Hilarious that Bob "Football King" Monette is now whinging about how Council was promised the City wouldn't get hooped for extra costs when they signed on with OSMUG.
I don't seem to recall Monette expressing any skepticism on this score when he was the one beating the drum loudest for the Lansdowne scheme.
These are all good, local boys, we were told, with the implication that they would never do City taxpayers wrong.
Oh well, even if OSMUG has to pony up for these repairs, apparently it just increases its equity stake, and so, its share of the money trickling down via the magic waterfall. So, it sounds like they win either way.
'Twas ever so. Billionaires don't get rich spending their own money.
Quote:
Originally Posted by alecz_dad
City, OSEG at odds over added Lansdowne costs
$17 million in repairs to corroded steel beams needed to be done, OSEG says
CBC Ottawa, December 31, 2013, 4:08 PM
"It is the City’s view that, with regard to the funding of these unexpected costs, the provisions of the Lansdowne Redevelopment Plan Project Agreement related to the City’s guaranteed maximum price require OSEG to pay for the costs of the work that are in excess of the project contingency that is contained within the Guaranteed Maximum Price," Manconi wrote in a statement.
As part of the Lansdowne deal, the extra costs would add to OSEG's minimum equity, giving them a potential greater share of future earnings from Lansdowne.
Councillor Bob Monette said city council was assured this exact scenario wouldn't happen.
"A lot of us asked, are there going to be any other costs down the road, and they everybody said no. So I don't think taxpayers should be on the hook for the full amount, that's for sure," said Monette.
Greenberg said if his company and the city can't come to an agreement, they would go to an arbitrator.
But the cost overrun won't delay the opening of Lansdowne next year.
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