Lansdowne proposal gives developers 30-year monopoly on new stadium
http://www.ottawacitizen.com/sports/...107/story.html
BY NECO COCKBURN , THE OTTAWA CITIZEN JUNE 25, 2010 8:02 AM COMMENTS (14)
OTTAWA — The president of Senators Sports and Entertainment isn’t happy with clauses in the proposed Lansdowne redevelopment agreement that he says would effectively give the Ottawa Sports and Entertainment Group a monopoly over stadiums and arenas during the next 30 years.
Cyril Leeder says the clauses unfairly benefit OSEG, which is working with the city on the proposed redevelopment that includes refurbishment of Frank Clair Stadium along with retail and residential development.
Under the proposed agreement, the city couldn’t build a new stadium facility “which competes with the Lansdowne stadium” (is more than 5,000 seats) for 30 years unless it terminated its agreement. (A private party could still build a stadium if the city didn’t participate, council has been told).
Another clause would also give OSEG – which would own the CFL team playing at Lansdowne – the first chance to lease the competing new stadium if it contained football facilities. OSEG, also owners of the OHL team at the Urbandale Centre, would also have the first opportunity to lease the competing stadium if it had hockey facilities.
Leeder told the Citizen in an e-mail that “the city should not grant a stadium or arena exclusive to OSEG.” He called it “unfair and inappropriate” to do so when the city would fund the stadium refurbishment and Senators Sports and Entertainment has “an ongoing proposal for a soccer stadium.”
Ottawa Senators owner Eugene Melnyk previously proposed his own stadium for professional soccer in Kanata, to be built beside Scotiabank Place. Melnyk wanted city support, but Lansdowne was council’s priority.
Leeder, who also sent a separate e-mail to city councillors, added that “the sports and entertainment scene in Ottawa will change dramatically over next five, 10 and 30 years. The city should not handcuff themselves or future councils.”
Kitchissippi Councillor Christine Leadman asked Thursday about the clauses and whether the city was “granting a monopoly on football in the stadiums to the CFL partnership for 30 years.”
City manager Kent Kirkpatrick said that was the case.
OSEG partner Roger Greenberg said there’s a limited number of events that can take place at a stadium and it wouldn’t make sense for the city – OSEG’s partner – to fund a competitor.
“It stands to reason from our perspective that if a new stadium is erected by the city, with the limited number of events that could possibly come to a stadium, it would have a very detrimental effect on the existing stadium, and that would affect both ourselves and the city as partners in the operations of the stadium,” he said.
Greenberg said it’s best to sort out during initial negotiations how to deal with events that may happen down the road, rather than working out the details when they occur.
“We try to provide for, in the agreement, how would they be resolved so that we don’t end up in court over the matter. This was something that came up,” he said.
During the 30 years that OSEG would have a lease on the Lansdowne stadium, “you would not want your own partner to go out and to create a competitive situation somewhere else. I think that’s a very normal commercial term when parties are negotiating with each other,” Greenberg said.