NCC says there's a 'will on both sides' to get arena deal in place with Senators (2024)

Where there’s a will, there’s a way.

With the clock ticking towards a Sept. 20 deadline for the National Capital Commission and the Ottawa Senators to get a deal in place to build an events centre at LeBreton Flats, both parties remain confident they’re on track to get a lease agreement done.

Responding to a question from Postmedia following the NCC’s board meeting held Thursday at the organization’s headquarters on Elgin St., chief executive officer Tobi Nussbaum indicated the talks are focused on finalizing an agreement without having to extend the deadline.

Article content

“The conversations are continuing,” Nussbaum said. “This is unfortunate and I wish I could give you more, but this is just to reassure you that the conversations are ongoing and there is a will on both sides. That is clear. Both sides are hoping to be able to come to an agreement.

“At the same time, it’s a complex project, as you know, so we gave ourselves until September. We’re only in June and we have three more months. I think both sides are committed to use that period to see if we can come to an agreement.”

The Senators were chosen as the preferred bidder in June 2022 and signed a memorandum of understanding (MOU) with the NCC to get a lease agreement in place by Sept. 2023. Ottawa owner Michael Andlauer and his partners were given a one-year extension by Nussbaum last fall.

Andlauer and Senators president Cyril Leeder both understand the importance of getting a deal done at LeBreton. They’ve made it clear they’d like the team to be closer downtown and have close proximity to Gatineau, but the organization isn’t going to do that at any cost.

We’re at the point in this negotiation where it feels like push is going to come to shove. The discussions the two sides have had been cordial and progress has been made, but the reality is these talks need to get to a place where both sides feel comfortable with signing off.

Article content

When we asked Nussbaum if he feels the discussions are at a tipping point, he stated after the NCC’s last meeting in April that they do have a Plan B in place.

“I don’t want to prejudge where we’re going to be in September,” he said. “It’s fair to say there will come a time where the two sides will say, ‘Hey, it’s worth continuing the discussions or we’re at a point where we don’t think that an agreement can be reached,” Nussbaum said.

“It’s going to be amicable either way, in the sense that there’s will there and there’s a commitment there, and if it doesn’t happen, it’s probably because the project is hugely complex. But it’s not due to a lack of interest (in getting a deal) by either party.”

The NCC has set aside a seven-acre piece of land on Albert Street between Preston Street and City Centre, just west of Ottawa’s new central library, which now is under construction.

Under the current scenario at LeBreton, sources say the Senators are concerned they have little to no room for public parking and the organization would have to rely on light-rail transit. Mind you, there are two stations with access to LeBreton.

Article content

As we know, the LRT system is troubled, to say the least, and yes it will get figured, but the Senators don’t want that to be the only way in and out of the rink. The club also wants land for an arena district with bars and restaurants as a gathering place.

Nussbaum has noted publicly there is flexibility for more space. There has been talk amongst developers in town that could as much as five or six more acres, which would allow the club to build an arena district.

Andlauer has set up a committee from his partners of real estate experts that are focused on next steps for the new rink.

The committee includes Senators alternate governor George Armyon, a Halifax developer and Paul Paletta of Alinea Holdings along with Shawn Malhotra of Ottawa-based Claridge Homes. All three bring experience in real estate and business development.

Andlauer has estimated a new downtown arena — no matter where it’s located — will cost at least $900 million and, if it’s going to happen, it has to make financial sense.

Andlauer has pointed to the arena district in Edmonton that was built around the 20,000-seat Rogers Place Arena, which opened in Sept. 2016. The Oilers paid approximately $153 million of the more than $600-million arena project in Edmonton while the city fronted the rest of the money.

Article content

However, the city is receiving its money back through a rent deal with Oilers owner Darryl Katz, plus a ticket surcharge. Also, $100 million was provided for the project through different levels of government and the Senators also have explored this route.

Nussbaum is confident this all will work out in the end.

“It’s going in the right direction,” he concluded. “Whether or not there’s a deal to be made depends on these very complex details. What I want to reassure you of is I’ve been impressed with the two teams, the fact that they’re talking, they’re meeting and they’re committed to advancing the project.

“I remain optimistic on the project, but realize there’s still a lot of work to be done.”

bgarrioch@postmedia.com

Article content