Councillors would be allowed to solicit developer donations under proposed new rules at Ottawa City Hall

Ottawa City Hall is seen in this undated file photo. (CTV News Ottawa)

Ottawa councillors will be allowed to "solicit and/or facilitate" donations from developers for the community's benefit, under proposed new rules at Ottawa City Hall.

A report for Wednesday's Council meeting outlines a proposed policy framework for voluntary donations for community benefits, looking at councillors involvement in donations to the city. Council created a working group to review a policy after councillors raised questions about a $300,000 donation to Capital Ward by developer Katasa Group for traffic calming and affordable housing in the ward.

Staff say the proposed new policy for voluntary donations for community benefits ensure councillors "donation-related activities are separate from decision-making processes and provide for fairness, consistency, transparency and flexibility."

Under the proposed new rules, councillors would be allowed to "solicit and/or facilitate" donations from developers at "arm's length from decision-making processes", including "establishing specific 'blackout period" restrictions for planning and procurement decision-making processes. Staff say during the blackout period, the discussion, solicitation and/or facilitation of donations by councillors is not permitted if that elected official has a role in approving any outstanding planning or procurement matter at committee or council related to the potential donor.

Councillors would also need to "seek pre-approval" from the Integrity Commissioner if they have a "current or foreseeable role in any decision-making process that involves the donor." During an election year, councillors seeking re-election will be prohibited from soliciting/facilitating donations in the period between nomination day and voting day.

All in-kind and service donations for projects, assets or activities will be provided to the ward specified by the donor, unless the donor advises that the intent of the donation is city-wide or for multiple wards.  Staff say if the donor specifies a purpose for the cash donation, it would be deposited in a city-wide fund for the relevant program.

"Staff would manage accepted donations under delegated authority, in consultation with the Member who solicited and/or facilitated the donation, as applicable, and subject to providing all Members of Council with status updates twice per year," the report says.

The outcome of the pilot project will be reviewed as part of the 2026-2030 Governance Review.

"The Working Group notes that the proposed approach would provide for information and data relating to Members’ donation-related activities to be collected within an initial policy framework that provides for transparency, fairness and consistency," staff say in the report.

Katasa Group cancelled the planned donation after council voted to spend the donation in all 24 wards. The company announced in June it will be giving $300,000 to local charities.