LeBreton Flats 2.0 (RendezVous LeBreton) | Cancelled

[J.OT13]

After the disaster that has been the last few years (both with RVL and the Sens), I'm having trouble seeing how this project and the team can carry on with Melnyk. He's been burning bridges for far too long.

[acottawa]

Originally Posted by migo

Another possibility is a tweak from Melnyk's Dec. 18 offer: DCDLS instead of Trinity would pay to build the arena and the Senators would pay for the arena's "operating and life-cycle costs during the term of its lease."

What would be their incentive to do that?

[phil235]

Originally Posted by acottawa

What would be their incentive to do that?

Only an ownership stake in the team. There have long been rumours about Melnyk taking on a partner. Perhaps this is the moment.

[HomeInMyShoes]

Originally Posted by phil235

Only an ownership stake in the team. There have long been rumours about Melnyk taking on a partner. Perhaps this is the moment.

Based on how well Melnyk plays with others I can see that working really well for maybe two months.

[phil235]

Originally Posted by HomeInMyShoes

Based on how well Melnyk plays with others I can see that working really well for maybe two months.

Sure, it would probably be part of the NHL's plan to gracefully exit Melnyk stage left.

[J.OT13]

Yesterday, it was just CTV reporting DCDLS was involved in the mediation. CBC is now confirming this as well.

https://www.cbc.ca/news/canada/ottaw...eton-1.4979377

[rocketphish]

Originally Posted by J.OT13

Yesterday, it was just CTV reporting DCDLS was involved in the mediation. CBC is now confirming this as well.

https://www.cbc.ca/news/canada/ottaw...eton-1.4979377

Rival bidder playing role in LeBreton mediation
Runners-up Devcore Canderel DLS taking part in talks to salvage RendezVous deal

Kate Porter, Joanne Chianello · CBC News
Posted: Jan 15, 2019 4:43 PM ET | Last Updated: an hour ago

Rival bidder Devcore Canderel DLS (DCDLS) is taking part in mediation talks aimed at salvaging RendezVous LeBreton Group's faltering plan to redevelop LeBreton Flats, CBC News has learned.

RendezVous, a partnership between Ottawa Senators owner Eugene Melnyk and Trinity Development's John Ruddy, is attempting to repair a serious — and very public — rift involving reciprocal lawsuits worth hundreds of millions of dollars.

In December, the National Capital Commission essentially pulled the plug on the project, which includes a new NHL arena and more than 4,000 residential units, to be built on the empty land facing the Canadian War Museum. The NCC gave the parties 30 days' notice to resolve their issues, a deadline that would have fallen on Friday.

In a last-ditch attempt to save the deal, the RendezVous partners announced on Jan. 4 that they were entering into mediation, tapping former Ontario chief justice Warren Winkler to oversee the discussions.

While some observers were skeptical of the effort, Winkler sent a sign that talks were promising when he asked the NCC to extend the termination notice until Feb. 28, to which the NCC board agreed on Monday evening.

Sources with knowledge of the negotiations say both RendezVous partners invited DCDLS to join the mediation. The request for proposals for the deal, as laid out by the NCC back in 2015, allows RendezVous to bring in new partners as long as both sides agree.

When NCC CEO Mark Kristmanson announced at the November board meeting that the RendezVous partners could not get along, he made a point of telling reporters that the group has "a fair amount of "flexibility" on what it could do to save the plan.

"They can regroup, they can re-form, they can bring in new partners," said Kristmanson at the time. "They have many options available to them, but they have to mutually agree on those options to bring them forward.

"When the RendezVous partnership looked to be falling apart, DCDLS said it was still prepared to step in with its plan, which had come in second in a 2016 competition to redevelop LeBreton.

The DCDLS group had proposed to develop LeBreton with less housing than RendezVous, but more public amenities and entertainment venues, such as a new central public library, a skate park, a Ripley's Aquarium and beer museum — even a sports arena, although it had no team to play in it.

The signature piece of its plan was the Canadensis Walk, a botanical garden that would run the northern border of the LeBreton property nearest the Ottawa River.

In public consultations, the idea for the linear park was quite popular — unlike the widely derided idea for a car museum.

In a December statement, DCDLS recognized that its proposal "may not have met all of the commission's aspirations" and was willing to "modify or drop those elements with a view to improving the project."

DCDLS — which, in addition to developers Devcore and Canderel, includes Montreal billionaires André Demarais of Power Corp. and Cirque de Soleil founder Guy Laliberté, as well as Ottawa's William Sinclair, co-founder of JDS Uniphase — said it would be willing to merge the best of both proposals

"We will meld the best of [RendezVous's] work into the best of ours so as to produce an extraordinary development."

But it's unknown exactly what the scope of the talks are or whether the parties will consider redesigning the master plans.

The mediation with Winkler began last week, and coming to an agreement by the end of February will be a challenge, sources told CBC.

However, Melnyk has said on the record he'd be willing to take on a smaller role in the partnership. Last month, he proposed forgoing all revenue from the commercial development of LeBreton Flats, while Trinity would pay to build the arena.

