flats neighbourhood still retains its potential as a vast swath of undeveloped urban land, despite the collapse of plans to redevelop the site with a series of condos and an NHL arena. The National Capital Commission is moving ahead with a new process to redevelop LeBreton Flats and announced plans in March to start with a piece of land next to the new central library building.

Together, the projects will bring thousands of new residents and visitors to a long-neglected corner of central Ottawa.

“LeBreton Flats will change how the city views its public space (and) the library has always been a hub for all Ottawans,” Hamilton says. “These things appeal to people, whether they’re at play, visiting, creating a new life or building their existing life.”

TALENT ATTRACTION

In several sectors, Ottawa companies are global leaders in emerging fields.

Autonomous vehicles is one such sector, which is being supported by a 16-kilometre testing facility that’s touted as the first of its kind in North America. Ottawa is already home to more than 70 companies involved in various aspects of the autonomous vehicles industry, including heavy hitters such as BlackBerry QNX and Ford.

To succeed, these companies need top talent. For several years, the Ottawa Business Growth Survey has found that access to skilled workers is among the top issues facing local companies.

In many cases, a city’s livability can feature heavily in a pitch to prospective employees and help companies attract top talent.

“Ottawa is recognized for its quality of life,” says Micheal Burch, managing partner at Welch LLP. “When you add in these (projects), it definitely shows that we are an expanding and developing city.”

Hamilton also highlights the sense of momentum that these projects are bringing to Ottawa.

“All of these will contribute to the economy, culture, vibe and desirability of Ottawa,” he says. Whether it’s viewed through the lens of attracting talent, economic output, tourism or quality of life for existing residents, “these things really matter,” he says.

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