Ottawa·NewThe total price tag for Lansdowne 2.0 hasn’t budged in two years, as the project moves toward a final decision at council on Nov. 7.City to release name of builder later Monday as council prepares for final vote on Nov. 7The latest vision for Lansdowne 2.0 includes two residential towers and no green roof atop the relocated arena. City council will vote on the plan next month. (City of Ottawa)The total price tag for Lansdowne 2.0 hasn’t budged in two years, as the project moves toward a final decision at council.But the city is also banking on about $25 million more than expected through the sale of air rights for two towers on the property.Mayor Mark Sutcliffe held a news conference to discuss the project on Monday, just hours before a final report was set to go public in the afternoon. With bids in for the project, the actual construction costs are now $313 million dollars, while the total project cost is now set at $418.8 million. That’s almost precisely the same $419-million price tag revealed in a previous 2023 report.But Sutcliffe said the welcome surprise on air rights means that after accounting for all revenues generated by the project, the net cost to taxpayers will be $130 million. Successful bidder to be namedThe report is expected to name the successful bidder for construction of the project, which will demolish and rebuild both the north stadium stand and the arena at TD Place.The report is set to come to a meeting of council’s finance and corporate services committee on Oct. 29, before heading to council for a vote on Nov. 7.The Lansdowne 2.0 project has already jumped through a lengthy series of hoops at city hall, with council approving a concept and financing plan in 2023, followed by a procurement model last year. But next month’s vote will be the last chance for councillors to decide whether the project goes forward. The 2023 plan put an estimated price tag of $419 million on the project, but the city’s auditor general later warned that the number could be understated by more than $74 million. The 2023 figure was itself $86 million higher than an earlier estimate.The city plans to use debt to pay much of that bill, though it was also counting on $39 million from the sale of air rights to build two residential towers on the property. On Monday, Sutcliffe said that the city has raised even more than expected through that sale — about $65 million — allowing it to put more money toward both Lansdowne 2.0 and affordable housing.Waiting will cost more, mayor warnsThe financing plan also budgets millions more from the higher property taxes the city will eventually charge on the development. Still more money would come from retail earnings and a surcharge on tickets for games.Sutcliffe has argued that it would be more expensive to put off the project, as obsolete and decrepit facilities at TD Place make holding events there less attractive.”If we wait, we’ll spend more and we’ll get less. If we invest now, we’ll spend less and we’ll get a lot more,” he said.But the plan has attracted dedicated opposition, with critics arguing that the city is taking on colossal financial risk for a project that will remove green space, reduce seating capacity and increase ticket prices.Lansdowne 2.0 would replace the arena with an event centre with capacity for 5,500 people at hockey games and 6,500 at concert events, less than the current seating for 9,500 at the civic centre.It would also demolish and rebuild the north side stadium stands, which would reduce seating capacity from 14,000 to 11,000.Net losses every yearLansdowne is currently operated through a partnership of the city, which owns the buildings, and Ottawa Sports and Entertainment Group, which owns sports franchises like the Ottawa RedBlacks and Ottawa 67s.The partnership has posted net losses every year since it started operations a decade ago, and has never distributed a payment to the city. Under the current arrangement, it’s not expected to ever do so. Sutcliffe has framed the redevelopment plan as a chance to make the partnership financially sustainable.In 2024, the city promised to post the solicitation documents in their entirety when the construction tender was issued. That never happened, with the city’s chief procurement officer telling CBC that the documents were shared exclusively with pre-qualified bidders.That same year, Coun. Wilson Lo also directed staff to release the final report on Lansdowne 2.0 as soon as possible, and ideally 30 days before the council vote.Monday’s release means that councillors and the public will have fewer than 20 days to review the document.ABOUT THE AUTHORArthur White-Crummey is a reporter at CBC Ottawa. He has previously worked as a reporter in Saskatchewan covering the courts, city hall and the provincial legislature. You can reach him at arthur.white-crummey@cbc.ca.
Lansdowne 2.0 cost stays put at $419M as city releases final report