It's likely that, as part of the talks, DCDLS will be tapped to help build the arena.

By the time the extended mediation deadline arrives at the end of February, the NCC will have a new CEO.

Tobi Nussbaum, who is still technically the councillor for Rideau-Rockcliffe, will take over the helm from Kristmanson on Feb. 4 and lead the next chapter of the LeBreton redevelopment saga.

https://www.cbc.ca/news/canada/ottaw...eton-1.4979377

[AuxTown]

This is important. It means there is a new partner that actually has money rather than Melnyk who just pretends to be liquid. I am slightly more optimistic now (was at 5%, now more like 15%).

[migo]

Originally Posted by acottawa

What would be their incentive to do that?

Just ask Eugene Melnyk. He proposed it on Dec. 18, 2018.

[J.OT13]

Originally Posted by acottawa

What would be their incentive to do that?

When the plan was for Melnyk to build the arena, he was supposed to be getting 50% of the profits from the development. His entire lawsuit was based on 900 Albert cutting in to his profits. The proposal in December was him saying "fine, then you keep all the profits from the development and you build the arena!" That in itself isn't such a terrible idea, but coming from Melnyk, it's harder take seriously.

So now one of the proposals may be that DCDLS build the arena for 50% of the profits or a variation of this. In any case, I think a lot of us think they are at the table (Desmarais and Laliberté at the very least) as buyers for the Sens, which could produce a totally different scenario than "arena for a 50% stake".

[acottawa]

Originally Posted by migo

Just ask Eugene Melnyk. He proposed it on Dec. 18, 2018.

I understand Melnyk has an incentive to get a free arena, but what is DSDLS’s incentive.

[Kitchissippi]

Montreal-based owners for the arena with Cirque du Soleil affiliation would be amazing for programming beyond hockey! That would be an awesome super win for this project if they build in features that are focused on big shows and blockbuster events. Melnyk could just rent the arena for the hockey season and liquidate the CTC if he needs cash.

[corynv]

Originally Posted by acottawa

I understand Melnyk has an incentive to get a free arena, but what is DSDLS’s incentive.

I'd assume the biggest incentive is to buy the sens. whether right now, or 10 years down the line.

[acottawa]

Originally Posted by J.OT13

When the plan was for Melnyk to build the arena, he was supposed to be getting 50% of the profits from the development. His entire lawsuit was based on 900 Albert cutting in to his profits. The proposal in December was him saying "fine, then you keep all the profits from the development and you build the arena!" That in itself isn't such a terrible idea, but coming from Melnyk, it's harder take seriously.

So now one of the proposals may be that DCDLS build the arena for 50% of the profits or a variation of this. In any case, I think a lot of us think they are at the table (Desmarais and Laliberté at the very least) as buyers for the Sens, which could produce a totally different scenario than "arena for a 50% stake".

What is the profit margin for a condo or apartment in Ottawa? Given what land sells for in the Lebreton area it can’t be that high, and surely not enough that half the profit would cover the arena cost (I think that is why Leeder was fired).

The only way this makes sense to me is some sort of reverse mortgage where ownership reverts to PD or GLL when Melnyk dies. But I can’t see why mediation would be necessary.

[J.OT13]

I don't think anyone expects the 50% to cover the entire arena cost. It would be a huge help however. Remember, it's not just residential. The plan includes parking, hotels, offices and retail. The arena itself is an investment, bringing in millions from naming rights, advertisement, concessions, rent from retail space, concerts and other events. That is what will cover the balance of the arena cost. At the time the Palladium, Molson Centre, Air Canada Centre and GM Place were initially built, that's all there was. No development funding. In the latter three cases, that has changed.

Back in October, Melnyk wanted to keep all of the revenue from the Trinity funded arena, which obviously didn't fly. Any new deal of that sort would most definitely keep that revenue in the hands of whoever builds the arena, otherwise the mediation fails.

[phil235]

Originally Posted by J.OT13

The arena itself is an investment, bringing in millions from naming rights, advertisement, concessions, rent from retail space, concerts and other events. That is what will cover the balance of the arena cost.

Exactly. The arena is not simply a cost to be covered by profits from condos. It will be a major revenue generator and those future streams of revenue will be leveraged to provide some of the funding for construction.

Also, as with almost any new arena, part of the cost will very likely be covered by a ticket fee added specifically for that purpose. In Edmonton, the ticket fee is covering $125 million of the arena's cost.

[migo]

Originally Posted by acottawa

I understand Melnyk has an incentive to get a free arena, but what is DSDLS’s incentive.

Speculation: Whatever surrounds the arena (18,000+ fans per event) may generate substantial revenue/profit.

[acottawa]

Originally Posted by migo

Speculation: Whatever surrounds the arena (18,000+ fans per event) may generate substantial revenue/profit.

That’s certainly possible, but the DSDLS bid was heavy on things like mueeums and light on likely sources of revenue and profit. The RVL bid was mostly residential.

Maybe one of the partners has found a significant anchor tenant or a new way to make money, but that doesn’t seem super likely.

