Professional Documents
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City-Wide / À L'Échelle de La Ville
City-Wide / À L'Échelle de La Ville
Mayor O’Brien outlined how the meeting would proceed pursuant to the procedural
memo provided by the City Clerk and Solicitor and the Deputy City Clerk. He advised
that the proponents had agreed to the Senators Sports & Entertainment (SS&E)
presenting first. He then invited staff to provide an update presentation.
Speaking to a PowerPoint presentation, Mr. Kent Kirkpatrick, City Manager, and Mr. Rob
Mackay, Manager of Projects: updated Committee on the direction given at the previous
meeting with respect to potential infrastructure funding from the federal and/or provincial
governments outside the infrastructure funding programs for which Transportation
Master Plan (TMP) projects were eligible; outlined options and costing in terms of “base
case” versus option A (Civic Centre limited refit) and option B (Civic Centre full
contemporization); and discussed alternative concepts, including a description of a 1998
proposal prepared by Canderel. A copy of their presentation is held on file.
Responding to questions from Councillor El-Chantiry, Mr. Kirkpatrick advised that, since
2001, annual revenues generated by Lansdowne Park had been around $4M and $5M and
the 2009 actual revenue was $4.5M whereas the expenses for operating the facility were
$5.3M. He explained that under the “base case” scenario outlined in the presentation,
there would be no investment to renovate the facility because the City would merely to
keep it safe for its current programming mandate. However, he maintained that $24M
would be needed for lifecycle renewal at the facility over the next 10 years.
Representing the Lansdowne Live proponents were Mr. Roger Greenberg, Mr. Bill
Shenkman, Mr. Jeff Hunt and Mr. John Ruddy.
Mr. Greenberg spoke to a PowerPoint presentation in which he: talked about Lansdowne
Park’s central location; discussed the group’s vision for the site; referenced the overall
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need for revitalization of the existing facilities; outlined the group’s proposal for a multi-
purpose stadium and how other uses, such as the Ottawa Farmers’ Market and trade
shows, would continue to be accommodated on the site; expressed a willingness to work
with the City and the community to meet the needs of all residents; and described the
group’s business plan, including the conditional CFL franchise, facilities management,
site considerations, funding model and risks to the City. A copy of the presentation is
held on file.
Responding to questions from Committee members, Mr. Leeder provided the following
information:
• With respect to the risks associated with financing the proposal, he advised that the
group would need the unqualified support of the City to assist in moving forward and
seeking funding support from the upper levels of government. He remarked that just
about every stadium in the country had been build with a shared funding formula
between the province, the federal government and the respective cities.
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• The soccer stadium would hold 20-25 soccer matches annually as well as 8 to 13
concerts and a number of other festivals and eventually, trade shows.
• The stadium would share parking facilities with Scotiabank Place and this would be
managed by ensuring the two venues did not run concurrent major events.
• The property tax figure of $7.5M referenced in the presentation was an estimate based
on $2.5M from Lansdowne and $5M from additional commercial development that
would occur between the stadium and Scotiabank Place. The stadium would not pay
municipal property taxes because it would be a city-owned facility.
• Mr. Leeder indicated he did not yet have an estimate of the amount of profit expected
from the development of the rest of the site.
• Mr. Leeder confirmed that SS&E would be prepared to negotiate with the City or
change some of the terms submitted. However, he maintained that what they had put
forward was what they felt could work to ensure a viable stadium and a successful
team.
• With respect to potential fan base, he indicated when he was growing up, baseball
was the popular sport. However, his own kids had never played baseball. Instead,
they played soccer and hockey. Therefore, he surmised that the demographics had
changed and in order to build a fan base, these fans needed to be able to participate in
the sport. Based on this, he was confident that the SS&E could build a strong fan
base for professional soccer.
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• In terms of why it was important to get a stadium now, Mr. Leeder submitted that the
MLS was expanding now. He noted that they had missed the opportunity for the
2011 expansion but that the league would soon be announcing its process for two
more franchise expansions in 2012 and it was not clear whether it would still be
expanding in three or four years.
• Mr. Leeder confirmed that until a stadium was confirmed, they were unlikely to be
awarded a franchise. The process was to work with the City to get a conditional
approval and a period of time to finalize the documents that would be required for a
stadium agreement. During this same period, they would secure the MLS franchise.
He submitted that in order for the proponent to approach the league to secure a
franchise, it would need to confirm that the City wanted to move forward with the
soccer-specific stadium, confirm the City’s contributions of land and $16.7M and
have the City step forward with them to apply for funding from the upper levels of
government.
