RendezVous LeBreton plan dead, but there are other locations suitable for Melnyk's arena
Rick Gibbons
Updated: March 2, 2019
WANTED: Land for new NHL arena. Must be located inside Greenbelt along LRT. Quick access to Queensway. Low price, easy terms, no-money-down preferred. Willing to consider partner with deep pockets & development know-how. Possible trade for existing arena & lifetime season-ticket package.
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Turns out RendezVous LeBreton was just an illusion meant to bedazzle sports fans and bluff the NCC into thinking that, after a long selection process, it had picked the perfect plan to transform a prime piece of real estate in the heart of the city.
What the NCC couldn’t possibly gauge was whether the Mutt and Jeff partnership behind the bid could get along. The NCC had no reason to think otherwise. The consequences of that miscalculation were laid bare this week.
Beyond the design boards and fancy presentations stood two highly successful entrepreneurs with no history of working together and nothing in common except a shared belief there was money to be made from this once in a lifetime opportunity.
The team had long yearned to secure a foothold in the downtown core and the chance to anchor the franchise in LeBreton Flats was like Manna from Heaven for ownership and fans alike. That the ambitious $4-billion project teamed the Senators’ owner with a prominent businessman known to get things done made it that much better.
Differences between John Ruddy and the enigmatic Eugene Melnyk festered almost the minute the ink was dry on their deal. There were early fights over unpaid bills. Differences in expectations grew. Melnyk was also distracted by serious health issues.
A much deeper feud spilled into the open late last year in a messy round of competing lawsuits that laid bare vastly different perspectives on who would pay for what, leading to a complete breakdown in the partnership.
Turned out Melnyk wanted out of the deal early on. A last-ditch, two-month mediation effort failed to bridge crippling gaps, leaving the NCC no choice this week but to declare RendezVous LeBreton dead before the first shovel of dirt was ever dug.
Melnyk said he was “shattered’’ by the experience and has vowed to pick up his pucks and find somewhere else to play.
“We are here for the long-term and want a world-class venue where Ottawans will live, work, play and enjoy the best the city has to offer,” he said in a statement.
The collapse in the partnership will make things very tough for the Senators’ owner, who has earned a reputation for being temperamental. Ottawa Mayor Jim Watson placed blame for the RendeVous failure squarely on Melnyk’s shoulders, having grown frustrated in his own dealings with him.
Finding a new site won’t be easy. Melnyk’s finances are private and his wealth is largely tied up in the pharmaceutical industry. He currently runs his hockey operations as lean as possible, all of which suggests it’s highly unlikely he has the cash to go it alone. Nor does he have the development expertise to execute a large and complex project that, by necessity, would be much bigger and more expensive than a simple rink on a field.
The economics of today’s NHL demand much larger, multi-purpose complexes with revenue streams far beyond tickets, parking and beers sales.
Melnyk has long favoured the Edmonton model where franchise owner Daryl Katz successfully navigated construction of a $600-million downtown complex using a mix of company cash, loans, ticket surcharges and even some government money. It quickly fuelled a building boom surrounding the new rink and likely secured the team’s prosperity for a generation. The search for a new home for the Senators would have to begin on the understanding it would need to be something similar for it to work.
Those familiar with the real estate industry say almost any reasonable alternate location could take years to negotiate and to secure appropriate financing. There would also need to be city approvals. But the biggest obstacle is money. Does he have it? Can he raise it? Can he find a dance partner, given his reputation for being difficult? Can he secure any government funding?
The good news is there are potential sites in the city, although none of them comparable to LeBreton Flats. Some properties that might fit the bill already have development plans in place. Others will prove far too expensive. Some would require zoning flexibility from a city whose mayor is feeling awfully burned by the LeBreton fiasco. But it’s real estate. Almost anything is possible at the right price.
The search needs to begin with a few basic requirements:
• It must be inside the Greenbelt. Fans want a location that is central and easily accessible. Putting it in Orléans or the far south end of the city accomplishes nothing. He might as well stay in Kanata. A new site doesn’t need to be in the centre of the city. Close would work.
• A plot of land alongside the first or second phase of LRT is imperative if you are going to accommodate large numbers of fans. The future is transit, not cars. That complicates matters since savvy developers have already scooped up land along the LRT corridor. Phase 3 LRT will take far too long and push the search too far from the city’s core.
• The new site must have easy access to the 417. Many fans will still prefer to use their own cars and some will have no choice. You need to accommodate them without tying parts of the city up in traffic knots.
Here are some locations that, with a little luck and a lot of cash, might fit the bill, provided there was co-operation from one or more levels of government.
1200 Vanier Parkway: The RCMP has pretty much completed its move to new digs in Nepean. Its former headquarters is prime real estate, located with a river view and alongside a 417 interchange. There’s good road access from all directions and decent proximity to downtown. It’s a hike across the Queensway to the future Tremblay station, but there’s a new under-utilized pedestrian bridge that would probably welcome traffic. Current owner: Federal government.
MTO Lands, St. Laurent Blvd: Another site with excellent access to the 417. Still, a hike across the Queensway to the future St. Laurent LRT station. Current owner: Ontario government.
Lincoln Fields Shopping Centre on Carling near the Western Parkway: It currently stands almost empty, with a few retailers struggling to hang on until redevelopment. The site will be well served by Phase 2 of LRT. Queensway access is less than perfect, but proximity to the Sir John A Macdonald Parkway is excellent and would help relieve some traffic concerns. Current owner: Real estate investment firm RioCan REIT. It already has plans for the site, but might be persuaded if the money was right.
National Defence Headquarters, 101 Colonel By Dr.: This is considered a dream location. It’s in the heart of the city, along the canal. Well served by LRT. The space is not currently available and DND has no plans to abandon its proximity to downtown. But who knows? Transition of many DND employees to the old Nortel site on Moodie Drive continues apace and the available space for expansion there just might be enough to convince DND to move the entire operation out to Nepean — lock, stock and — barrel — if the price is right.
Looking for more? Pick almost any shopping centre inside the Greenbelt. The Carlingwood Mall or even St. Laurent Mall would likely be available at the right price given continued decline in the fortunes of brick and mortar stores.
Of course, returning to LeBreton under a different plan and different partnership can’t be ruled out, although Melnyk has likely burned too many bridges to be welcomed into any partnership with open arms.
The last and maybe only option left would be to recommit to Kanata. It makes sense in the short-term, but without the opportunity to build major new revenue streams like a casino or entertainment district, the long-term prospects are grim.
When it comes to finding a new home for the Senators, Melnyk can forget about relocation to another city. The NHL has strict rules on relocation and he fails the test on all counts.
He would have to prove the team cannot be viable in Ottawa and that there are no prospective buyers in the city. There are at least two alternative bids, possibly three, waiting in the wings and Ottawa has proven itself a good hockey market.
Suffice to say Ottawa is home to the Senators for many years to come. The question is where and maybe under whose ownership.
— Gibbons is a former Publisher and CEO of the Ottawa Sun He can be heard weekdays 1-3 PM on 1310 NEWS
https://ottawacitizen.com/news/local-new...wcm/b6d7b7f5-2205-4bd9-9a09-9acb22908312
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