[acottawa]

Originally Posted by J.OT13

I don't think anyone expects the 50% to cover the entire arena cost. It would be a huge help however. Remember, it's not just residential. The plan includes parking, hotels, offices and retail. The arena itself is an investment, bringing in millions from naming rights, advertisement, concessions, rent from retail space, concerts and other events. That is what will cover the balance of the arena cost. At the time the Palladium, Molson Centre, Air Canada Centre and GM Place were initially built, that's all there was. No development funding. In the latter three cases, that has changed.

.

That hasn’t been the case for any other small market team in the league. Trinity wasn’t able to make the deal work under those terms.

It is certainly possible that some combination of PD and GLL really want a hockey team and really want it to play on the Flats and are willing to divert a significant part of their personal fortunes to make it happen. But that isn’t the same thing as the arena being a profitable venture on its own.

[rocketphish]

DCDLS looped into conversation to rescue LeBreton Flats redevelopment

Jon Willing, Ottawa Citizen
Updated: January 16, 2019

Devcore Canderel DLS finally received the call it was waiting for about LeBreton Flats.

While the partners of RendezVous LeBreton Group try to mend their fractured relationship through mediation, DCDLS, which was the runner-up in the LeBreton Flats development competition, has been contacted about potentially being involved in a solution to move the historic project forward.

Sources with knowledge of the negotiations said DCDLS has been included in a conversation about playing a role in the RendezVous plan, but the mediation still directly involves Ottawa Senators owner Eugene Melnyk, Trinity Developments founder John Ruddy and project manager Graham Bird.

Devcore president Jean-Pierre Poulin couldn’t be reached for comment Tuesday.

Senators chief operating officer Nicolas Ruszkowski said the organization wouldn’t be commenting because the mediation is highly confidential.

Bird’s spokeswoman this week said Warren Winkler, the former Ontario chief justice who’s mediating the RendezVous affair, has asked the parties involved in the mediation not to comment.

When it comes to RendezVous, one of the outstanding questions has been who would fund the construction of an arena, which would be the new home of the Senators. Melnyk has proposed Trinity build the $500-million arena and let the Senators organization run the facility, but Ruddy’s group has bemoaned Melnyk’s trying to get a “free arena.”

DCDLS, meanwhile, had been on the sidelines waiting for the National Capital Commission to call after the legal dispute broke out inside RendezVous.

The dispute led the NCC to notify RendezVous on Dec. 19 that it would be terminating their development deal on Jan. 19.

On Monday, the NCC board of directors granted RendezVous’s mediator more time to help the consortium to find a path forward. The termination date is now Feb. 28.

Timelines will be tight to make a big play at LeBreton Flats in 2019 now that the NCC has given RendezVous more runway to land a master development agreement.

If the NCC wants to maintain momentum to getting shovels in the ground at LeBreton Flats, it will have to move quickly should RendezVous emerge from mediation as a healthy consortium, with viable partners, up to the challenge of transforming the contaminated site into a new mixed-use community.

The most important date might be Oct. 21, which is scheduled to be the next federal election. Ideally the NCC would want to bring the development proposal for cabinet’s approval well ahead of the election, or else a decision would delayed until after the election. The plan had been to get a decision in front of cabinet by June 2019.

The process would have to be sped up considerably to meet that timeline.

If Melnyk, Ruddy and Bird manage to resolve their dispute, whatever proposal comes out of the mediation could have major implications for city hall, which will be asked to extend water and sewer services, manage roads and stitch the LeBreton Flats transit infrastructure into the development plan. The city isn’t involved in the RendezVous mediation, but it will have to review and run the numbers on any proposal that RendezVous comes up with.

On top of that, there still hasn’t been a planning application filed at city hall for the RendezVous development vision. The city has vowed to make the application open to public consultations.

The NCC board had been expected to make a decision on the future of LeBreton Flats during a public meeting next Thursday. The next scheduled public meeting of the board is in April.

The agency said in a written statement this week that it “has prepared next steps to bring forward at a future board meeting.”

The mediation between Melnyk, Ruddy and Bird is attempting to resolve their differences, which have been exposed in lawsuits and statements of defence. It started with a $700-million lawsuit filed by Melnyk against the other two men, then escalated to a $1-billion counterclaim filed by Ruddy against Melnyk. Bird filed a statement of defence and announced earlier this month that Winkler would be brought in to mediate.

At the heart of Melnyk’s lawsuit was Trinity’s involvement in a major mixed-use development at 900 Albert St., across from LeBreton Flats. In the lawsuit, Melnyk accuses Ruddy of using the LeBreton Flats project to boost 900 Albert and keeping the Senators owner in the dark. Ruddy’s court filings allege Melnyk knew about the 900 Albert project and accuse Melnyk of not wanting to fund the construction of an arena.

Meanwhile, the NCC and its next leader could benefit from a delayed termination date with RendezVous. A management transition is happening at the agency between outgoing chief executive Mark Kristmanson and successor Tobi Nussbaum, who is scheduled to move into the NCC’s corner office on Feb. 4.

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https://ottawacitizen.com/business/l...-redevelopment