Ottawa city councillor wants province to review Capital Ward developer donation

Developer withdraws $300K donation to Ottawa Katasa Group has withdrawn its $300,000 donation to projects in Capital Ward after councillors raise questions about the donation.

An Ottawa city councillor is asking the province of Ontario to review a $300,000 donation to Capital Ward by a developer, which became the source of fierce debate at last Wednesday's city council meeting.

Beacon Hill – Cyrville Coun. Tim Tierney told 580 CFRA on Saturday that a donation made by developer Katasa Group raises eyebrows and sets a bad precedent for future funding tied to development projects.

"It's not passing the sniff-test," Tierney said.

"I have never seen anything specifically tied to something like this. It sets a very bad precedent."

After a heated council meeting, councillors voted to divide the donation across all 24 wards, but Tierney says he voted against accepting the money entirely.

"There's a lot of contradictions here and I would like the Ontario government to review this. I think this is very problematic," Tierey said.

"It's an embarrassment for the city – we can't allow that and we've got to go through the proper process. We would definitely love the money, but this is not what you do is tie it to a development."

The "voluntary contribution" to the ward was made as part of a memorandum of understanding negotiated by Capital Ward Coun. Shawn Menard for traffic calming measures and affordable housing. Menard insists the donation was made in good faith, with the developer previously proposing to build several projects in his ward.

While some councillors supported to plan, some took issue with it, scrutinizing the project as a potential conflict of interest and even alleging Menard pressured the builder to pay up to benefit his own ward.

"I have it on good authority that this developer felt pressured by this councillor to make this contribution and understood that it was simply the way that we do things in Ottawa," said Orléans East-Cumberland Ward Coun. Matthew Luloff at the meeting.

"None of that was the case in this matter," said Menard. "Don't say those things unless you have evidence to back that up beyond what's been already provided to councillors in a legal letter because it's egregious."

Others, meanwhile, defended Menard and the donation.

"I think he has done an incredible job and any comments that suggest extortion are just completely offensive and should be withdrawn," said Gloucester-Southgate Ward Coun. Jessica Bradley.

Somerset Coun. Ariel Troster took to Instagram to defend voluntary contributions from developers that support community projects.

"This is not money that had any material benefit for Coun. Menard, it was money that was designed to go into the community," Troster said.

"That is what we are supposed to do as councillors. When we have new development coming into our community, we are supposed to work with developers to ensure that the community benefits."

There is currently no policy in the city on how to handle developer donations, but councillors decided that until council considers a new policy, any future voluntary donations should be allocated citywide.

With files from CTV News Ottawa's Natalie van Rooy