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Ottawa council sets March 3 hearing on proposed business development district after split vote
Summary
The Ottawa City Council voted 3-2 to set a March 3 public hearing on a proposed Business Development District that could allow a sales tax increase to fund the waterfront and other projects; opponents warned the district could push Ottawa’s sales tax to 8.5%.
The Ottawa City Council voted to set a public hearing on March 3, 2026, for a proposed Ottawa Business Development District No. 1 that would enable a sales-tax increment to help fund waterfront redevelopment and related projects.
Mayor Hasty introduced the ordinance proposing the redevelopment plan and the hearing date; the motion to set the hearing passed with Commissioners Thomas G. Ganiere, Brent F. Barron and Mayor Hasty voting aye and Commissioners Wayne E. Eichelkraut Jr. and Marla K. Pearson voting no.
The measure drew debate about the potential size and local impact of any tax increase. Commissioner Wayne E. Eichelkraut Jr. said the district as structured could raise the combined sales tax to 8-1/2 percent, a rate he said would be the highest in the surrounding area. Mayor Hasty said the city would have flexibility in the increase, saying the tax "can be in 1/4, 1/2, or a full percentage" and that revenues would be directed to waterfront work.
Supporters on the council and staff framed the district as a financing tool to move long‑promised projects forward, including waterfront improvements and related amenities. Opponents argued the city should be cautious about raising the local sales-tax burden and urged more detailed cost estimates and staging before committing to a tax increment.
Commissioner Marla K. Pearson and Commissioner Wayne E. Eichelkraut Jr. emphasized fiscal prudence; Pearson noted pre‑budget discussions about the amphitheater and additional fire station staffing and costs, saying building several projects at once could raise total costs from about $30 million to $40–45 million.
The ordinance sets the hearing for March 3, 2026, at which the council will receive public comment and further details before any final vote on creating the district or setting an exact tax rate.
Next steps: staff will publish notice and present detailed project cost and tax-rate scenarios at the public hearing scheduled for March 3.
