No more extensions in LeBreton mediation, Heritage Minister says
James Bagnall, Ottawa Citizen
Updated: February 26, 2019
It seemed like loads of time. In mid-January the National Capital Commission granted the feuding Rendezvous LeBreton partners an extension until Feb. 28 to reach a deal on the 20-year, $4 billion project to redevelop LeBreton Flats.
Turns out, there was too much time. It’s rare that a mediation effort — such as the one led here by former Ontario chief justice Warren Winkler — lasts much longer than a day or two. Often it takes the threat of a real deadline to force changes in position. And now we have what looks to be a firm cutoff date.
“The NCC was very clear,” Heritage Minister Pablo Rodriguez said Tuesday. “There’s a deadline for February 28th and there will be no extension.”
The main issue, as it has been for some time, is how the project’s extensive risks and potentially large profits should be shared. Shortly before the relationship between Ruddy and Melnyk degenerated late last year into $1.7 billion in suits and countersuits, Melnyk had been willing to forgo his share of the profits in exchange for a rent-free arena for his Ottawa Senators. Ruddy has been insisting that Melnyk should pay arena rent on commercial terms.
If there’s no agreement Thursday between Trinity Development founder John Ruddy and Eugene Melnyk that would spell the end of their Rendezvous LeBreton partnership. It would also free the NCC to launch a new process for redeveloping the Flats. The NCC warned six weeks ago that it had plans already in place, but would wait to see if Winkler’s mediation proved successful.
Rodriguez made clear Tuesday the NCC is still committed to a transformative project on LeBreton Flats. Whether this would mean starting a competitive bidding contest from scatch is an open question. Such a turn would give members of Devcore Canderel DLS — the runners-up in the contest to redevelop LeBreton — a shot at taking part, perhaps in partnership with either Ruddy or Melnyk.
But we may yet be getting ahead of ourselves. Perhaps Thursday’s deadline will finally prompt Ruddy and Melnyk to cut a deal. It’s just wise not to count on it.
https://ottawacitizen.com/business/l...-minister-says