The National Capital Commission has successfully negotiated a landmark lease agreement for a vacant property at 1460 Riverside Drive in Ottawa, partnering with Ottawa Community Housing and the non-profit real estate developer Nesting Ground. This deal represents the inaugural transaction for an Ottawa-Gatineau property listed on the federal Canada Public Land Bank, a significant milestone in efforts to convert underutilized federal lands into much-needed affordable housing.
Historic Lease Agreement for Riverside Drive Property
Approved earlier this month, the lease spans an impressive 99-year term for the 0.89-hectare grassy lot situated at the intersection of Riverside Drive and Industrial Avenue. This strategic location places it less than a kilometre from the Train Yards shopping centre and approximately 600 metres from Hurdman Station, offering proximity to public transit, retail establishments, hospitals, and green spaces along the Rideau River.
First Completed Transaction from Federal Land Bank
This lease marks the very first completed transaction for a federal property in the National Capital Region that was included on the Canada Public Land Bank. The land bank, launched by the federal government in August 2024, initially featured 22 Ottawa-Gatineau properties, with that number subsequently growing to 36. Until this Riverside Drive agreement, none of these properties had been successfully removed from the list through development agreements.
The National Capital Commission has emphasized its commitment to supporting government initiatives aimed at identifying underutilized land that can be developed to increase housing availability, with particular focus on affordable housing options within the National Capital Region.
Substantial Housing Development Planned
According to government registry information, Ottawa Community Housing Corporation and Nesting Ground will serve as co-tenants on the property. Their proposed development project is substantial in scope, planning to include at least 220 residential housing units. Importantly, a minimum of 30 percent of these units will be offered at below-market rates, specifically priced at less than 80 percent of Ottawa's median market rent.
Graeme Hussey, president of Nesting Ground, has previously expressed urgency regarding the government's efforts to transform federal properties on the land bank into housing, stating that authorities "can't move fast enough" to address the pressing need for more housing options.
Ongoing Development and Future Prospects
While the National Capital Commission referred questions about the lease agreement to the Canada Mortgage and Housing Corporation, and neither CMHC nor the development partners immediately responded to requests for comment, this transaction establishes an important precedent. It demonstrates tangible progress in converting federal properties from the land bank into viable housing developments, potentially paving the way for similar agreements involving the dozens of other federal properties across the country that the government has identified for housing development purposes.
