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A $300,000 charitable donation by Developer Katasa Group will go ahead after all.
The Gatineau-based developer said Thursday it had decided to make $100,000 donations to three Ottawa-area charities yet to be named.
In January, Katasa withdrew from a memorandum of understanding brokered with Capital Ward Coun. Shawn Menard to spend $300,000 on traffic-calming and other measures to offset the impact of its 22-storey tower at the intersection of Carling and Bronson avenues.
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The deal outraged other councillors, who wanted the money shared across the city. Orléans East-Cumberland Coun. Matthew Luloff likened it to a “slush fund” and warned the deal “didn’t pass the smell test.” Mayor Mark Sutcliffe said he wanted similar deals banned, preferring donations be made to third-party groups rather than paying for measures the city offers itself.
In the end, that was what Katasa decided to do.
In a statement, Katasa partner Katherine Chowieri said the company “cannot overstate our regret for the misconception about our intended $300,000 donation to the City of Ottawa. As we said then, we genuinely believed this type of donation was common and part of the City of Ottawa’s process for approving land developments. We now know, of course, that it is not.”
But Chowieri said the company still wanted “our donation to have a meaningful and lasting impact on the City of Ottawa.”
“That’s why we are announcing our plans to support three Ottawa charities, with $100,000 each. The foundation of our city is its charitable sector, and making tangible change starts with empowering and investing in these organizations and the hard-working people who represent them on the front lines.”
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She said more details on the donation would be made later in the summer, adding she hoped it would rebuild community trust in the company.
“The events earlier this year were regrettable. For that, we are sorry. Our announcement today builds upon our relationship with the City of Ottawa and the residents who call this great city home,” Chowieri said.
Menard said Thursday that he was pleased that Katasa would be giving money to charity, and he defended MOUs like the one he negotiated with Katasa as “common practice” that could lead to better outcomes for a community.
“My job is to listen and to advocate for my residents and to try to ensure that new development leads to benefits for both existing and future residents — like affordable housing and traffic safety,” Menard said.
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