NCC declined Claridge request for return of LeBreton $85,000 security deposit
Don Butler, Ottawa Citizen
Published on: September 14, 2016 | Last Updated: September 14, 2016 3:43 PM EDT
The National Capital Commission is hanging onto an $85,000 security deposit paid by Claridge Homes, one of four proponents the NCC invited last year to submit a full development proposal for LeBreton Flats.
According to documents released to the Citizen under access to information, Claridge asked for the return of the security deposit last April.
But in a letter to Claridge vice-president Neil Malhotra dated April 27, 2016, the NCC declined the request, at least for now.
Yannick Bouchard, the NCC’s chief of real estate development projects, told Malhotra the agency was entitled to draw on the security deposit as “liquidated damages” because Claridge failed to submit a development proposal by the Dec. 15, 2015 deadline.
According to an email from Bouchard, Claridge didn’t confirm it wouldn’t be submitting a proposal to develop LeBreton until the morning of the Dec. 15 deadline.
In his letter, Bouchard pointed out that, under the terms of the LeBreton Request for Proposals document, the NCC was permitted to draw on the security if a proponent failed to make a submission or withdrew from the process.
He said the NCC would retain Claridge’s security deposit until the end of the procurement process, which will continue until the federal cabinet signs off on a development agreement, likely sometime in 2017.
“However, at the end of the process, provided the NCC is satisfied that it did not suffer any damages, the NCC will return your stage one security without interest or any other charge to you,” Bouchard’s letter says.
Nicholas Galletti, a spokesman for the NCC, said Claridge “can expect to recover the full amount as long as the conditions of the (Request for Proposals) are respected.”
Asked about the matter, Malhotra would only say: “We cannot provide any comment at this time.”
That may be because, even though Claridge is no longer involved in the LeBreton competition, it remains bound by the NCC’s prohibition on public communications and disclosure of information until the procurement process ends.
In the end, only two of the original four proponents — RendezVous LeBreton and the DCDLS Group — submitted proposals. In April, the NCC rated RendezVous’s proposal the highest, triggering talks aimed at reaching a development agreement.
Update on negotiations
It remains unclear whether talks between RendezVous and the NCC have progressed to the stage of formal negotiations.
According to talking points prepared for NCC officials in April, released under access to information, undefined “milestones” need to be reached “before we enter proper negotiations with the highest-ranked proponent.”
In his update on the status of LeBreton Flats at this week’s NCC board meeting, CEO Mark Kristmanson said “numerous meetings” have taken place and “some progress” has been made.
Kristmanson’s characterization of the talks as “meetings” rather than “negotiations” raises questions about whether they remain focused on the milestones rather than an actual development agreement.
Kristmanson said RendezVous representatives were also holding meetings with senior officials at the City of Ottawa, adding: “I’m looking forward to a full presentation to the (NCC) board in November, at which point it is expected that we will determine the next steps in the process.”
Galletti declined to answer further questions at this time, pending the presentation at the board’s November meeting.
dbutler@postmedia.com
twitter.com/ButlerDon
http://ottawacitizen.com/news/local-...curity-deposit
Prev
Agreement
Lebreton Flats Construction
Agreeing with Construction of Lebreton Flats
NCC Decision
Completion of LeBreton Flats Redevelopment
Update
Linear Mode
