Tuesday , January 31 2023

LeBreton Flats FAK: What does this mean for Senator Eugene Melnik


Senators in Ottawa have emerged on the way to a new arena closer to the city center, but a series of disagreements between the team's owner Eugene Melnik and Triniti Development Group Inc. Chairman John Ruddy put those plans on hold. Melnik sued Rudi for $ 700m, who confirmed Melnik on Tuesday for a billion dollars. Then, the National Capital Commission announced that it is moving towards the abolition of the development agreement with Melnik and Rudi on Wednesday.

Here's where the situation stands and how it came to this point.

Where's LeBreton Flats?

It is located 1.5 km west of the parliamentary area, LeBreton Flats is a plot of 21 hectares (52 hectares), located right down the hill from Parliament.

Is the country vacant?

After the war of 1812, LeBreton was part of a major trade route along the Ottawa River and developed into an industrial area until the end of the Second World War. The massive fire in 1900 destroyed the site, but it was restored.

Through the 1950s, LeBreton was a blend of industrial use and residential buildings, but in the 1960s, the federal government expropriated the area to make room for the new government campus. Finally, the planned government offices were located elsewhere, and the apartments are virtually empty to date. The National Capital Commission (NCC) became the location guard in the 1960s. Among the most recent events in LeBreton are the Museum of Wars, built in 2005, and the National Monument of the Holocaust, opened in 2017.

What is NCC?

As a source from its website, the National Capital Commission is a federal corporation that created the Canadian Parliament in 1959 under the National Capital Act. His predecessors were the Federal District Commission of 1927 and the Ottawa Advancement Commission, created in 1899. The NCC reports to Parliament through the minister responsible for the national law on capital and has three important roles: long-term plans for federal states; Chief Manager of nationally important public places; a creative partner dedicated to excellence in development and conservation.

Imagine this body as an urban planner for the main region, striving to improve the natural and cultural character of the capital. Does he do anything? The NCC has long been criticized for allowing the LeBreton Flats to lie in peace for decades. Finally he opened the door to private development and a huge proposal that he approved on this vast soil imploded before he got the first shovel in the country. Back to the drawing board. NCC employs more than 400 people and owns and operates more than 11 percent of all countries in the capital.

What's the latest about the LeBreton project?

This week NCC terminated the "Preferred Meeting List" signed on January 19, 2018 between RendezVous LeBreton and NCC. Termination shall be effective within 30 days of the date of this notice. In this way, out of the marvelous last ditch that brings RendezVous again, the group's offer will be disbanded until the NCC holds its next meeting at the end of January and can begin raising the pieces toward the development of LeBreton Flats.

What's next?

NCC is expected to provide some future direction to LeBreton in late January or early February. There are many options open to the NCC Board, including hitting the LeBreton Break button to reconsider the possibilities, start the bidding process, or enter into negotiations with the Devcore Canderel Group, which filed a claim against the RendezVous LeBreton Group two years ago.

On the. February 4, Tobi Nussbaum, a former Ottawa city councilor in Ottawa, assumes the role of NCC director, and the LeBreton file is expected to be a priority. Nussbaum, 48, is a bilingual lawyer with a public administration degree at Harvard University. He was, to a large extent, a progressive voice on the Ottawa Council's issues, with a focus on community interests and public consultation. "This is not someone who would give karate to the private sector," wrote reporter Jon Ottawa Citizen Citi Jon Villing.

Regardless of the next step, the NCC will not have to start the process entirely from the beginning, because there have been several months of exploring the task of removing contaminated land on site, as well as talking to people of the First Nations, because Apartments are on the traditional Algonquin territory.

How and why did the RendezVous LeBreton group form?

From the outset, the partnership between Eugene Melnik and the senator with John Rudi and Trinity Developments was a necessary evil; separated businessmen forced to try to work together because there was really no alternative.

The Trinity was invited to the then-chairman of Senator Ciril Lehner because the company could undertake a massive project like LeBreton. Melnik has an arena and a team that should form a significant component of the entire project. Melnik was never a fan of the Ottawa Sports and Entertainment Group (OSEG), who rearranged Lansdow Park and owns and operates CFL Ottawa Redblacks, Furi football and OHL Ottawa 67th. Ruddy is the founder of OSEG and was the driving force behind the return of CFL football to Ottawa after a nine-year absence.

On the contrary, Melnik once tried to bring MLS football to Canada and refused. In theory, Melnik and his new partners in RendezVous singled out the past and worked together to implement this project. They reached the starting line, mostly from Leeders who work with Trinity, gaining approval from the NCC. In the early stages of the project, it was understood that Melnik would be responsible for the financing and design of the arena / entertainment complex. Three would take over the lion's share of the rest of the project.

What was the proposal for RendezVous LeBreton?

In a principled agreement of January 24, 2018, the NCC agreed to sell the land to the RendezVous LeBreton group in order to generate a $ 4 billion development, involving an array of 18,000 seats for senators, a skyscraper with a "green roof" and a view of Ottawa and Parliament.

The project, which was first approved in April 2016, included a Center for Strong Capacities that promotes health, rehabilitation and recreation, a common market, two shared landslides, aqueduct, housing and retail. All this within a walking distance from the main transit hub for flying railways, which has been developed as part of a wider urban plan. The construction was supposed to begin in 2017 or 2018, and the arena was completed by 2020 or 2021. "We will deliver everything we said we will do," Melnik said on the day RendezVous won the prize.

