On Nov. 7, the mayor of Ottawa is urging city council to press go on Lansdowne 2.0 and “finish the job” started nearly two decades ago.In the spring of 2019 — about five years after the renovated park near the Rideau Canal started opening — the City of Ottawa’s partner at Lansdowne Park, the Ottawa Sports and Entertainment Group (OSEG), pitched a major rethink given disappointing financial results.The next year, OSEG approached city council during the pandemic, concerned about how to draw more visitors to the site in the Glebe and avoid defaulting on their agreement. A working group got reports that showed the facilities were past their prime and came up with a vision for new north-side stadium stands and a new arena on the existing park berm.The design and price have been fine-tuned over the years, under councils led by mayors Jim Watson and Mark Sutcliffe. Three towers hovering over the site later became two. Lansdowne 2.0 gets city council’s stamp of approvalIndeed, the plan for Lansdowne 2.0 would see modern facilities that meet accessibility standards, include universal washrooms and dedicated dressing rooms for the Ottawa Charge women’s hockey team, and add premium seats and boxes to boost the fan experience. This week, the final reports have been published, the contracts are ready to be signed, and supporters and opponents are getting ready for a big debate Oct. 29.How much will Lansdowne 2.0 cost?It depends on what is included. The figures released by city staff this week show the project is now estimated to cost $418.8 million. That includes the arena and northside stands at just under $300 million and a few million for spaces and a “grand entrance,” about $77 million for consultants, design, permits and other business costs, and $36 million for 10 per cent contingencies.Beyond that, the report describes $45.7 million to build two storeys of retail under the towers and another $19.2 million to build the underground parking, but those are broken out as separate figures. The city is to continue owning the parking and retail, the report says.The city’s auditor general had projected in June 2024 the cost would be closer to $493 million and will produce her second report in early November based on these new documents.How will the city pay for it?If one looks only at the $418.8 million figure the city presents, the breakdown looks like:About $48.3 million from the air rights sold to a developer to build towers.$32.3 million from the funds for Lansdowne 1.0.$15.6 million from city reserves.$6 million from raising the hotel tax by a percentage point in the next few years. The vast majority will be paid using $331 million in debt issued in 2030, with interest payments starting in 2031.In the early years, the report says servicing the debt will come from the city’s operating budget, but eventually, “new revenues” will offset most of it. Here’s how the city proposes covering that $331 million in debt from 2030 to 2070:$118.4 million from the city’s “waterfall” financial deal with OSEG.$82.7 million paid by the city, about $4.3 million a year.$69 million from future property taxes from the units in the two towers.$38.1 million from the municipal accommodation tax (after 2030).$15 million from a ticket surcharge.$7.7 in rent paid to the city.According to the report, the November 2023 projections said total waterfall projections would be $716.8 million. That’s now up to $1.07 billion, with the arrangement being extended from 2066 to 2075.According to the projections in the report, more than 72 per cent of that money would only flow after the year 2052. Projections about the revenues from Lansdowne have shifted within months, not just decades. Last February’s published annual report showed projections that were $43 million better than the one published in tandem with the Lansdowne 2.0 reports.The city is also responsible for any arena and northside stand cost overruns.How are the number of seats changing?Those numbers have also moved.OSEG and the city have been speaking about 5,500 seats in the arena and 11,200 seats in the new north-side stands for several years. Those are the figures in the applications with detailed architectural design drawings that were approved last May. They were stated in the procurement tenders the city posted earlier this year.Designs for Lansdowne 2.0 critiqued as city prepares for building permitThe number of seats has been a hot topic, however, because the existing arena can seat more than 9,000 and the Charge has sometimes sold out.The main staff report now describes 6,600 seats for a hockey game and 12,400 capacity for the northside stands, while the partnership agreement continues to use the earlier numbers. CBC News has asked the city for clarification. New renderings this week include the inside of the Lansdowne 2.0 events centre, also known as its arena. (City of Ottawa)How much will tickets cost? It’s not clear, but a few factors point to some seats being more expensive. The Lansdowne proposal includes a ticket surcharge that is expected to bring in $300,000 a year.A team or event’s most profitable operations are usually the premium seating, the staff report says, and the new arena promises 11 suites with capacity for 262 people, four loges for 117, and club seat section for 426. The future Lansdowne 2.0 proposes more modern, premium fan experiences than the existing 1960s hockey rink can provide. (City of Ottawa)The stadium stands also have 12 new loges, a premium club and other club seats. When asked if residents might be priced out of attending a municipal facility, the mayor said decisions about ticket prices are not made by the city and he would leave it up to OSEG to decide on future ticket prices.