New downtown music venue’s potential economic impact pegged at $1.2B, NCC says
David Sali, OBJ
June 12, 2024 4:13 PM ET
Bill Leonard, the NCC’s vice-president of real estate and development, said new tenant Live Nation Canada’s plan to use the building to host a variety of live events will be the “first step” in a much-anticipated campaign to revitalize Ottawa’s downtown core.
A new music and entertainment venue that will soon take over the former Chapters bookstore on Rideau Street is expected to generate more than a billion dollars in economic spinoffs, the National Capital Commission says. Bill Leonard, the NCC’s vice-president of real estate and development, said new tenant Live Nation Canada’s plan to use the building to host a variety of live events will be the “first step” in a much-anticipated campaign to revitalize Ottawa’s downtown core. “It’s something that’s going to be phenomenal for the city,” he told OBJ in an interview on Wednesday afternoon, explaining that the Crown corporation’s forecasts suggest the facility will have an economic impact of as much as $1.2 billion over the term of the lease, which is expected to extend for multiple years. Leonard declined to elaborate on the terms of the agreement with Live Nation, which was announced Wednesday morning. He said the lease should be signed within the next 60 days.
Renovations on the 60,000-square-foot space will likely begin this summer, he added, with completion targeted for late 2025.
The NCC purchased the two-storey building near the corner of Rideau Street and Sussex Drive from a private Quebec company last year for $21.8 million. Chapters occupied the building from 1996 until 2022, when parent company Indigo Books & Music moved the store to a smaller location across the street at the Rideau Centre. Earlier this year, the NCC said it bought the “landmark” Rideau Street property because it is considered part of the “National Interest Land Mass” due to its “prominent location along Confederation Boulevard, and its potential to bring new life to this area of the downtown core.” The NCC owns more than 1,600 properties in Ottawa and Gatineau. Leonard said the former Chapters building was acquired partly because it’s a site of “national interest” near the Parliamentary Precinct. “It’s one of the marquee corners of the city, it’s right smack dab in the ByWard Market, it’s got a view of Parliament,” he explained. “This is a piece of land that we want control of for the next 200 years.”
Still, the move didn’t sit well with some high-profile Ottawans. In a post on X, formerly known as Twitter, Nepean MPP Lisa MacLeod said Wednesday the NCC’s “jurisdictional creep is getting ridiculous.” “It’s good to see they have time to purchase flagship commercial real estate to convert into a music venue for lease to a commercial giant. Totally in its mandate,” MacLeod wrote with evident sarcasm. Leonard brushed off the criticism, saying the NCC has leases with more than 600 tenants ranging from golf courses and ski hills to high-end retailers and office users. “Where it’s located makes it something that we need to accomplish our mandate,” he said of the Rideau Street property.
“This is something that is fundamental to what we do. We manage land that is in the national interest, and we rent it for commercial, residential and institutional purposes.” Meanwhile, Live Nation has been making headlines for its controversial business practices. Last month, the U.S. Justice Department sued the company and its Ticketmaster subsidiary, accusing them of running an illegal monopoly over live events in America and asking a court to break up the system, which the U.S. government claims squelches competition and drives up prices for fans. In addition, Live Nation is investigating a data breach at Ticketmaster, which dominates ticketing for live events in the U.S. In a regulatory filing in late May, Live Nation said "a criminal threat actor'' offered to sell Ticketmaster data on the dark web. Leonard said the NCC is aware of the issues facing Live Nation and believes the company will be a solid partner. The NCC talked to several potential tenants before going with Live Nation, he added, arguing the new 2,000-seat venue will be a magnet for live entertainment fans and enhance the quality of life in the downtown core. “We do our due diligence to ensure that who we’re doing business with is appropriate for what we’re trying to do.”
– With additional reporting from The Canadian Press
https://obj.ca/ncc-pegs-music-venues...mpact-at-1-2b/