LeBreton Flats 2.0 (RendezVous LeBreton) | Cancelled

[ortelius]

from Jon Willing on Twitter:
NCC announces RendezVous LeBreton Group hasn't been able to come to an agreement to redevelop LeBreton Flats. Agency to finalize a new process next month.

[waterloowarrior]

http://ncc-ccn.gc.ca/news/statement

The NCC has been advised by the Hon. Warren K. Winkler, Q.C., the mediator retained by RendezVous LeBreton Group, that the parties have been unable to reach a settlement.

The NCC Board of Directors will hold a teleconference on February 28th, 2019 to review this development.

A subsequent meeting on March 7th, 2019 will be held to finalize the elements of a new process for the future redevelopment of LeBreton Flat

[JHikka]

So that's it for Melnyk, then. I'm assuming that's his last bargaining chip for fighting off the NHL's BoG.

[acottawa]

Originally Posted by JHikka

So that's it for Melnyk, then. I'm assuming that's his last bargaining chip for fighting off the NHL's BoG.

You think the league is going to buy the team?

[JHikka]

Originally Posted by acottawa

You think the league is going to buy the team?

If I had to guess i'd assume the league forces a sale of the team to get Melnyk out of the picture. There's been rumoured interest in the past few months.

[acottawa]

Originally Posted by JHikka

If I had to guess i'd assume the league forces a sale of the team to get Melnyk out of the picture. There's been rumoured interest in the past few months.

I don’t think the NHL or other North American sports league has done that in any similar circumstance before.

[J.OT13]

Even if we get rid of Melnyk, the LeBreton arena was so important for the future of the franchise. Fans have been hyped up for years at the prospect of moving downtown, and now we'll be stuck trekking to Kanata for eternity. Even if we get a new owner and this person invests in a presentable team, the Senators will never achieve the level of popularity and revenue it needs to be a viable franchise. At this point, I predict the team will be sold and moved to a new market.

[lrt's friend]

Originally Posted by J.OT13

Even if we get rid of Melnyk, the LeBreton arena was so important for the future of the franchise. Fans have been hyped up for years at the prospect of moving downtown, and now we'll be stuck trekking to Kanata for eternity. Even if we get a new owner and this person invests in a presentable team, the Senators will never achieve the level of popularity and revenue it needs to be a viable franchise. At this point, I predict the team will be sold and moved to a new market.

This is my great fear. This seems unprecedented for an NHL team to gut itself to this degree.

I don't know a lot of history about the original Senators, but I know they sold King Clancy, arguably their best player, to the Maple Leafs and it was downward spiral to oblivion after that.

The media have been so strange. They encouraged and delighted in the feeding frenzy when Karlsson was about to be traded. But later, when they talked about another team, the same media said that no team would trade their franchise player. The whole situation with Karlsson was the tip of the iceberg. He was willing to leave Ottawa to play another season for millions less on his previous contract. He is losing something like $4M this year by not extending with Ottawa. He is willing to do that by getting out of here. That says it all.

[acottawa]

Originally Posted by lrt's friend

This is my great fear. This seems unprecedented for an NHL team to gut itself to this degree.

He was willing to leave Ottawa to play another season for millions less on his previous contract. He is losing something like $4M this year by not extending with Ottawa. He is willing to do that by getting out of here. That says it all.

Arizona, Leafs under Ballard come to mind as examples.

Contract extensions are for th next season, not the current one (i.e. he gets 6.5M this year regardless of where he plays). He has not signed for next year so we don’t know how it will compare to what Ottawa offered.

[rocketphish]

UPDATED: LeBreton Flats redevelopment talks have failed; Melnyk says 'alternative' arena locations could be explored

Kelly Egan, Ottawa Citizen
Updated: February 27, 2019

A last-gasp effort has failed to rescue the $4.1-billion redevelopment of LeBreton Flats, sidelining the prospect of an NHL arena downtown to anchor an ambitious remake of the western core of the city.

The National Capital Commission announced Wednesday morning that mediation talks led by retired judge Warren Winkler couldn’t reach a settlement in a dispute among partners of RendezVous LeBreton, a consortium that has spent four years and more than $4 million in planning work.

The failure, which completes one of the gloomiest weeks in the history of the Ottawa Senators, is hardly surprising. In the fall, the partnership between team owner Eugene Melnyk and Trinity Development Group chairman John Ruddy erupted in dramatic fashion with the launching of $1.7 billion in damage claims in harshly-worded lawsuits.

