‘Short-sighted measure created out of panic’: Coun. Menard calls Lansdowne report from city ‘troubling’

Capital Ward City Councillor Shawn Menard says he finds the latest report and proposal released by the city on Lansdowne Park “troubling,” and many questions still remain for the councillor as to how the measures in the report will evolve.

Late Wednesday night, the city released its report outlining recommendations to help Lansdowne Park deal with the significant effects of the ongoing COVID-19 pandemic. 

The estimated financial impact is $40 million over the next several years. 

However, the councillor released a statement Thursday, saying that he finds the timing of the report also concerning, alleging that he wasn’t briefed on it until just two hours before its release. This, he says, gave him no opportunity to review or comment on the report in advance. 

“In the report, city staff recommend dramatic changes to the structure of the Lansdowne Park Partnership between the city and Ottawa Sports and Entertainment Group (OSEG), with promises of dire consequences should council not approve this proposal,” he said in a statement. “This report was released later than it should have been in order to be considered at next week’s finance and economic development committee meeting. It was constructed without any input from city council or the public. “

Another reason why the timing of the report is concerning Menard says is because “city’s outgoing auditor general has indicated relevant information exists in his report on the Lansdowne Waterfall scheme and a separate audit follow up on management’s oversight of the contract.”

That waterfall report would be released at the audit committee on November 24, just one day before full council is set to decide on this item. This would leave no time to incorporate those recommendations, Menard explains. 

“The COVID-19 pandemic has taken a toll on OSEG’s business, as it has with so many businesses in our community,” he added. “The city report purports to represent the best way to help OSEG continue without any business case or consideration of other options for the public or councillors.”

Finding a way to help manage Lansdowne during the pandemic is reasonable, Menard says, but while OSEG wants to find a way to continue during the short- and medium-term, the proposed changes to Lansdowne would actually impose long-term changes to the deal. 

“There is no way to guarantee that the proposal will keep OSEG solvent for more than a year, and no contingencies for what happens should we find ourselves in this exact same situation in the near future.”

This leaves many questions to be answered, Menard stresses. Among them:

• What is the cost to the city of removing the participation rent and maintaining base rents at current levels?
• What risk exists to the city by removing the city’s provision to terminate the retail lease without cause? 
• If lifecycle funds are used prematurely and then OSEG decides to leave in the short term, would the city be left with the cost? 
• Does a 10-year extension agreement allow for a continued 8 per cent annual return on equity and minimum equity to OSEG? Or does it further deteriorate the assets the city is supposed to inherit?
• Will the $1 annual rent continue for OSEG's use of the stadium? 
• What will happen with the seven-year “guarantee” of the football team staying in Ottawa, given we are only one year away from that milestone? 

“I am concerned about a short-sighted stop-gap measure created out of panic and without sufficient reflections, which could turn into a long-term liability for Ottawa,” Menard said.

Menard says he will be hosting an emergency public meeting on the issue on Tuesday, November 10 at 6 p.m.

Those interested can register here.