Council divided on prospect of $150M hospital contribution

Residents `fear' this funding request could end up on property tax bills

A possible $150-million municipal contribution to the Civic Hospital project had council divided on Wednesday, with critics questioning why property taxpayers would pay for a provincial responsibility.

With a 15-8 vote, council approved a staff report recommending a study into where the money could be found, but several councillors didn't like that The Ottawa Hospital was coming to city hall with a massive funding request for health care.

However, the hospital has few options to fund its own $700-million contribution toward a $2.8-billion hospital on land at the Central Experimental Farm.

The province has committed $2.1 billion for the facility.

The Ottawa Hospital Foundation has launched a $500-million fundraising campaign. The hospital expects to find an additional $50 million from retail revenues and other financial strategies and hopes city hall will provide the remaining $150 million.

City finance staff will bring recommendations to council next year.

Mayor Jim Watson, who won't be part of the decision since he's not seeking a new mandate in the October municipal election, said he hopes a municipal contribution wouldn't be heaped onto property tax bills. The next council might have to accept that option if it means getting a world-class health facility for Ottawa, Watson said.

Watson called it a “test of leadership” for council.

But councillors who voted no to the framework for finding the $150 million warned that property taxpayers don't want to pay more, especially for something that's a provincial responsibility.

“I believe this continues the disturbing trend of the province off-loading the cost of health care by stealth,” Coun. Rawlson King said.

On the other hand, Coun. Keith Egli said he didn't understand why colleagues were spending time debating the report.

“I trust staff to be creative in their review of what the options are,” Egli said, warning the city against “dithering” and jeopardizing the Civic project's priority status in the provincial queue.

The city already pays for local health care services, such as Ottawa Public Health and the Ottawa Paramedic Service, whose costs are both shared between the provincial government and the municipal government.

Coun. Carol Anne Meehan tabled a motion asking that staff look into a lottery to help raise funds for the municipal contribution. Council referred the lottery idea to staff.

Meehan said residents “fear” what a municipal contribution to the hospital would mean for property taxes.

There are still hard feelings in the public and some parts of council over the hospital site location at the Experimental Farm.

Coun. Catherine McKenney, who's running for mayor in the October municipal election, decried the construction of a parkade and removal of hundreds of trees for the development.

The hospital has said it will plant five new trees for every tree removed for the new facility.

“It feels today that we're being pushed into a corner,” McKenney said. “We are being almost threatened with not getting a hospital unless we agree to look for more funding from our property tax base.”

The hospital has said the Civic project could drop in the province's priority list if all the funding isn't locked up.

Coun. Jan Harder, who called on colleagues to give finance staff an opportunity to find ways for the city to contribute funds, didn't have time for any complaints about the location, trees and parkade.

“Take your trees and your freaking parking lot and shove it where

It feels today that we're being pushed into a corner. We are being almost threatened with not getting a hospital unless we agree to look for more funding from our property tax base.

the sun doesn't shine,” Harder said.

Voting in favour of the staff report were Eli El-Chantiry, Allan Hubley, Cathy Curry, Matthew Luloff, Mathieu Fleury, Jean Cloutier, Catherine Kitts, George Darouze, Glen Gower, Laura Dudas, Scott Moffatt, Tim Tierney, Harder, Egli and Watson

Voting against the report were Shawn Menard, Riley Brockington, Diane Deans, Jeff Leiper, Theresa Kavanagh, McKenney, Meehan and King.

Coun. Rick Chiarelli wasn't present for the vote.