City meets LRT settlement deadline

The city has settled the lawsuit resulting from the cancellation of the north-south light-rail transit project, by shelling out $36.7 million by the Sept. 30 deadline to the contractors, Siemens/PCL/Dufferin.

It's unclear, however, where the money came from and how ultimately it will be recouped.

When city council approved the payment on Sept. 9, it instructed city staff to come up with proposals to fund the settlement in the 2010 budget.

Somerset Coun. Diane Holmes says on her website she is angry about the options available.

Money will come from either "selling a portion of Ottawa Hydro, postponing capital projects for two years or adding the amount to the property taxes," the website says.

Had the fully approved and financially secure plan gone ahead as scheduled, the LRT would have been completed sometime this fall.