Ottawa to spend $95 million to buy east end landfill

The Capital Region Resource Recovery Centre is located at the intersection of Highway 417 and Boundary Road in Ottawa's east end. (Leah Larocque/CTV News Ottawa)

Ottawa taxpayers will spend $95 million to purchase a private landfill in the city’s east end, with the purchase funded by an increase in the solid waste fee.

City staff told Council Wednesday morning that the city has “successfully concluded the necessary agreements and land acquisition” for the Capital Region Resource Recovery Centre (CRRC), located on Boundary Road between Devine Road and Highway 417.

Public Works General Manager Alain Gonthier said the city spent $95 million to acquire the landfill, plus $470,000 for associated land transfer taxes and $422,000 in HST costs.

“The city was successful in terms of its bidding process,” Gonthier said. “We have closed the deal now.”

Council voted Jan. 14 to direct City Manager Wendy Stephanson to negotiate, enter into and finalize an agreement to purchase the Capital Region Resource Recovery Centre.

“Through the contemplated transaction, the City would acquire the eight parcels of land that compose the CRRRC and the associated permits required in order to operate the CRRRC in accordance with provincial requirements,” staff said in the report.

According to the report, the city will acquire the eight parcels of land that compose the Capital Region Resource Recovery Centre and the associated permits required to operate the landfill in accordance with provincial requirements. Gonthier said four leases on the property have been “terminated.”

Staff say the final sale price is lower than the landfill valuation, which was estimated at a net value of $110 million to $140 million.

The $95 million purchase will be funded through debt, with debt servicing covered by the solid waste fee. The debt-servicing costs would begin in 2027, with an annual fee of $5.5 million.

The long-range financial plan shows the solid waste fee will increase an additional $4 above the plan’s projections in 2028, $16 in 2029, $23 each year between 2030 and 2032, $20 in 2033 and $13 in 2034.

Ottawa residents paid $294 for the solid waste fee in 2027, with the fee increasing to $323 in 2028, $371 in 2031 and $394 in 2024.

The Capital Region Resource Recovery Centre has approval to accept 450,000 tonnes of waste a year and has an expected lifespan of approximately 30 years.

City staff have described the sale of the Capital Region Resource Recovery Centre as a rare opportunity, noting it takes 15 years to secure regulatory approvals for the landfill and “given Ontario’s available landfilling space is expected to run out within the next decade.”

Ottawa’s current municipal landfill, the Trail Road Landfill on Trail Road, is expected to reach capacity in the next 10 to 15 years. The Solid Waste Master Plan has implemented several options to extend the life of the landfill, including a new three-item garbage limit for households, the banning of industrial, commercial and institutional waste from the Trail Road dump, and using private landfills. A waste-to-energy incinerator has been identified as one of the best options to consider for future garbage needs.

Council will decide in 2027 what will be Ottawa’s future long-term waste management option.

“This decision to acquire the site does not impede the work we’re currently doing looking at different technologies,” Gonthier said.

“The reality is basically that any option that we are considering will always require some sort of landfill capacity. So this, in fact, puts the city in a viable position.”