The City of Ottawa has signed a deal to build a $220-million arts centre and town centre in the Orléans neighbourhood with both public and private funding.

The partnership will create the biggest construction-economic development project in the history of Ottawa's east end, Mayor Bob Chiarelli said at a news conference on Tuesday.

The proposed Orléans art centre is part of a $220 million public-private partnership deal signed by the City of Ottawa Tuesday.
The proposed Orléans art centre is part of a $220 million public-private partnership deal signed by the City of Ottawa Tuesday.

Chiarelli and Orléans Coun. Bob Monette signed a memorandum of understanding with Richard Abboud, president of Orléans Town Centre Partnership (OTCP), the consortium of private businesses that successfully bid for the private involvement in the partnership.

The deal commits both partners to building the project quickly. The city is contributing $36.8 million, with the rest from the private sector.

The development will include an arts centre with a 500-seat performing-arts hall, a 100-seat studio theatre and a municipal art gallery, a hotel, office and retail space, two seniors residences and a variety of other housing. Plans were unveiled at an open house on Sept. 12.

According to a presentation by Rob Mackay, the city's manager of strategic projects, the development addresses a long-standing need for an east end arts centre and will benefit 50 arts groups that are scattered in that part of the city.

The city also predicts the project will create 300 jobs and $75 million in direct and indirect economic benefits.

"I think you'll see a huge influx of economic development in the future, and all we needed was a spark plug to get it going, and I think we got it today," Monette said.

Chiarelli denied the arts centre announcement might be timed to aid his bid for re-election as mayor in less than two months.

"This has been long overdue, and the last thing the people of Orléans want to do is have this project delayed," Chiarelli said.

The arts centre will be built on the vacant lands near the Place d’Orléans Shopping Centre in east-end Ottawa. The entire project will occupy about 7.5 hectares and be developed in three phases.

The first phase is scheduled to begin construction next year and be completed by March 2009.

The project still needs city council approval.