Ottawa Senators' LeBreton plan is nothing like Lansdowne 2.0
The president of the Ottawa Senators, Cyril Leeder, is right when he says the team shouldn’t expect taxpayers to pay for a new NHL arena.
Randall Denley, Ottawa Citizen
Published Sep 24, 2024 • 3 minute read
The tentative land purchase agreement between the National Capital Commission and the Ottawa Senators offered a moment of euphoria for the team and those who believe the city needs a new arena on LeBreton Flats. Now comes the big question: who’s going to pay for it?
The Senators have had conflicting communications on that critical point. Earlier this month, team owner Michael Andlauer said he would do his share, but the arena “cannot happen without public support.” Senators president Cyril Leeder took a different tack after the purchase deal was announced, saying that he didn’t expect Ottawa taxpayers to cover the cost of the arena and it’s not typically the approach taken in this country.
That’s not always the case. Edmonton and Calgary are the two most recent cities to build arenas and not only did the taxpayers contribute money, the cities own the arenas. The most recent deal, in Calgary, will cost $926 million. The arena itself will cost $800 million, but the project also includes a community rink, a parking garage and indoor and outdoor event plazas.
Calgary will pay 56 per cent of the cost, the company that owns the Calgary Flames will cover 38 per cent and the remainder will come from the Alberta government. The province’s $55-million arena share is part of a broader $330-million deal for infrastructure improvements related to the project.
Edmonton’s 2016 arena was more modestly priced at $614 million, with city taxpayers covering just over half and most of the Edmonton Oilers’ share coming in the form of rent payments.
There has been some talk of the new rink here being a public-private partnership, but the timing couldn’t be much worse. The city is facing what Mayor Mark Sutcliffe calls a $120-million structural deficit and the mayor is pressuring the federal and provincial governments for more money. Support for a new arena won’t make the list.
The city already has its hands full managing the replacement of the north-side stands at TD Place and the construction of a new arena that will serve women’s professional and junior hockey teams and provide a venue for other entertainment.
Even though this is a case of the city replacing aged assets it already owns, Lansdowne 2.0 has been controversial. Opponents of the project believe its $419-million cost could be better spent on just about anything. Some also argue that there’s really nothing wrong with the buildings and they could be fixed up for a modest cost. It’s even claimed that there could be a tax increase or a special tax to pay for it all.
The facts tell a different story. An engineering study in 2019 found multiple deficiencies in the north-side stands and the Civic Centre arena. It concluded “the existing north stands and the arena at TD Place currently function at levels well below contemporary standards and will continue to decline in performance.”
The city has determined that required repairs for the building over the next 50 years will cost $625 million. By contrast, the city estimates building new stands and a new arena would cost $419 million. Doing nothing would cost an estimated $12.5 million a year. Debt servicing for the new stadium and parking would be $6.9 million a year. That’s hardly a substantial burden for the city, which has a $4.5-billion operating budget.
The city spending at Lansdowne is long overdue. The Senators think their arena requires replacement. It was built in 1994. The Lansdowne buildings date back to 1967. We should be pleased that the cost of Lansdowne is significantly smaller than what Calgary and Edmonton spent to replace their municipal sports buildings.
Ottawa got lucky when the original owners of the Senators built an NHL arena without public money. It will be a huge challenge for Andlauer and his partners to replicate that feat at today’s costs, but Leeder is right when he says the team shouldn’t expect taxpayers to foot the bill. There is neither the money nor the political will to make that happen.
Randall Denley is an Ottawa journalist and author. Contact him at [email protected]
https://ottawacitizen.com/opinion/de...-lansdowne-2-0