NCC to consider extension for RendezVous LeBreton deal today

Last-ditch negotiations between Trinity Developments and the Ottawa Senators to salvage their troubled partnership have led to a request to extend the termination deadline for the$4-billionLeBretonFlats project by more than a month, CBC has learned.

• CBC Ottawa's coverage of the LeBreton Flats redevelopment

RendezVousGroup the consortium led by Senators' owner EugeneMelnykand Trinity's John Ruddy had been selected by the National Capital Commission (NCC)more than two years ago to redevelop the barrenLeBretonFlats into a community that included a new sports arena and more than 4,000 residential units.

But the relationship was revealed to betoxic in late November whenMelnyk'sCapital Sports Management Inc. sued Trinityand project manager Graham Birdfor $700 million.

Ruddyanswered last month withabillion-dollarcounterclaim, allegingMelnykwas trying to avoid paying for the arena because he couldn't afford it.

Deadline could be extended to Feb. 28

OnDec. 19, the NCC board decided to pull the plug on the deal itsigned withRendezVousa year ago.

The termination was to take effect in 30 days, which would have left the NCC board free to make an unfettered decision about what to do at its meeting next week.

But in early2019, the two feuding partners said they would try mediation to try to salvage their deal, tappingformer Ontario chief justiceWarrenWinkler to oversee the discussions.

Winkler has asked the NCC to extend the termination notice until Feb. 28 while he continues the mediation, the agency has confirmed.

On Monday afternoon, the NCC board will be convening a teleconference meeting to discuss Winkler's request, but it's unclear whether they will vote on it.

If the board doesn't extend the mediation, theRendezVousdeal will die at the end of this week.

Could Melnyk take a smaller role?

Neither Capital Sports nor Trinity would comment about the request for an extension, asthe mediation is confidential.

However, in a statement released onDec. 18,Melnykoffered to take a smaller role in the partnership.

Instead of being 50-50 partners with Trinity,Melnykproposed forgoing all revenue from the commercial development ofLeBretonFlats, while Trinity would pay to build the arena.

Under this scenario, the Senators would pay for the arena's"operating and life-cyclecosts during the term of its lease."

At the time, Trinity dismissed the offer, arguing it was no different fromMelnyk'searlier demands that someone else pay to build the events centre.

Yet according to sources familiar with the mediation, this scenario is one of the options being considered, as well as the possibility of bringing in new people into the partnership.

This is not the first time that the partners have entered mediation, however.

According to the Trinity counterclaim, the developer and Capital Sports could not agree on a letter of intent that would set out the terms under whichRendezVousLeBretonwould go forward.

Just three months after the NCC chose them as the preferred developer forLeBretonFlats, the parties enteredmediation to work out how the partnership would move forward.

"The mediation took place on July 14, 2016," according to Trinity'sstatement of defence.

"It was unsuccessful."