LeBreton Flats project in peril over partners' dispute

The plan for the massive redevelopment of LeBreton Flats, includinga new NHL arena, is in danger of failing over a disagreementbetween the key members of the group awarded the major project.

The Ottawa Senators and Trinity Group the key partners in RendezVous LeBretonGroup told the National Capital Commission earlier this month they have "not been able to resolve their internal partnership issues," NCCboard members heard during a public meeting Thursday.

What, exactly, is at the root of those differences was not publicly discussed. However, RendezVous LeBreton was supposed to have formalized some aspects of its partnershipby Nov. 1. Even with an additional week's time, they were unable to come to an agreement.

The board gave RendezVous LeBretonuntil itsnext meeting in late January to resolve its differences, or it will begin a new process to develop a plan for the 20 hectares of federal landjust west of the downtown core.

They have to get their act together, plain and simple, otherwise I think we're going to have to move on in January.- Ottawa Mayor Jim Watson

Ottawa Mayor Jim Watson, a non-voting member of the NCCboard, said he was disappointed by the latest development, but did not seem particularly surprised by the fact that Senators owner EugeneMelnykand Trinity executive chairman John Ruddy are having issues.

"It has been a challenging relationship that I have witnessed," Watson saidin response to a reporter's question about the rapport between the two RendezVous LeBretonpartners. "They have to get their act together, plain and simple, otherwise I think we're going to have to move on in January."

Mayor disappointed by LeBreton Flats dispute

6 years ago

Duration 0:28

Ottawa Mayor Jim Watson spoke after an NCC board meeting. It was revealed that the plan to redevelop LeBreton Flats is in danger because the partners awarded the project haven't been able to agree on a corporate structure.

City plans on hold

Earlier this year, theNCCstruck a deal in principle with RendezVousLeBretonto build a newNHLarena, an accessible community centre, 4,000 units of housing, a French-language public school and public space. The area will served by two LRTstations, Pimisi and Bayview. At that time the project was valued at about $4 billion.

NCCCEO MarkKristmansontold the board and reporters that both theNCCand the city had completed their work, including a study to determine the level of contamination on LeBretonFlats. The city was working on rezoning the area and planning forpublic amenities, but Watson said all that's now on hold.

Kristmansonalso saidthe rotating leadership of RendezVous LeBreton, particularly at the top of the Senators organization, has been a challenge.

"There's been a changing cast of characters in this project from the beginning," Kristmansonsaid, starting with former Sens president CyrilLeeder, "who we admire and who was a great leader," followed by Tom Anselmi, who also left the Senators.

Melnykreleased a brief statement Thursday afternoon saying RendezVousLeBretonremained committed to the project.

"We've championed a downtown sports and entertainment arena, and this important civic project, since initiating our proposal in 2014. We continue to be committed to making our vision a reality," he said.

In a separate statement, Ruddy said Trinity remains "committed to the redevelopment of LeBretonFlats" and "determined to work towards the right solution."

What's next

It's unclear exactly what happens next, although sources with knowledge of the negotiations say it's unlikely the RendezVous LeBreton partners will come to an agreement in withintwo months.

The group could possiblyreformulate itself with a new partner, said Kristmanson, although no one could say Thursday what that process might look like.

TheNCCCEO said there's "an enormous amount of vested knowledge" in the project, and he's adamant there be some plan for LeBreton in the future.

"We've had four teams working on it, we know the exact state of contamination, we know the servicing requirements, we know the impact of the LRT, we've advanced discussions with the Algonquin First Nations to a high degree, with the building trades," Kristmanson said.

"There's a great anticipation of this project. So if it turns out that this group can't do it, we're going to move on to a new solution and new ideas for how to bring this very important area back to life as a community in the capital."