• Speaking to the issue of financial risks, Mr. Greenberg did not believe there were any
risks to the City. Once the proposal was confirmed, the proponents would give
guaranteed price to complete the renovation of the stadium as they had confidence in
the $97M estimate and noted that it contained adequate contingency. Further, he
indicated the proponents would be responsible for all operating losses and be able to
keep all operating gains once the facility was open. He clarified that the $97M cost
estimate was for the stadium and arena components only.
• In terms of other costs, the proponents have estimated tax revenues from the
commercial development on the site and believe that between this and the $3.8M the
City currently spends to operate Lansdowne Park, it could pay off the $100M
debenture on a 30-year amortization. Further, the speaker maintained that Lansdowne
Park was a city-owned asset, would continue to be a city-owned asset, and at the end
of the 30-year lease, the City would inherit real estate worth in excess of $300M.
• Mr. Greenberg advised that there were approximately 10-12 acres of land at the site
currently not specifically spoken for within their proposal, though they had provided
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a number of ideas, which they felt were in keeping with what residents wanted at
Lansdowne Park; a 365-day a year gathering place with a variety of activities.
Further, he re-iterated that OSEG would be happy to participate in a collaborative
process with the City with respect to its needs; whether or not all 12 acres would be
developed and whatever process may be undertaken to do so.
• With respect to concerns regarding big box stores, Mr. Greenberg felt that it was a
misnomer to suggest that what they were proposing was a series of big box retail
developments. He maintained this was the furthest thing from their minds. He noted
that they had not gotten into any detailed design vision for the site and submitted this
was something that had to be done in collaboration with the City as this was not their
land and it would likely require an Official Plan amendment, rezoning application and
site plan amendment; all opportunities for public input. He submitted that their
development expertise was an asset they brought to the process but he re-iterated that
they were sensitive to the needs of the local area.
• Mr. Greenberg confirmed that the project cost did not include the various proposed
features such as an amphitheater, formal gardens, reflecting pool, etc. These were
provided as examples to illustrate what could go on the site.
• Mr. Greenberg conceded that citizens would want to see the entire park redeveloped.
He believed there were many ways to address the situation, though he maintained that
the stadium was one component and that the Aberdeen Pavilion, the retail, the
proposed residential and the remaining 10 to 12 acres were separate additional
components. He confirmed that it would be nice to see all the design pieces come
together but that often, communities were developed in stages.
• With respect to phasing, he submitted that there were serious problems with the
stadium so its redevelopment needed to move forward and that the retail needed to be
developed at the same time. He explained that because the stadium itself would
likely lose money, the proponents needed to move forward with the retail component
in order to make the whole proposal viable. Further, it was expected that the tax
revenues generated by the retail development would help the City finance its
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contribution to the project. However, he believed more time could be taken in terms
of finalizing designs and developing the rest of the site’s components.
• Speaking to the media reports with respect to the release of the engineer’s report on
the status of Frank Clair Stadium, Mr. Greenberg explained, given that the document
had been around for several months, the proponents were mystified as to why it was
not released a long time ago and why it was not make known that their proposal
incorporated all of the challenges identified in the document. He maintained that it
was a public document and the public had a right to know what it contained.
• When asked why they had not entered their proposal into the previous design
competition for Lansdowne Park, Mr. Greenberg explained that at the time they
started the process to get a conditional CFL franchise, there was no design
competition nor did anyone know about the cracks in the stadium. As they moved
along in their process, information came to light with respect to the condition of
Frank Clair Stadium and the City announced a design competition for the
redevelopment of Lansdowne Park. He indicated they proponents did not have
confidence that the design competition was going to result in a successful process for
the City of Ottawa. Therefore, they decided to submit an unsolicited proposal, which
was within their rights in a democratic society. Conversely, he remarked that it was
within the City’s rights to reject their proposal and continue on with the competition.
• In terms of costs, Mr. Greenberg maintained that the OSEG proposal was revenue-
neutral to the City based upon the City’s current expenditures and that detailed
information in this regard had been provided to staff as part of the proposal. Further,
he noted that in assessing this aspect of the proposal, staff had rated it as exceeding
expectations.
• Speaking to the issue of taxes, Mr. Greenberg estimated that the retail component
would generate about $2.5M annually in property tax revenues for the City but that,
as a city-owned facility, the stadium would not be paying any taxes.
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• When asked whether they would be willing to look at making the Aberdeen Pavilion
the permanent home of the Ottawa Farmers’ Market, Mr. Greenberg expressed a
willingness to discuss options. He submitted that the aquarium was an exciting and
incredible opportunity for the City in terms of the visitors it would attract. However,
he noted that this would not have to be at the Aberdeen Pavilion, or even on site. He
maintained that the City had to express its priority for the Aberdeen Pavilion, whether
that was the Farmers’ Market, trade show space or other.
