Ottawa Proposes Parking Fee Increases in 2026 Budget Plan

Ottawa city officials have proposed significant parking fee increases at 15 city-owned lots as part of the 2026 budget plan. The proposal, introduced on November 12, 2023, would empower city staff to raise hourly rates at municipal garages to as much as $8, marking a potential 23 percent increase for some locations. Additionally, the daily maximum fee could rise to $26.

While these rate changes will not automatically take effect in 2026, the city will have the flexibility to adjust prices based on seasonal and market demand. Some of the most frequented municipal lots in the city’s core, such as the Clarence Street parking garage, the Dalhousie and Clarence garage, and the Second Avenue lot in the Glebe, are among those that could see adjustments. Waterfront lots at Petrie Island and Mooney’s Bay are also included in this proposal.

Businesses in the Byward Market area are voicing concerns about the potential impact of these increases. They argue that affordable and convenient parking is essential for attracting customers who make short, frequent visits. Pat Nicastro, owner of the popular restaurant La Bottega, expressed his apprehension about the proposed rate hikes.

“I understand the reasoning because right now it’s very cheap to park in the market. Generally, those are the cheapest parking garages around and we’re happy about that,” Nicastro said. “If they want to increase it a bit, I think that’s going to be okay, but let’s really not try to scare anybody from coming down here.”

The city emphasizes that the proposal aims to provide staff with tools to manage parking demand, particularly during peak periods. For businesses that depend heavily on foot traffic, the possibility of steeper parking fees raises significant concerns.

“We need daytime business, it’s important to us,” Nicastro added. “We’ve had some issues, Hudson’s Bay closing, certain other things closing in the area, so we need as much help as we can get. We’re hoping the city keeps these parking spots open, especially at street level; it’s very important for us.”

The Ottawa City Council is set to vote on the final budget on December 10, 2023, which will determine whether these proposed changes will be implemented. As discussions continue, business owners in the Byward Market and other affected areas await clarity on the future of parking in the city.