Only days after the NCC signalled on Dec. 19 that the five-year planning process was over, project consultant Graham Bird, a key member of the Ruddy team, announced that Winkler had been retained in an 11th-hour effort to patch over differences and find an agreement by Jan. 19, a deadline that was extended to the end of February.

The NCC board is to meet March 7 “to finalize the elements of a new process,” suggesting it has plan B at the ready.

It makes for a bitter end, setting aside a plan that would have transformed 55 acres into a new neighbourhood with 4,000 new homes, a new arena, a host of amenities — all served by two brand-new LRT stops soon ready for opening.

As he has for weeks, Melnyk blamed the failure on what he considers the competing interests of his partners, mainly Ruddy’s pursuit of a highrise tower across the street, at 900 Albert St., that he believes undermines LeBreton’s economic viability.

“We are devastated that the dream has been shattered,” Melnyk said in a written statement. He said Capital Sports Management Inc. has invested thousands of hours of planning time to make the bid succeed. He suggested the company was still looking at other central locations for the new arena.

“More than ever, we are determined and committed to explore alternative approaches in central locations that could accommodate a world-class hub. We are here for the longterm and want a world class venue where Ottawans will live, work, play and enjoy the best the city has to offer.”

Ruddy, one of the city’s premier developers, thanked Winkler for his efforts and hinted Trinity might not be part of LeBreton’s future.

“While I am disappointed the mediation concluded without success, I would urge the National Capital Commission to move forward on the redevelopment of LeBreton Flats — regardless of whether Trinity Group plays a role or not — given the importance of this redevelopment to our community.”

Ottawa Mayor Jim Watson, also a member of the NCC board, is holding out hope an arena deal is salvageable.

“I don’t think a deal is dead,” Watson told reporters at city hall.
Related

“I think that deal is obviously dead and I’m very much, as a board member of the NCC and the mayor of Ottawa, want to be as helpful as possible to ensure that we come up with the next plan that the public can be consulted on and we can get shovels in the ground this term of council.”

An arena, however, is still on Watson’s mind when it comes to transforming the federal land, bulldozed in a large-scale act of urban renewal in the 1960s. Watson said one idea is carving off part of LeBreton for an arena, or a national institution, in the future.

When asked what Watson thought went wrong in the RendezVous partnership, he pointed to “a lot of frustration dealing with Mr. Melnyk on a number of fronts.”

“I don’t think he has made this process easy and his musing about not going downtown, going downtown, hurt his credibility and hurt the team’s credibility,” Watson said of the Senators owner.

Watson said he was “pretty livid” when Melnyk suggested before the NHL 100 Classic — the outdoor game at Lansdowne Park in December 2017 — that the Senators didn’t need to be relocated downtown.

The mayor thinks there should be another call for proposals by the NCC. There was a second bid, of course, and the so-called Montreal group, which includes industrialist André Desmarais, was part of the mediation process as an alternate source of financing.

The NCC could simply turn the page. For years, after all, an NHL arena was not part of LeBreton’s future and there are many voices that believe a sports billionaire should not be given access to such a prized piece of real estate.

Somerset Coun. Catherine McKenney, whose ward includes LeBreton Flats, said she’s not surprised the RendezVous partnership imploded.

“I see this an an opportunity, really, to get LeBreton Flats right,” McKenney said, adding she wants more community input in the next process.

— With files from Jon Willing

To contact Kelly Egan, please call 613-726-5896 or email [email protected]
Twitter.com/kellyegancolumn

https://ottawacitizen.com/news/local...ailed-ncc-says

[roger1818]

Originally Posted by J.OT13

Even if we get rid of Melnyk, the LeBreton arena was so important for the future of the franchise. Fans have been hyped up for years at the prospect of moving downtown, and now we'll be stuck trekking to Kanata for eternity. Even if we get a new owner and this person invests in a presentable team, the Senators will never achieve the level of popularity and revenue it needs to be a viable franchise. At this point, I predict the team will be sold and moved to a new market.

I wouldn't rule out an arena at LeBreton. It will take time to go through a new bidding process and the winner could work with a new owner (if the team is sold) to have a new arena built. It isn't a done deal, but not out of the realm of possibility either.

[OTSkyline]

My frustrations is no one else bid last time around. Or they dropped out. Why would we think this time would be any different?

Plus I was DEVCOR and had followed the process, been cooperative and had sunk who knows, hundreds of thousands into this project and their proposal, I wouldn't be too keen on working with the City/NCC and doing up another proposal...

[acottawa]

Originally Posted by OTSkyline

My frustrations is no one else bid last time around. Or they dropped out. Why would we think this time would be any different?

I think that is right. This whole process was based on the idea that a proponent would willing to spend hundreds of millions on amenities for the right to buy tens of millions in land at market value. The NCC needs to rethink that strategy.

