An Ottawa developer plans to turn a Moodie Drive auto repair shop and outlet store into a new six-storey hotel and restaurant at a cost of about $18 million, according to municipal documents.
Colonnade Bridgeport, which manages some 5.4 million square feet of commercial space locally, is applying for a break on its future property tax bill at 300 Moodie Dr. through a community improvement grant.
The municipal program is aimed at encouraging redevelopment projects in specific parts of the city, such as Bells Corners and Orléans. Developers don’t receive an up-front cheque; instead, they receive a grant based on the additional taxes arising from the higher assessed value of the redeveloped property.
Colonnade Bridgeport currently pays $35,576 annually in property taxes for 300 Moodie Dr. The redevelopment would push that to $302,384.
On Tuesday, the city’s finance and economic development committee is scheduled to consider Colonnade Bridgeport’s CIP application, which would see the Ottawa-based developer receive a grant of up to $2.32 million over 10 years, or 75 per cent of its incremental property tax bill.
According to a staff report, the new development would include a 124-room hotel and a 3,000-square-foot restaurant with drive-through. Combined, the hotel and restaurant are expected to employ up to 160 full and part-time staff, according to the city report.
The property is located at the north end of Bells Corners, just down the road from the former Nortel campus that’s being turned into the new home of the Department of National Defence.
The councillor for the area, Rick Chiarelli, says this could spur new economic activity in the neighbourhood.
“The move of DND headquarters to Moodie Drive creates the opportunity for Bells Corners to supply the service needs that the move creates,” he said in a statement.
A separate Bells Corners CIP application will also be considered at Tuesday’s meeting.
First Bay Properties, an Ottawa-based commercial real estate investment firm, is proposing to replace a vacant restaurant and Cash Money cheque cashing retail outlet at 2015 Robertson Rd. with three commercial properties including a new KFC restaurant and a Gear Head Canada retail location.
First Bay is also applying for a 75 per cent grant on its incremental property taxes, which would add up to $178,000 over 10 years.
900 Albert St.
Elsewhere in Ottawa, a consortium of developers is applying for a property tax break under a separate program.
Because the project at 900 Albert St. involves cleaning up contamination left over from the property’s former use as a rail yard, the consortium is looking for up to $8.26 million in grants over 10 years under the city’s brownfields redevelopment community improvement plan to help offset the cleanup costs and development charges.
In August, InterRent REIT purchased a one-third share in the project for $14.2 million.
Tuesday’s staff report pegs the construction value of the three towers, which the developers previously said would be 59, 55 and 50 storeys, at $400 million.