Experts pen letter of concern about Lansdowne 2.0
Giacomo Panico | CBC News | Posted: June 27, 2023 8:00 AM | Last Updated: June 27, 2023
5 experts in governance and finances ask Ottawa mayor to open up process
Five prominent Ottawans with decades of experience in budgeting, law, public management and municipal affairs have co-signed a letter to the mayor expressing concerns about the latest renewal of Lansdowne Park, calling on him to be fully transparent about its cost.
The major Lansdowne 2.0 revamp calls for a new $183-million arena and new north-side stadium stands that are estimated to cost $139 million.
The idea is costs would be offset largely by the development of three high-rise residential towers above the existing arena.
The proposal was crafted by the city's private partner, Ottawa Sports and Entertainment Group (OSEG), and was endorsed one year ago by the last council under former mayor Jim Watson.
It has been the subject of criticism with accusations of secrecy and overly optimistic financial projections.
In their letter dated June 25, the authors ask mayor Mark Sutcliffe to answer 18 questions on topics including the project's finances, the impact of adding to the city's debt and due diligence.
The letter dated June 25 was signed by:
- Kevin Page: former parliamentary budget officer and current president and CEO of the Institute of Fiscal Studies and Democracy at the University of Ottawa.
- Penny Collenette: lawyer, board director, and former executive in residence at the University of Ottawa's Telfer School of Management.
- Michael Wernick: former clerk of the Privy Council and currently that university's Jarislowsky Chair in Public Management.
- Paul Champ: Ottawa lawyer with a focus on employment, labour and human rights.
- Joanne Chianello: former CBC Ottawa city affairs columnist, now a manager at StrategyCorp.
While acknowledging that Lansdowne 2.0 offers a chance to put both the Ottawa Redblacks CFL team and the Ottawa 67's OHL team on more solid footing, as well as create housing and jobs and support tourism, the letter questions whether enough information has been disclosed to compare the project against other potential areas of investment.
Wernick told CBC the city should reconsider commercial confidentiality, which it has used as justification for not releasing all of the financial details.
"I've been a resident of Ottawa for 41 years and there are a lot of aspects of the project that concern me," said Wernick. "I don't think there's enough information for taxpayers, even councillors, to make a sound decision on this enormous project."
In their letter, Wernick and company tell the mayor "disclosure exemptions cannot be used when the public interest in disclosing the information is greater than the reason for the exemption."
Concerns with staff's role
Wernick also questioned the role of city staff in presenting the proposal to councillors, even wondering whether they've become "advocates for the project."
"They don't seem to be exercising due diligence for the taxpayers," he said.
The letter asks the mayor for the revised costs of the project, the amount of debt the project would create, what that would mean for the city's ability to borrow and how servicing that debt would affect the city's bottom line.
The authors also want the mayor to release information needed to properly assess the risk for the city, including a detailed breakdown of cash flow projections and the revenue the city would receive for allowing OSEG to build and sell condos over a city asset.
The letter also wants the mayor to outline how the city will consult the public in a "robust" way and to ensure the city's auditor general has the time to answer their questions before council votes on Lansdowne 2.0.
A spokesperson with Sutcliffe's office confirmed the mayor received the letter but had not had the chance to properly review it.
Councillor calls for immediate changes
On Monday, Shawn Menard, the councillor for the area, led a public walk on the grounds of Lansdowne Park where he demanded big changes to the existing renewal plan, specifically in the areas of housing, greenspace and public consultations.
He said the original proposal "cannot stand."
Menard highlighted the impact of the three highrises of 29, 34, and 40 storeys, which would be built behind the north-side stands of TD Place stadium and contain 1,200 residential units.
The councillor wants to ensure there is affordable housing within those buildings, is worried about the wind effect at street level and doesn't want to lose too much greenspace — the current plan has about 0.5 hectares of grass lost on a city park.
Menard also expressed concern about transparency and the commercial confidentiality with OSEG.
OSEG VP joins Menard's walk
Janice Barresi, OSEG's vice-president of brand and social impact, joined the councillor's walk before speaking to reporters and offering her group's perspective.
"These city facilities are in dire need of repair," said Barresi. "The renewal of these sites is critical to the profitability and financial long-term sustainability of the partnership."
As for Menard's concerns about the size and type of residential towers being proposed, she added: "If the city decides that they want less density on-site or more affordable housing, we'll work with our partners on that."
City staff are expected to ask councillors for the green light for Lansdowne 2.0 sometime this fall.
Corrections:- A previous version of this story stated that Penny Collenette is an executive in residence at the University of Ottawa's Telfer School of Management. In fact, that was a former role. June 27, 2023 2:21 PM