Eugene Melnyk tried to halt LeBreton venture in September

The company owned by Eugene Melnyk saidit had no idea its partner Trinity Development Group had filed the planning applications for their $4-billion project to redevelop LeBreton Flats, according to a letter obtained by CBC News.

In fact, his Ottawa Senators organization said itdidn't even see the plans until after they were filed to the city on Aug. 31.

On Sept. 5, a lawyer for Capital Sports Management Inc.(CSMI)emailed Trinity chairman John Ruddy to object "in the strongest possible terms" to the fact that the Senators organization did not approve of nor were consulted on the applications before they were filed.

The move led Melynk'scompanyto tellRuddy that it did not want "any steps being taken to further the development" onLeBretonFlats until certain concerns were addressed.

Trinity's lawyer Milton Davis did not respond directly when asked if the developer had answeredCSMI'sSept. 5 letter, but said thatCSMIwas aware the planning documents had to be filed.

Neighbouring plans

These are some of the details starting to emerge after the $700 million lawsuit CSMIfiled last Friday againstits main partner in RendezVousLeBretonGroup, the consortium chosen in 2016 by the National Capital Commission to redevelop the 21 hectares of land just west of downtown.

Also named in the suit is developer Graham Bird and his firm, Graham Bird Associates.

The crux of CSMI'ssuit is that Trinity was in a conflict of interest because it was involved with city insiders to develop an upscale building complex at 900 Albert St., which is across the street from LeBretonFlats.

Trinity's project, the suit alleged,would have a negative impact on the financial success of the LeBretonplan, which was to include not only a new arena, but 4,000 residential units, commercial and office space and public areas.

None of CSMI's allegations have been proven in court.

The defendants have allstrongly denied the claims in the lawsuit and said theyplanto vigorously defend themselves.

Senators went to mayor

Less than two weeks after writing to Trinity, the Senators wrote to the mayor for help.

In the letter, dated Sept. 17, Senatorschief operating officer Nicolas Ruszkowskitold Jim WatsonthatCSMIwas unwilling to go on with the project unless "significant"concerns were resolved.

He wrotethe plan was "unfinanceable as currently structured."

Among other things, the letter indicatesthe mayor knew the Senators were seriously consideringwithdrawing from the project at least as early as September.

Watson was supposed to meet with Melnyk on Sept. 24, but the meeting was postponedto early October due to the tornadoes, according an emailed statement fromthe mayor's office.

An email obtained by CBC News shows Melnykdid eventually concede to moving ahead with the planning application.

"I hope this will break the logjam and allow theLebretonproject to move forward," Melnyk emailed Ruddy on Oct. 19, about a month before serving him with a multi-million dollar lawsuit.

The Senators' Ruszkowskisaid in an emailed statement that Melnykagreed to review the planning files in hopes that the negotiations with Trinity could succeed.

However, "at no time did we waive our right to review and approve the applications prior to their submission," said Ruskowski.

"We saw them only after the fact, which further shook our confidence in the partnership."