The AG Must Audit Lop-Sided Lansdowne Deals

Your agent was talking yesterday to one of Ottawa’s most respected citizens who has grave concerns about Lansdowne 2.0.

His argument goes something like this.

Ottawa already has an arena that is more than capable of handling the Ottawa 67’s … it’s called the Canadian Tire Centre. Furthermore it has lots of parking that Lansdowne does not.

The top part of the CTC can be closed off so that the usable part of the arena is about 10,000 seats. And no doubt the folks who own the CTC would be overjoyed to have another tenant use the building.

A number of NHL cities have major junior teams playing out of their arenas and it works fine. So before the city spends tens of millions of dollars on a new arena at Lansdowne, perhaps the tall foreheads at Ottawa City Hall could check with the CTC about putting the 67’s there.

City Declares Burn Ban

Furthermore, what Lansdowne 2.0 comes down to is Ottawa Sports and Entertainment Group getting a brand new stadium and arena paid for by the city. More free money for developers. The person with whom I was speaking, not a wild-eyed radical by any stretch of the imagination, is concerned about the overwhelming power of developers over city government. In his words, they are ruining the built-structure of this community.

Another well-respected Ottawan suggested this: if the roof on your house leaks, do you buy a new house? No, you fix the roof. Well the arena at Lansdowne leaks so OSEG wants Ottawa taxpayers to build it a new arena. Why not just fix the roof?

Now if the northside stands are not up to the lofty standards of modern stadiums, perhaps OSEG can put up the money to repair it. When did it become the duty of the municipal government to build sports stadiums for rich, private people? What OSEG wants is for the people of Ottawa to pay for its new stadium and arena. What is OSEG putting up for the capital costs? After all, it is the sole tenant and even operates the stadium and arena.

What did the city get from Lansdowne 1.0? Nothing but a big bill to build new southside stands. And even if the waterfall had worked to its potential, city revenue from the so-called partnership was a pittance … about a million dollars a year that would never pay for the new stands.

Why did city staff sign such a lopsided deal on Lansdowne 1.0? What was in the deal that made staffers and pols such a unprofitable agreement? Did city staff suddenly become incredibly stupid? Maybe not. Yoo hoo … are you there auditor general?

And in fact, that money, had it appeared, went into a fund to repair city buildings at Lansdowne so the city really got no revenue from the partnership even if the so-called waterfall worked. Did the city get revenue from the residential on the site? No beyond the property taxes the municipal government gets from every other building constructed in town.

Then the $4.5 million from the repair fund was turned over to OSEG because of the bad economic conditions caused by the pandemic. Other businesses that struggled with pandemic received no such largesse.

But that begs the question: Now that the repair fund for city buildings is gone, who is paying for repairs? One guess.

Now OSEG wants even more. A bright, shiny new arena and stadium when neither is necessary. The 67’s can play out of Kanata at the CTC and the northside stands can be renovated … like the Toronto Blue Jays, with private money, are doing with the Rogers Centre.

And the NHL Senators built its own arena. It didn’t come begging to the city for funding. It stood on its own. You know, rugged individualism … like no doubt the private entities at Lansdowne support that, just with other people’s money.

What does the city get out of Lansdowne 2.0? Air rights. Is there demand for air rights at Lansdowne or is this just another feeble ploy like the so-called waterfall? How much is air selling for these days?

The city, once again, gets no revenue from residential on the site beyond the usual property taxes. Those usually go to pay for services for those buildings. Instead, these are earmarked to pay for Lansdowne. So who covers the cost of services for the private residential on the site? You and me.

Lansdowne is not a public-private partnership. It is a bill for close to half a billion dollars for Ottawa’s taxpayers. If this is a partnership, no need for relationship counselling. Just go straight to the divorce lawyers. This partnership is so lop-sided that to call it a ‘partnership’ is doing a disservice to the word.

City Creates Open-Fire Tattle Line

Furthermore, if OSEG and its developer ownership are so keen to have a new stadium and arena, Canada’s major banks, some of the biggest in the world, would no doubt be happy to loan these free enterprisers the money to finance new northside stands. And they are rich enough to get those big loans.

But then why get loans and pay interest when you can get free money from a pliant city council and staff.

Why are they so pliant and why are they so keen to get this one-sided deal through council?

The civic auditor general is looking for audit suggestions from the public.

Damn, The Bulldog is doing more than its part to make suggestions for audits to the AG.

Here’s another suggestion. Audit Lansdowne.

Ken Gray

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