Where did the project stand?

Looking back, current challenges, pre-election procedures, from both camps have clearly shown that there will be a cold day in hell before the two sides will ever be able to work together. Not when it was not possible to get two protagonists in the same room. Yet, exceptionally, the NCC is not quite aware of the degree of discourse when it announced on November 23 that RendezVous LeBreton had two months to tackle together if he wanted to continue the project. A day later, Melnik sued Rudi.

Why Melnik sued Rudi for $ 700 million?

Through his company, Capital Sports Management Inc. (CSMI), Melnik argued that Ruddy had a "grave conflict of interest" in planning the construction, outside the LeBreton agreement, but not far from the site, a high tower complex of about 1,300 flats, along with retail and business premises at 900 Albert St The CSMI lawsuit filed at the end of November included the RendezVous Project Manager Graham Bird and his company. Melnik said that the development of 900 Albert in "direct competition" with the LeBreton project.

Why Ruddy sues Melnik for $ 1 billion?

It's no surprise that the sound we heard this week was one of the other boats that fell with thunder. Ruddy filed a $ 1 billion suport suggesting that 900 Albert is a "complementary" project and that Melnick's financial situation was such that he was trying to get a free $ 500 million arena, hoping the city of Ottawa or Trojica would build. According to Rudy, Melnik wanted 30 years of free rent, instead of taking over the construction of the arena.

Namely, on the same day the same day was filed with Ruddia's counter-attack, CSMI issued a statement in which he offered to build tenants of the hockey team in the arena that was built, owned and operated by the Troika. Rudi's reply: "Our court applications today clearly showed that Mr. Melnik and CSMI are seeking the free arrangement of local taxpayers and the Troika … the letter from Mr. Melnik not only confirms this fact." According to Ruddy's defense, CSMI avoids its financial responsibility as stated in the original agreement. None of the requests or oppositions have been tested in court.

Can Cirkue du Soleil save the day?

Maybe. In the spring of 2016, a competitive offer for RendezVous was presented by the Kuebec group, Devcore Canderel DLS, Andre Desmarais of Pover Corp, Gui Laliberte, co-founder of Cirque du Soleil, and Gatineau innovator Jean-Pierre Poulin. At that time, NCC opted for RendezVous's less ambitious, more precise plan.

Although the NCC is not able to simply assign development to Plan B, Devcore could be invited to resubmit an offer, possibly finely tuned from a rejected proposal that includes a car museum and aquarium. Devcore suggests that the NCC has a legal obligation to cooperate with them, if RendezVous fails. The new Devcore plan may or may not include NHL sliding. Poulin said this week that Devcore will leave the "reserve player" for the NHL arena.

Will the NHL turn on?

The lawsuits that flew and LeBreton collapsed, NHL commissioner Gary Bettman did not want to comment on the situation in Ottawa, but it is clear that the league closely monitors the events here and to do as much as possible to facilitate the move to LeBreton Flats if it can. The head office of the league has often said that senators belong to the city. Melnik turned back and forth as to whether Senators must be in the center of the city.

Will Ottawa ever have NHL in the center?

The will is there to make this happen. Interests for business and fans are centered on a central location for the Ottawa sports team in the main league. The NHL wants the Senate to get a new arena since the current facility is approaching 23 years and is continuously requiring repairs and upgrades. In addition, the CTC is distant and dependent on cars, more than 25 kilometers from the city center and much further for residents of Orleans and Ottawa. Many in the region consider moving to LeBreton as a panacea, especially if it involves a change of ownership.

Under Melnik, the presence has been marked in the past two seasons and there is concern that there are no financial resources to run a competitive NHL operation. Do you see new stones new property? Melnik said that he would never be a tenant in another building, but he seemed to change his melody, so moving to Devcore could be an opportunity.

For those who remember the long odds against Ottawa who won the franchise NHL in 1990, it seems that the move in the center of the city with the existing team seems to be a very successful way of comparison. From the perspective of hockey, the risk of starting with LeBreton is that it could open the door to a revised plan that does not include the main arena.

What do the players think?

Senator Mark Boroviecki, Senator, grew up in Kanata as a fanatics senator, still living near the team's Arena in Kanata and driving down the street to join the party when Ottawa hosted the 2008 draft and was named after him. He escaped from the floor, stunned, after he realized that he had drawn his home team, 139th overall.

"I will not pretend to understand or understand (LeBreton's unsuccessful proposal), I can only speak as someone who grew up here, playing here and probably will live here in the future – I mean on the skating rink of the city is something that the city ends need, "said Boroviecki.

"I am not at the negotiating table, but as someone who plans to stay here for a long time as a resident, it would be nice to be able to bring our children to the center of the game. We hope that things will work out.

"I looked at you (planned) drawings and my first impression was – Wow! I have to sign up for Realtor.ca and buy a house in Ailmer (over the Ottawa River). Let's be realistic, I said I'll probably be away from this league until the moment it circulates. Even more, now (with an unsuccessful bid), "added the 29-year-old.

"I hope it's something that can come back and figure out … Look around, Edmonton has a beautiful new slide in downtown, Detroit just got one. I think it would be nice to be part of it, but that's beyond me."

As always when it comes to senators, be prepared for the reversal and development.

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