A financial report released on July 4 last year says the projection of revenue from the site for the next 30 years is $508 million. Of that total, the City of Ottawa is expected to receive $33 million.
The municipality poured $211 million into refurbishing the stadium and arena on the site plus building a park. It also leased commercial land at Lansdowne for a nominal fee for 30 years plus two 10-year options.
While it is difficult to estimate how much the commercial land would raise if it were rented at market rates, no doubt the sum is substantial. However the $211 million put in a bank savings account at today’s modest rates would earn $114 million over 30 years not counting compounding while revenue coming from the city’s part of the waterfall over the same period would yield the aforementioned $33 million. A simple investment in a savings account would much more than triple the revenue that the city receives from Lansdowne.
Nevertheless according to the report, Lansdowne has been a great success.
“The original objective of the partnership between the City and OSEG was to revitalize Lansdowne Park. Given the level of activity at Lansdowne and TD Place in the first three years of operation it is safe confidently say that the excitement has returned to Ottawa’s traditional central gathering place. Anyone who attended the Grey Cup parade on Bank Street or in front of the Aberdeen Pavilion last November can attest to that.”
The municipality also touts the estimate that in 30 years the city is expected to receive $1 million more than originally expected.
In fact city revenue from Lansdowne goes into a fund to conduct repairs to city properties on the site.
Still city staff is enthusiastic about Lansdowne:
“As Ottawa celebrates Canada’s sesquicentennial year, Lansdowne will be a destination for many visitors to our City. Ottawa has a lot to see and do and OSEG is proud that Lansdowne has so much to offer our visitors. The 2017 Grey Cup and Grey Cup Festival are estimated to bring over 200,000 visitors to Lansdowne and generate $100 Million in economic activity for our City. RNation is looking forward to welcoming the nation to our City.
“In closing, 2016 was a year of continued growth and success at Lansdowne and 2017 is positioned to be even better.”
To read the report, click on the highlighted type below:
The snowy Grey Cup held in Ottawa last year.
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