• When asked whether they had done a market analysis in terms of potential fan base,
Mr. Greenberg indicated they had not done a specific study. However, he submitted
that, no withstanding good reasons otherwise, Ottawa fans had always supported
football. He believed the problems with previous franchises stemmed from poor
management and the fact that the facilities left a lot to be desired. He re-iterated
some of the improvements the group would be making to the facilities and expressed
confidence in Mr. Hunt’s management and the quality partnership associated with this
group.
• Speaking to a $10M costing for an aquarium, Mr. Greenberg indicated the OSEG
proposal did not require that the City provide any funding, front-ending or otherwise,
for the aquarium.
However, he advised that the proponents would provide, at their expense, enough
parking for the retail component as well as for the parking spaces displaced by that
retail development.
• With respect designing and developing significant pieces of public property, Mr.
Greenberg acknowledged that his company did not have this type of development
experience. However, he maintained that Lansdowne Park was not a park, in the true
sense of the word and he reported have a level of comfort with the types of uses being
proposed for the site.
Addressing the issue of the sequence of events and the design competition, Mayor
O’Brien pointed out that his office was having discussions with the entire organization
regarding possibilities in a general manner months before the design competition came to
the table and that he had approached Councillor Hume to suggest some cost-effective
solutions for Lansdowne Park. He remarked that three days later, Councillor Doucet had
made a public announcement regarding the design competition. However, he maintained
that by then, discussions had been taking place, in a philosophical way, for some time.
In response to questions with respect to a deed to Lansdowne Park and limitations with
respect to what could or could not be done on the site, Mr. Rick O’Connor, City Solicitor,
indicated staff had done a title search and had not found any such deed or trust but that a
more in-depth search would be undertaken and the results reported to Council at its 22
April meeting.
Councillor Brooks expressed concerns with respect to the sewer project for the Village of
Manotick. The City Manager confirmed that staff would be following through on
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Council’s direction and would be applying to the Build Canada program to fund the
referenced projects.
Councillor Feltmate asked about funding for the proposed aquarium at Lansdowne. Mr.
Mackay confirmed that the proposal from Marinescape suggested there would be an
upfront contribution from the City of $10M, in U.S. funds, with the suggestion that they
would pay that back through a lease and taxes.
The Councillor maintained that Council had to look at Lansdowne Park as a whole.
Therefore, she wondered if the taxes that would be generated by the proposed retail
development would be enough to cover the City’s costs, not only for the debenture
associated with the OSEG proposal but also for the rest of the development and greening
of the site. Staff confirmed that the entire development, as referenced in the Councillor’s
question, would require additional funds because the tax revenue generated by the retail
development, coupled with the amount the City currently spent on operating Lansdowne,
would only cover the debenture.
Responding to a question with respect to timelines for developing a design proposal for
the entire site, Mr. Mackay indicated the staff report outlined a process that would take
about five months to go through community consultation and build on the work already
done.
Councillor Hunter inquired about the snow dump at the Kanata location and costs of
relocating that municipal facility. Mr. Kirkpatrick indicated, as part of approving the
City’s participation in the Kanata West owners’ group, Council approved that there would
be revenue through the disposal of some of that property in the order of $8 million.
While their request was for donation of the property, there would still be an $8M funding
issue in terms of continuing to fund the City’s partnership in the Kanata West owners
group.
With respect to relocating the facility, staff indicated the facility was slated to be ramped
down and a budget had been identified to acquire new land. To that end, Real Estate
Services was searching now for a new location. However, the funds from the sale of the
referenced property were proposed to be reinvested into the expansion of the Maple
Grove works facility.
Councillor Bloess posed questions with respect to the City’s risks associated with the
Lansdowne Live proposal. Mr. Kirkpatrick referenced the staff report, which indicated
the proposal had score well in this regard on the basis that they would assume any over
expenditures, both on the capital side and operations. However, more work needed to be
done in terms of programming elements and firming up cost estimates.
Responding to a further question from Councillor Bloess, Mr. Mackay confirmed that in
moving forward on the Lansdowne Live proposal, staff would look at what was the
proper mix of retail on the site.
In response to questions from Councillor Holmes, staff estimated the revenues that would
be generated by the retail component would not quite be enough to carry the debenture
costs. There would be a minor funding gap. Mr. Mackay confirmed that staff had hired
the Corporate Research Group to look at the proposed retail, particular the impact it
would have and whether it was sustainable and that their comments were in the staff
report. However, from an impact perspective, staff would want to undertake more work.
