City looks to purchase prime land near Algonquin College for steep discount

City of Ottawa staff are recommendingthe purchase of the Mary Pitt Centre in Nepean, a property worth about$92million, for just a fraction of the cost.

In a newly released report addressed to thefinance and corporate services committee, staff asked council to approve thepurchase of 100 Constellation Dr.and the surrounding propertyfrom current ownerArnon Corporation.

The 6.88 hectares of land includes the building that houses the Ottawa Public Health immunization clinic, the Ontario Court of Justiceand others, as well as the surrounding parking lots.

"The Mary Pitt Centre, is the largest administrative centre in the city portfolio and integral to the city's accommodation strategy," reads the report.

The estimated property value is between $84 million and $92 million,but the purchase would only cost the city $12.2million, including closing costs.

It's a steal for the city, which negotiated the price tagin 2003 when it obtained the option to buy the land after taking over the lease from Nortel Networks, a former Canadian telecom giant that went bankrupt.

Up until now, the city has been renting space in the building there for $6.3 million a year. Staff said even with an estimated $1 million in annual expenditures, buying the land would save the city an estimated $5.3 million every year.

Staff also warned that the current lease is set to end by the end of Feb. 2026, with no option to renew and with no guarantees of securing a new lease, reads the report.

Buying the land "represents a secure path forward to ensure uninterrupted occupancy and service delivery."

Possibilities for development

Beyond that,College ward Coun. Laine Johnson said the property offers a number of development opportunities that could benefit the community.

"It's massive and it's a really good deal for the city and it's going to be truly transformative for this community," she said.

Johnson said some possibilities include developing the land for housing, which could include units at market rent and others for low-income residents.

"[It could be] atrue mixed community for housing," said Johnson.

With more density also comes more business opportunities, she said, adding that the community is in need of smaller businesses, not just big box stores or chain restaurants.

The property is also located near Algonquin College. Staff wrote owning the land would also "provide added benefits to the City, which will be defined in the new Algonquin Station Secondary Plan, set to launch later this year."

The city would officially take over ownership of the property by the end of February next year.

The report will be formally discussed atthe city's finance committee on June 4, before it is presented to council a week later.