Sutcliffe strikes optimistic note for 2025, despite looming challenges

In his annual state of the city address on Tuesday, Ottawa Mayor Mark Sutcliffe painted a mixed picture for the nation's capital in 2025, pointing to significant challenges as well as reasons for optimism.

The mayor expressed concern over a potential trade war between Canada and the United States, following President Donald Trump's recent comments about imposing tariffs.

"That trade war could create significant uncertainty and even economic damage throughout Canada, including here in Ottawa," he warned.

Sutcliffe made the comments during a speech in front of the city's business community at an event hosted by the Ottawa Board of Trade at Rogers Centre. 

The board of trade's president and CEO urged local businesses to use their connections south of the border as the city considers responses to any potential fallout from Trump's presidency.

"We are an important trading partner for their economy as well," Sueling Ching told reporters on Tuesday. "There are so many economic, cultural ties between our two countries, and we want to see that continue to flourish."

'Historic challenges' coming

Sutcliffe acknowledged the "historic challenges" facing downtown Ottawa and the ByWard Market, noting the federal government's plans to reduce its office space by up to 50 per cent.

"We can no longer count on federal government employees to fill that gap," he said, calling for greater collaboration between the city and the federal government to make strategic use of surplus properties, alongside the private sector. 

Sutcliffe also warned of the threat of job cuts in the federal public service, the number one employer in the city.

"I think we knew coming into 2025 that there was a risk that there would be job reductions in the federal public service, and it's a great concern to the local economy," he said.

The mayor also mentioned the uncertainty over who will form the next government, and their agenda. Sutcliffe said whoever is in power needs to do their part to ensure Ottawa's economy doesn't unjustly bear the brunt of those decisions.

He also urged the continuing diversification of Ottawa's economy to offset potential setbacks in the public sector.

"Economic growth is vitally, vitally important for our future as a city, because economic growth is what drives progress for all our residents," he said.

Ching said strengthening the economy locally needs to be a top priority. She highlighted the need for continued investment in infrastructure, removing interprovincial trade barriers and developing programs to help local businesses expand into new markets beyond the U.S.

"We need to really make sure that we're removing all the barriers that we can so that we have a competitive business environment and that people understand what the lifestyle is here."

Mayor points to successes, optimism

Overall, Sutcliffe expressed optimism about Ottawa's future, highlighting the city's strengths and projects underway.

He noted the city has reopened the expanded Trillium Line, connecting south Ottawa to Carleton University, the airport and the east-west Confederation Line. Saturday service was recently added on the Trillium Line, and seven-day-a-week service will follow soon.

Sutcliffe also highlighted more international flights at Ottawa's airport and the Lansdowne 2.0 redevelopment.

He acknowledged the growing number of vulnerable people in the community including those experiencing homelessness, the opioid crisis, mental illness and food insecurity.

Add to that the ongoing influx in migrants, which Sutcliffe said could get worse if refugee claimants leave the United States to seek asylum here. 

The mayor also addressed the city's housing challenges, announcing a new task force to streamline the approval process for new housing projects. He noted that while the city approved more than 50,000 housing units between January 2023 and September 2024, only 8,300 had advanced to the building permit stage.

Despite these challenges, Sutcliffe expressed confidence in Ottawa's ability to overcome them, emphasizing the city's history of collaboration and its potential.

"We can be hopeful, because we know in Ottawa, we work together," he said.