“They understand the marketplace. They’re in this business,” Mark Sutcliffe said. “They know what the right level of ticket price is to serve their constituents and their customers and to generate the biggest crowds for their events.”Sutcliffe also pointed to how fans will have a much better experience, with brand-new facilities and no leaky roof. LISTEN | Sutcliffe’s interview on the project on Tuesday:Ottawa Morning11:45Lansdowne 2.0 cost stays put at $419M as city reveals builderOttawa Mayor Mark Sutcliffe makes the case for the project.How long is the City-OSEG partnership? The original partnership signed by city council in 2012 was supposed to end in 2044.But in November 2020, the pandemic was keeping people in their homes. Sporting events were cancelled. OSEG went to the city saying it could default on the partnership without immediate help from the city.OSEG could bail on Lansdowne Park partnership without city helpResidents question extra 10 years for OSEG at LansdowneThe partnership had never made money — the latest annual report released this week shows it still doesn’t — but council agreed in 2020 to extend the deal to 2054, with Watson arguing it would give OSEG a longer period to recoup their losses. By May 2022, staff were recommending the agreement add another 12 years, bringing it to 2066 to line up with the end of the retail lease.Now, the current batch of reports proposes a partnership with OSEG through 2075 to better line up with the 40-year debt for Lansdowne 2.0. One of the many decisions council will face in November will be to approve 21 amendments to a long list of agreements approved back in 2012. If it goes ahead, the waterfall agreement would be in place for 61 years total — more than double the original plan.Who did the city choose for two contracts? The city got three fixed-price bids from companies wanting to be the general contractor that builds Lansdowne’s stands and arena. The city’s estimate had been $316 million, and both EBC Inc. and Pomerleau came in very close to that. Ellis Don bid $344 million, the report says. Staff propose they sign a contract with EBC Inc. for the negotiated price of $312.82 million, which is valid until Jan. 16. EBC Inc.’s many projects include building the expansion of the Percival-Molson Stadium at McGill University, the Ottawa Art Gallery, and aquatic centres.If council signs off, they would start preparing the site for the new arena almost right away and aim to finish it by July 2028. The stadium stands would come second, from November 2028 through November 2030, affecting two Redblacks seasons.A rendering of the PWHL dressing room in the Lansdowne 2.0 project. (City of Ottawa)Meanwhile, Mirabella Development Corporation gave the city a concept of two towers of up to 40 storeys and 700 units, which could be a combination of condos, apartments or hotel rooms. If council approves it, the city would sign an agreement of purchase and sale for $65 million with Mirabella, a company the city says has experience in Canada and Asia. The city would plan to finalize the sale and hand over the title to the air rights in late 2031. The buildings would be finished by the end of 2034.Back in April, the fairness commissioner’s report says the city also received an offer from Trinity Development Group, whose founder John Ruddy is a partner in OSEG. How much more parking will be built?The 2023 business plan report discussed 371 parking stalls for 700 units, a significant drop from the original OSEG proposal of 739 spots for three towers.Now, the city says Mirabella had indicated it was a must for the units in the towers to have exclusive rights to the 140 city-owned parking spots in Lansdowne 2.0. Of the $65 million in air rights, the report says $10 million is for that parking. The report also describes how Mirabella’s “innovative” concept also proposes three levels of decked parking with another 180 spots between the north-side stands and the city-owned retail.Add to that 220 below ground parking spots and 35 spaces for the events centre, and parking appears to now stand at 575 spaces.This new rendering suggests how Lansdowne Park would look after all proposed Lansdowne 2.0 work is done. (City of Ottawa)How long before a final decision?Members of the public have eight days with the documents before the finance and corporate services committee will hear delegations at a meeting on Oct. 29. Council members have 17 days from the time the Lansdowne documents were published on the city’s website after work hours on Oct. 20 until they are asked to approve the project and “hit go” at a special meeting on Nov. 7. In a direction to council, Barrhaven East Coun. Wilson Lo had asked city staff to ideally make the report public for councillors 30 days before the vote. In a document attached to the many reports, staff say they made the report public as “early as operationally feasible.”But it’s not just councillors. Auditor general Nathalie Gougeon has also been waiting on the facts and figures to finish her second audit into Lansdowne. She says her office has been left with little time to draw conclusions and finalize its work. That Lansdowne 2.0 audit goes to audit committee on Nov. 4, just three days before council holds its final vote.LISTEN | Kate Porter breaks down the reports:Ottawa Morning15:23Lansdowne 2.0 final report raises questions and concernsCBC Ottawa reporter Kate Porter joins us with her analysis.
Key numbers from Ottawa’s final Lansdowne 2.0 report
