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Ottawa Financial Committee advisors, led by Mayor Jim Watson, unanimously supported the addition of 10 years to the city’s partnership with Ottawa Sports and Entertainment Group (OSEG) in Lansdowne.
At the beginning of their meeting Thursday, OSEG CEO Mark Goudie described how the public-private partnership ended fiscal year 2019-20 with a net loss of $ 11 million, in part because Ottawa Redblacks ticket sales fell short of expectations.
The pandemic then caused a “perfect storm” that hit the retail sector and the stadium run by OSEG, said Roger Greenberg, OSEG partner and chairman of the Minto Group. OSEG has approached the city to draw on the money it has put into a reserve fund but also to have more time to recoup the losses if its owners – Greenberg, John Ruddy, William Shenkman and John Pugh – spend 40 million extra dollars to resist the pandemic.
Senior city staff informed councilors that the city would be even better protected if OSEG kept the risk of managing the Lansdowne stadium and commercial district until 2054.
“This is not a bailout. They haven’t asked the city for any money, whether it’s a loan or a cash infusion,” said city director Steve Kanellakos. “It’s a business decision. We are in a joint venture agreement and that’s in the best interest of the city and the partnership.”
Coun. Shawn Menard, however, insisted that there is a future value for the amounts the city would give up, if the city agreed not to collect a share of the rents, for example, until 2066, the year the city would share. the cash flow from retail rental. .
What’s the rush to do it now?– June Creelman, vice president of the Glebe Community Association
But after nine hours of listening from residents, city staff and the OSEG on complicated financial matters, Mayor Watson didn’t call the vote and the report was simply approved.
“Thank you for all the money you have collectively invested in this city building project,” said the councilor. Jan Harder told Greenberg and OSEG.
Praise for OSEG, but also questions
Dozens of people signed up to speak on the committee and the first two hours saw many OSEG supporters, from those who raised money with the Greenberg and Ruddy families, to Redblacks podcast hosts and self-described “super fans.”
Greenberg said the OSEG asked supporters to come out to speak to show the non-monetary ways Lansdowne has helped the community.
He said he “gets mad” when people say the city got nothing from Lansdowne, when it was transformed from a “decrepit” site costing the city $ 3.8 million a year.
“I would suggest that the city received everything it asked for, and wanted, in abundance,” Greenberg said, adding that he and his associates did the redevelopment only to give back to their hometown.
Others want Lansdowne to succeed, but have urged advisors to suspend the extension of the complicated deal until it becomes clearer how the pandemic will affect retail and events in Lansdowne, and until the city auditor does not. will present a report on the complicated deal on November 24.
“Can we be sure this is in the long-term public interest? What’s the rush to do it now?” said June Creelman, vice president of the Glebe Community Association.
For now, TD Place is closed and no one knows when the sports teams will play again for large crowds. However, Greenberg is convinced that Lansdowne’s future remains based on having “the sport at the center”.
A working group of councilors, OSEG and municipal staff will be created to work on Lansdowne’s future after the pandemic. Watson has promised not to develop the urban park, but is open to putting more housing on the site.
The OSEG requests will go to the city council for a final vote on November 25, and the council will consider reviewing the long-term financial agreement on the same day.
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