[AuxTown]

Holy shit I'm getting depressed!



If the NHL really wants to team to stay in Ottawa, which I understand is what they want, they need to step in here. We have an owner who is ruining the on-ice product, alienating long-time fans, and sabotaging his arena/Lebreton negotiations in the most "Trump-like" manner I can think of. Let's just hope the NCC has some interest when they look for new proposals from potential developers.

[lrt's friend]

Originally Posted by acottawa

I think that is right. This whole process was based on the idea that a proponent would willing to spend hundreds of millions on amenities for the right to buy tens of millions in land at market value. The NCC needs to rethink that strategy.

What is the real value of this land when it is contaminated?

The developer makes money on the value added through leasing and selling buildings. This will be on top of the land price and the clean-up costs.

The only way to pay for public amenities is to allow the developer to build more density than would normally be built on that land.

So, if the land normally would contain 20 storey buildings, the developer needs to be allowed to build 40 storey buildings.

The economics are simple.

Whether the possible value-added by the developer will ever be enough to pay for a new arena is the big question. Can the Ottawa market support enough building on Lebreton Flats within a reasonable time period to finance an arena?

[acottawa]

Originally Posted by lrt's friend

What is the real value of this land when it is contaminated?

The developer makes money on the value added through leasing and selling buildings. This will be on top of the land price and the clean-up costs.

The only way to pay for public amenities is to allow the developer to build more density than would normally be built on that land.

So, if the land normally would contain 20 storey buildings, the developer needs to be allowed to build 40 storey buildings.

The economics are simple.

Whether the possible value-added by the developer will ever be enough to pay for a new arena is the big question. Can the Ottawa market support enough building on Lebreton Flats within a reasonable time period to finance an arena?

I have no idea, but I think a pretty clear clue is, as OTSkyline said, no big developer came forward. No pension funds, no sovereign wealth funds, not even Claridge. The 4 principals in both bids (Devcore, Mirens, Trinity and SSE) have (as far as I can tell) built as many tall buildings between them as I have (zero). Ottawa probably just doesn’t have that kind of real estate market.

[passwordisnt123]

Last I heard the city's position was they still didn't want to cover all of the soil remediation costs for Lebreton. (https://ottawacitizen.com/news/local...report-reveals)

Does anybody know if that's changed?

If the city is serious about making something happen on the second go around, I think we should seriously consider reversing that decision and sweetening the deal by fully (or mostly) covering all soil remediation costs by the eventual developer. I don't believe in public subsidies or taxpayer money for private sporting arenas but I would have no problem with subsidizing the redevelopment of the flats indirectly via environmental remediation.

Sweetening the deal now would also have the added bonus of screwing over Melnyk a little bit, which would be nice. It would also get the message to Bettman and the NHL that the City is serious about working with somebody reasonable. The pressure would really be on then for them to give Melnyk the shove.

[Marshsparrow]

Melnyk is scouting other central locations? Where? What locations? This guy needs to be run out of town.

[lrt's friend]

Originally Posted by passwordisnt123

Last I heard the city's position was they still didn't want to cover all of the soil remediation costs for Lebreton. (https://ottawacitizen.com/news/local...report-reveals)

Does anybody know if that's changed?

If the city is serious about making something happen on the second go around, I think we should seriously consider reversing that decision and sweetening the deal by fully (or mostly) covering all soil remediation costs by the eventual developer. I don't believe in public subsidies or taxpayer money for private sporting arenas but I would have no problem with subsidizing the redevelopment of the flats indirectly via environmental remediation.

Sweetening the deal now would also have the added bonus of screwing over Melnyk a little bit, which would be nice. It would also get the message to Bettman and the NHL that the City is serious about working with somebody reasonable. The pressure would really be on then for them to give Melnyk the shove.

If the NCC owns the land, why does the city have to pay for the decontamination of the site? It seems to me that the NCC should be paying for it by reducing the price of the land.

[rocketphish]

The NCC's next steps after Rendezvous LeBreton's demise

James Bagnall, Ottawa Citizen
Updated: February 27, 2019

So, here’s what we know. Rendezvous LeBreton — the partnership between Trinity Development founder John Ruddy and Ottawa Senators owner Eugene Melnyk — is dead. And the National Capital Commission is firmly committed to moving ahead with its transformational development of LeBreton Flats.

Which means the NCC has a couple of interesting choices.

First, does the federal Crown corporation still want a National Hockey League stadium to serve as the centrepiece?

Second, will it relaunch a competitive design contest from scratch, or draw extensively on the work already done, in order to more tightly frame the new procurement process?

