Lansdowne debate resumes in earnest
Foes fear growing city debt; friends call stadium world-class
By Maria Cook, The Ottawa CitizenApril 9, 2010
As deadlines approach for a decision on renewing Lansdowne Park, the debate about the way forward resumed in earnest at City Hall on Thursday.
Ian Lee, director of the MBA program at Carleton University's Sprott business school, said it was a bad deal for taxpayers to spend $129 million to renovate Frank Clair Stadium, particularly since the city would be borrowing in the face of a debt crisis and rising interest rates.
"We're providing the land and the capital, and I don't see what we're getting back," Lee said during a press conference held by Capital Ward Councillor Clive Doucet. "The people who are benefitting are the owners of the sports teams."
Kevin McCrann, spokesman for the Ottawa Sports and Entertainment Group, said the developers would spend $30 million to bring a Canadian Football League team to Ottawa.
"We're building the retail component and parking, and we're contributing to the front lawn," McCrann said. "We're also inheriting the losses of operating the stadium for years to come.
"There are very few stadiums that are privately built. This is Ottawa's world-class open-air stadium. It will host Carleton University football games, soccer games, concerts. It's a public facility. We think it's a fair proposal."
City council's final vote to approve the Lansdowne Partnership Plan is scheduled to take place in June. The results of a design competition for the public space will be unveiled May 13. A transportation study is also under way.
Lee said most stadiums built in the United States in recent years have had large amounts of private money behind them.
For example, at University of Phoenix stadium in Glendale, Arizona, which opened in 2006, the public contributed $344 million and the private sector $104 million.
At Lincoln Financial Field in Philadelphia, which opened in 2003, the public cost was $202 million, while the private sum was $310 million.
"The message is that it can't be built unless the public sector builds it," Lee said. "That's not true."
The city plans to borrow $116.9 million at 5.35 per cent interest over 40 years, with a repayment of $283.9 million. The city's current debt is about $550 million.
"Every government is moving forward into an economic environment where interest rates are going to go up dramatically," Lee said. "Is it prudent to borrow like there's no tomorrow?"
Also at the press conference was "concerned taxpayer" Jean-Marie Leduc of Ottawa. He recently returned from the Vancouver Olympics, where he displayed his collection of vintage skates.
While in British Columbia, he visited Fort St. John, population 19,000. It recently built a sportsplex featuring two NHL sized ice rinks, an Olympic-sized speed skating oval, a figure skating facility, 12 dressing rooms, a 400-metre running track, meeting rooms and more.
It cost $41 million, with local taxpayers paying $15 million and the province contributing $26 million. In addition, the federal government has given $5 million for the parking lot.
"It's gorgeous," Leduc said. "I think we can do much better (than Lansdowne Live.)"
Doucet said Lansdowne was not eligible for provincial or federal funding because it was a sole-source project.
© Copyright (c) The Ottawa Citizen
source