Ottawa city council votes against airport hotel tax break

A plan to give a multi-million dollar tax break to a company building a hotel at Ottawa’s airport crash-landed at city council, Wednesday, with councillors voting overwhelmingly against the idea.

The initial proposal sought to waive $13 million in property taxes, which was later reduced to $3.6 million. However, councillors voted 16-9 against the tax break, despite arguments made in its favour.

Orleans East Councillor Matt Luloff was among those in favour of the tax break, arguing that it would help businesses grow and lower residential property taxes. He also opined about what defeating the proposal could do to business confidence.

“If we keep laying out the only tools that we can legally use, if we keep rolling out the red carpet, only to pull it out from underneath applicants that meet every single criteria, we send a signal that Ottawa is not a good place to do business,” said Luloff.

However, the majority of council members disagreed, with some suggesting that the tax break would set a bad precedent for other businesses seeking similar treatment.

Ottawa’s airport authority issued a statement, pledging to try to proceed with an airport hotel without the tax break.

“The Ottawa International Airport Authority is very disappointed in the outcome of today’s vote at Ottawa City Council,” the statement began.

The agreement was signed before the start of the pandemic, the airport explained, and, “the lease is still in place for a few more weeks should Germain decide to pursue this business opportunity in the context of today’s financial realities – and it is their decision. That said, the Authority will assist as much as possible, provided it remains in our mutual best interest.”

The airport says it won’t abandon its vision of becoming an air travel hub, but that it believes the loss of the tax incentive could make that goal more challenging.