If the NCC is firmly wedded to the idea of NHL hockey downtown, then this means any future development of LeBreton Flats would necessarily involve Melnyk.

The Senators’ owner appeared at first glance Wednesday to rule out any participation in a new LeBreton project, but it’s not clear whether this is merely a negotiating ploy or reflects his true sentiments following six weeks of failed mediation efforts. For what it’s worth, this is how he characterized the current situation:

“We are determined and committed to explore alternative approaches in central locations that could accommodate a world-class hub. 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,” Melnyk wrote in a statement.

Taking this at face value, Melnyk appears to be proposing an alternative “hub” — a combination of hotels, retail shops, condominiums, sporting venues and stadium — somewhere else in downtown Ottawa. Assuming he could find a suitably large property — which promises to be difficult — such an arrangement would allow him to select his own partners, perhaps along the lines he originally proposed at LeBreton, with Melnyk and the Senators controlling the entire show.

Leaving aside the question of location, Melnyk’s ability to finance the hub would depend heavily on the willingness of future partners — retailers, condominium developers — to contribute equity to the various phases of the development. In part, this is because Melnyk is believed by many to be less wealthy than he was when he acquired the Senators and arena in 2003 out of bankruptcy court.

But there’s another factor weighing on him now. The value of the team and arena — estimated by Forbes Magazine two months ago at $435 million U.S. — has surely been weakened by the lacklustre play of the team, currently dead last in the league. Future Melnyk partners will have to ask themselves whether any new arena will be capable of drawing thousands more fans per game than is the case now. If the stadium is to serve as a magnet for the proposed hub, it must play host to a team capable of generating real excitement.

Are there circumstances that might see Melnyk and the NHL return to LeBreton? There’s only a slim possibility. Ruddy himself appeared to open the door a crack Wednesday with this statement:

“I would urge the NCC to move forward on the redevelopment of LeBreton Flats — regardless of whether Trinity Group plays a role or not — given the importance of this redevelopment to our community,” Ruddy affirmed.

Ruddy declined an interview to clarify what he meant, whether he was signalling acquiescence to a potential LeBreton deal between Melnyk and other partners, perhaps members of Devcore Canderel DLS. This was the group ranked second by the NCC in the original contest to determine who would develop the Flats.

It’s understood Ruddy and Melnyk met separately in recent weeks with André Desmarais, a key member of the Devcore group and co-chief executive of Montreal-based Power Corp., so positions on this score are likely known to the principals.

It would be surprising if new NCC chief executive Tobi Nussbaum was not also aware of the substance of these talks, assuming they took place outside the formal purview of the mediation led by former Ontario chief justice Warren Winkler. Would Nussbaum be willing to put into play a fresh LeBreton Flats procurement that might involve Melnyk?

It seems doubtful. While Melnyk was within his rights to re-examine the underlying economics of the Rendezvous LeBreton partnership — a dispute with Ruddy that late last year produced $1.7 billion in claims and counterclaims — relations between Melnyk and the NCC appear to be irreparably damaged.

The underlying economic rationale for LeBreton hasn’t changed, though. If the capital region grows at the relatively leisurely rate of just 1.2 per cent per year for the next two decades, that would mean a population jump of some 380,000 which must be accommodated somewhere. The Conference Board of Canada reckons housing starts in the capital region, including condos and apartments, will top 8,000 per year until 2022. Assuming that trend continues, it would be enough to meet long-term needs. But, again, the new units need to go somewhere — and LeBreton Flats is an obvious location for many of them.

Another source of potential development for LeBreton is the high-tech sector. Shawn Hamilton, a senior vice-president with CBRE, a real estate consulting group, told this newspaper that high-tech vacancy rates have fallen to unusually ow levels. He noted there are potential tenants in Kanata seeking half a million square feet of office space “in a market where only half a million square feet of vacant space exists.”

Without significant new office development, Hamilton suggested, tech firms may very well expand in other cities with more space.

Hamilton also happens to be a key player in a new group that calls itself Capital 2020. Its goal is to push for the development of a handful of projects including LeBreton Flats, ByWard Market, The Ottawa Hospital’s new Civic campus, train service between Ottawa and Gatineau and a federal employment campus in Orléans.

The basic message is there is sufficient economic impulse in this region to support any number of significant projects — even one on LeBreton that does not include an NHL stadium.

Naturally the NCC would not support the idea of simply sprinkling condos and offices around LeBreton. These would simply provide the economic basis for whatever development vision emerges from the NCC’s next steps.

https://ottawacitizen.com/business/l...bretons-demise