Councillor Holmes referenced developing the rest of the site and inquired as to the City’s
debt capacity. Ms. Marian Simulik, City Treasurer, assured Committee that there was no
problem with debt capacity. She explained Council had set an upper target that debt
servicing would never exceed 7.5% of the City’s revenue sources and it was currently at
about 4.4% to 4.5%. Further, she indicated Council had designated what was termed
legacy debt and had not set any limits on this. She suggested this project could qualify
under that definition.
On a Point of Order, Councillor Doucet noted that, on 16 April 2009, he had submitted a
motion of deferral, which should take precedence. Mayor O’Brien confirmed that the
deferral motion would be considered at the 22 April meeting of Council.
At this juncture, Councillor Chiarelli tabled the following motion, for consideration at the
22 April 2009 meeting of City Council:
WHEREAS the City of Ottawa has received an unsolicited proposal from The Ottawa
Sports and Entertainment Group (OSEG), called ‘Lansdowne Live’, designed to
revitalize Lansdowne Park and return a Canadian Football League team to Ottawa;
and
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WHEREAS the public has said that they would like Lansdowne Park to have more
green space, pedestrian linkages to the Rideau Canal, enhanced Trade and Consumer
Show space, and public spaces designed to support community initiatives like the
Ottawa Farmers Market and festivals; and
WHEREAS revitalizing the Civic Centre and Frank Clair stadium are an important
part of the ‘Lansdowne Live’ proposal, and an engineering study has identified that the
structures at Lansdowne Park will require millions of dollars to maintain and restore;
and
Speaking to his motion, Councillor Chiarelli maintained that the City had to deal with
Lansdowne Park and that only one group had come forward with a reasonable and solid
offer to do so. He felt it would be irresponsible for the City to not explore this further.
He noted that the motion called for the City to enter into negotiations to develop what he
hoped would be a better model.
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Before introducing her motion, Councillor Deans asked that the City Clerk’s office
provide clarity, for Wednesday’s Council meeting, as to whether or not her motion would
be viewed as an amendment to the previous motion, tabled by Councillor Chiarelli, or
whether it would be viewed as a stand-alone motion.
Councillor Deans then tabled the following motion, for consideration at the 22 April 2009
meeting of City Council:
WHEREAS City Council has already approved a series of guidelines for the
transformation of Lansdowne Park, including the following:
- That a substantial portion of the existing hard surface area must be reserved as,
and designed as, public open spaces that are green and sustainable, suitable for
recreational use and complementary to Lansdowne Park’s overall function;
- That the Aberdeen Pavilion remain in its current location and plans must preserve
and enhance sight lines to this building from the surrounding streets and from the
Rideau Canal, and the façade of the Horticulture Building be retained;
- That public pedestrian and bicycle access to the Rideau Canal, to the recreational
pathways and gardens that abut Lansdowne Park and links to adjacent parks be
improved;
- That Frank Clair Stadium and the Civic Centre be enhanced;
- That plans recognize Bank Street’s designation as a Traditional Mainstreet in the
Official Plan;
- That the opportunities for use of the site by community stakeholders, such as local
sports groups, should be enhanced;
- That the plan should provide for the continuation of the seasonal Ottawa Farmers’
Market in an exterior public space;
- That the plan should also explore opportunities for outdoor performance and
festival areas;
- That any proposed buildings should achieve a minimum standard of LEED Silver;
- That plans are able to be implemented in a timely fashion, and keep in mind the
City’s financial ability to contribute to the redevelopment; and
WHEREAS any development of Lansdowne Park must respect the scale and character
of the neighbourhood;
Councillor Deans submitted that, regardless of who the City may negotiate with for
Lansdowne Park, the public had clearly indicated there were some things Council should
not give away in any negotiations, that this was a sacred trust and an important public
land. As stewards of this land, she felt Council had to consider the public’s advice. She
noted that although there was not unanimity, there were concerns with respect to how
Council would direct future negotiations and her motion sought to limit the scope of such
negotiations.
Councillor El-Chantiry asked that staff provide a definition of big box retail in time for
the Council meeting.
Councillor Wilkinson, tabled the following motion, for consideration at the 22 April 2009
meeting of City Council:
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WHEREAS the City of Ottawa has received an unsolicited proposal from the Senators
Sports and Entertainment (SS&E) to provide a stadium for professional soccer in
Ottawa; and
WHEREAS the growth in popularity of soccer would benefit from a dedicated facility
and the provision of community fields would be beneficial to the City of Ottawa;
Speaking to her motion, the Councillor submitted it was a companion motion to the ones
on Lansdowne Live. She believed everyone recognized the need to revitalize Lansdowne
Park and that she did not oppose this but she wanted to keep the field open to see if the
proponents could raise the additional funds to provide the facility.
That the tabled motions be referred to Council for its consideration on 22 April
2009.
CARRIED