Last year, Nepean-Carleton MP Pierre Poilievre further fueled the community's economic momentum by bull-dogging a decision from federal officials to relocate the RCMP headquarters from Alta Vista to the state-of-the-art, 900,000 square-foot JDS Uniphase campus on Merivale Road at Prince of Wales. The prospect of 4,000 federal employees working in Barrhaven's midst has pleased most business owners, but left some of them scratching their heads about exactly how the sudden influx of workers will impact area business.
Mr. Poilievre hosted a forum last Tuesday for more than 125 business people, bringing together community, business and political leaders, including the mayor, to discuss the mechanics and implications of the RCMP move, which commenced on Jan. 1 with the arrival of 40 project team members who will prepare the building for the gradual arrival of the other 3,960 RCMP employees by 2010.
The MP called the RCMP relocation "the most important economic event in the history of this part of the city" which will serve as an "economic cog in Ottawa's growth."
Minto president and CEO Roger Greenberg, whose company currently owns the JDSU campus and adjacent business park, welcomed the RCMP as new "long-term tenants" and described the relocation negotiations as "an extraordinarily lengthy process."
Mr. Greenberg said Minto purchased JDSU in June 2005 "at a fairly substantial discount" after the high-tech firm's plans for a large 24/7 facility were nixed after the sector's bust in 2001. In subsequent negotiations with JDSU, Minto agreed to construct a new 125,000 square-foot building in the Barrhaven area for the company's Ottawa employees.
The RCMP will occupy the JDSU campus at a rental rate of $8 per square foot, fixed for 25 years, at which time the federal government can buy the campus for $1. Minto will continue to provide property management services, and will work with the RCMP transition team and Public Works to complete the extensive renovations needed for full occupancy. The remaining JDSU employees will move to their new facility when it is completed in the first quarter of 2008.
Minto will now begin to "market aggressively" to develop up to 700,000 square feet of additional office space in the business park, according to Mr. Greenberg, who noted that the RCMP have the opportunity to expand the JDSU facility or build a parkade, though no plans are currently underway.
Andrea Steenbakkers, executive director of the one-year-old Barrhaven BIA, will have a major role in rallying the business community.
Ms. Steenbakkers unveiled the preliminary findings of a BIA-sponsored "retail commercial market analysis" conducted by Corporate Research Group. The analysis paints a glowing picture for Barrhaven businesses and property owners. The area's population is projected to increase to 200,000 people by 2016, mostly in the form of young families with high household incomes. In five years, she said, market spending potential will almost double, from the current $1.2 billion to $2 billion.
Ms. Steenbakkers also said the study confirms excellent potential for business growth, particularly in the apparel, furniture, personal services and department store sectors. "We found that Barrhaven residents still make two-thirds of their purchases elsewhere," she said. "The establishment of an employment node like the RCMP headquarters will change consumer habits and business opportunities."
She said the business community needs to plan now for future growth, adding that the phased relocation of RCMP employees gives local businesses the luxury of time to prepare. "We need to promote the entire business community -- including a downtown -- as an attractive destination for consumers," she said. "We need to change that sleepy suburban perception and let people know Barrhaven is a great place to live and work."
One of her major concerns is "to improve our commuting and transportation problems."
Mayor Larry O'Brien promised to get back to the community soon about the Strandherd-Armstrong Bridge project, considered by many to be a key element of an improved transportation plan for the rapidly growing area. Businesses and residents are counting on the construction of the bridge to improve access to Barrhaven from east of the Rideau River and to fix the nightmarish traffic snarls at Hunt Club Road to the north and Manotick to the south -- the only existing east-west crossings over the river. With the recent cancellation of the LRT project, many people are worried about the fate of the bridge project. Ms. Steenbakkers, who is lobbying frantically to be on the mayor's transportation task force, says Barrhaven business interests must be factored into decision-making.
Other speakers downplayed the effect the cancelled LRT project would have on the bridge's construction. Mr. Poilievre said city council's December decision to nix the LRT will have "very little impact" on Barrhaven's anticipated economic growth and noted the bridge was always a "stand-alone" project not tied to the fate of the LRT. Coun. Jan Harder said construction of the bridge was a question of when, not if, but conceded that work would already be underway had the LRT initiative gone ahead. In the meantime, Ms. Harder will urge council to get on with the many other facets of transportation planning -- including road widenings, OC Transpo re-routing, and environmental assessments.
Ms. Steenbakkers said the retail commercial market analysis" is nearly finished and will be distributed to BIA members soon.
By Jeff Esau
Special to the Ottawa Business Journal