Lansdowne Park legal showdown begins - Action News
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Ottawa

Lansdowne Park legal showdown begins

The legal showdown over the future of Lansdowne Park begins in an Ottawa courtroom.

The long-awaited legal showdown over the future of Lansdowne Park got underway Tuesday afternoon.

Lawyers for the City of Ottawa, the Ottawa Sports and Entertainment Group (OSEG), and the opposition group Friends of Lansdownehave submitted documents that are being reviewed by a judge in an Ottawa courtroom.

Court challenge

The Friends of Lansdowne case hinges on three arguments:

  • The City acted in bad faith, using its powers to serve private interests
  • The City violated its procurement bylaws by abandoning a public design competition and instead sole-sourcing the contract
  • TheCity illegally gave bonuses to OSEG for instance, byproviding leases at below-market value

At issue is whether the city followed itsown rules when it came up with the plan to redevelop Lansdowne Park.Thelegal outcomewill either pavethe way for construction to begin on the$300 millionproject, or put the city back to square one with the public space.

With about 75 people in the courtroom, Friends of Lansdowne's lawyer Steven Shrybman saidthat the case isfundamentally about accountability and transparency.

At one point, Senior Justice Charles Hackland looked for clarification about how thegroup'scasecovers whether this is a bad deal for the city.

Shrybmanrespondedtheir caseis not about the deal's merits, but about the lawfulness of the procurement. The issue is bad faith, not bad economics, he said.

Council approved deal a year ago

It was just under a year ago that Ottawa city council voted to form a public-private partnership with OSEG to renovate Lansdowne Park. Under the deal, OSEG will oversee renovations of Frank Clair Stadium, and build a mix of condominium and retail space in the rest of the park.

The city has argued it was justified in sole-sourcing the project because OSEG is the only group capable of redeveloping Lansdowne Park and at the same time securing a Canadian Football League team and a junior hockey team as tenants.

In September of last year, Friends of Lansdowne filed a lawsuit, alleging the city broke a half-dozen municipal and provincial regulations by entering intothe partnershipwithout seeking other bids.

The application seeks to overturn council's decision and prevent the city from starting construction until the matter is dealt with.

CBC reporter Marni Kagan said the citizens group, which was formed in 2009, argued in courtthe city wasn't open and transparent, violated its own procurement bylaws by abandoning a public design competition, and gave illegal bonuses to OSEG in the form of leases at below-market value.

'Maybe we're going to set a precedent right here and government may wake up.' Gord Henderson, Friends of Lansdowne Park

Outside court, DougWard of Friends of Lansdowne said the city allowed OSEG to "jump the line, and we don't like people who bust into line and get an unfair advantage."

The group has raised more than $200,000in legal fees to fight the deal.

"It's really about what all of levels of government in this country talk about and fail to perform," said member Gord Henderson. "It's to provide a proper level of transparency and accountability. They don't do it. And maybe we're going to set a precedent right here and government may wake up."

The city and itslawyersdid not comment onthe legal aspects of the case, but they've always maintained that any decisions they've made about the developmenthave beenabove board.

Mayor JimWatson said Monday that Lansdowne will be redeveloped, even if the courts decide this particular deal can't go ahead.

"There's no debate, even amongst those that oppose the current plan, that we just allow Lansdowne to remain the same," he said. "It's tired, it's expensive, it's falling apart and we have to revitalize this important asset in our city."

Senior Justice Hackland set aside two-and-a-half days this week and another three days in the last week of June to hear the case.