Lansdowne loses $11M, committee OK's 10-year extension to OSEG

Councillors on Ottawa's finance committee, led by Mayor Jim Watson, unanimously supportedadding 10years to the city'spartnership with Ottawa Sports and Entertainment Group (OSEG)at LansdownePark.

Early in their meeting Thursday, OSEGCEO Mark Goudiedescribed how the public-private partnership ended the 2019-20 fiscalyear with an $11-million net loss, in part becausethe OttawaRedblacks ticket sales were lower than expected.

• OSEG could bail on Lansdowne Park partnership without city help
• Councillors troubled by Lansdowne report

The pandemic then caused a "perfect storm" that affected the retailsector and stadium that OSEG runs, said OSEG partner and Minto Group chairman Roger Greenberg. OSEG approached the city about tapping into moneyit put in a reserve fund but also to get extra time to recoup losses, if its owners Greenberg, John Ruddy, William Shenkman and John Pugh spend an extra$40 millionto weather the pandemic.

Top city staff advised councillorsthat the city would be evenbetter protected if OSEG kepttherisk of running Lansdowne's stadium and commercial districtuntil 2054.

"This is not a bail out. They have not asked for any money from the city, whether it be a loan or a cash infusion," said city manager Steve Kanellakos. "It's a business decision. We are in a joint venture agreement and this is in the best interests of the city and the partnership."

Coun. Shawn Menard, however, insisted there isa future value toamounts the city wouldgive up, ifthe city agrees not to collect a share of rents, for instance, until 2066the year the city would sharein the cash flowfrom retail rent.

What's the rush to do this right now?- June Creelman, Vice-president of Glebe Community Association

But after nine hours of hearing from residents, as well as from city staff and OSEG about complicated financial issues, Mayor Watson didn't call a vote and the report was simplyapproved.

"Thank you for all the money you have collectively put into this city-building project," Coun. Jan Hardertold Greenberg and OSEG.

Praise for OSEG, but also questions

Dozens of people signed up to address the committee, and the first two hours saw many OSEG supporters, from those who have fundraised with the Greenberg and Ruddy families, to Redblacks podcast hostsand self-described "super fans."

Greenberg said OSEGasked supporters to come out to speak to show the non-monetary waysLansdowne has helped the community.

He said he "bristles" when people say the city hasn't gotten anything from Lansdowne, when it has been transformed from a "decrepit" site that cost the city $3.8 million a year.

"I would suggest the city has received everything itasked for, and it wanted, in spades," Greenberg said, adding he and his partners did the redevelopment only to give back to their hometown.

Others want Lansdowne to succeed, but called on councillorsto hold offextending the complicated dealuntil it's more clear how the pandemic will affect retail and events at Lansdowne, and until the city auditor submits a report on the complicated agreement on Nov. 24.

"Can we be sure this is in the public interest long-term? What's the rush to do this right now?" said June Creelman, vice-president ofthe Glebe Community Association.

For now, TD Place is closed, and no one knows when sports teams will play again for large crowds. Still, Greenberg is convinced Lansdowne's future remains based on having "sports at its core".

• Residents question extra 10 years for OSEG at Lansdowne

A working group made of councillors, OSEGand city staff will be created to work on the future ofLansdownepost-pandemic.Watson vowed notto develop the urban park, but is open to putting more housing on the site.

OSEG's requestswill go to city council for a final vote on Nov. 25, and council will consider the audit of thelong-term financial arrangement the same day.