5 experts on government and money ask the mayor of Ottawa to start the process
Five well-known Ottawans with decades of experience in budgeting, law, public management, and municipal affairs wrote a letter to the mayor expressing their concerns about the latest renewal of Lansdowne Park and asking him to be completely honest about how much it will cost.
The major Lansdowne 2.0 revampCalls for a new arena that will cost $183 million and new stadium stands on the north side that are expected to cost $139 million.
The idea is that costs would be mostly covered by building three high-rise apartment towers on top of the existing arena.
The plan was made by the city’s private partner, Ottawa Sports and Entertainment Group (OSEG), and was approved by the council a year ago when Jim Watson was mayor.
It has been criticized for being secretive and making too optimistic financial projections, among other things.
In a letter they sent to Mayor Mark Sutcliffe on June 25, the authors asked him to answer 18 questions about the project’s finances, the effects of adding to the city’s debt, and due diligence.
The following people signed the letter from June 25:
- Kevin Page is the president and chief executive officer of the Institute of Fiscal Studies and Democracy at the University of Ottawa. He used to be the parliamentary budget officer.
- Penny Collenette is a lawyer and business leader in residence at the Teffer School of Management at that university.
- Michael Wernick used to be the clerk of the Privy Council and is now the Jarislowsky Chair in Public Management at that university.
- Paul Champ is an employment, labour, and human rights lawyer in Ottawa.
- Joanne Chianello used to write a column about city affairs for CBC Ottawa. She is now a manager at StrategyCorp.
Even though the letter acknowledges that Lansdowne 2.0 could help the Ottawa Redblacks CFL team and the Ottawa 67’s OHL team become more stable, as well as create housing, jobs, and support tourism, it asks if enough information has been shared to compare the project to other possible places to invest.
Wernick told CBC that the city should stop using “commercial confidentiality” as an excuse for not giving out all of the financial information.
Wernick said, “I’ve lived in Ottawa for 41 years, and there are a lot of things about the project that worry me.” “I don’t think taxpayers or even councillors have enough information about this huge project to make a good choice.”
Wernick and his group tell the mayor in their letter that “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 rol
Wernick also questioned the role of city staff in presenting the proposal to councillors. He even asked if they had become “advocates for the project.”
He said, “They don’t seem to be doing their best for the taxpayers.”
The letter asks the mayor about the project’s new costs, how much debt it would create, how that would affect the city’s ability to borrow, and how paying off that debt would affect the city’s bottom line.
The authors also want the mayor to give them the information they need to properly assess the risk for the city. This includes a detailed breakdown of cash flow projections and the money the city would get from letting OSEG build and sell condos on a city asset.
The letter also asks the mayor to explain how the city will consult the public in a “robust” way and to make sure the city’s auditor general has time to answer their questions before the council votes on Lansdowne 2.0.
Sutcliffe’s office confirmed that the mayor got the letter, but said he hadn’t had a chance to read it properly yet.
Council member wants changes to be made right awa
The area’s councillor, Shawn Menard, led a public walk on the grounds of Lansdowne Park on Monday, where he called for big changes to the current plan for renewal, especially in the areas of housing, green space, and public consultations.
He said that the first idea “cannot stand.”
Menard talked about the effects of the three 29-story, 34-story, and 40-story high-rises that would be built behind the north-side stands of TD Place stadium and hold 1,200 apartments.
The councillor wants to make sure that these buildings have affordable housing, is worried about the wind effect at street level, and doesn’t want to lose too much green space. The current plan would take away about 0.5 hectares of grass from a city park.
Menard also said that he was worried about OSEG’s lack of transparency and commercial secrecy.
OSEG VP joins Menard’s wal
Janice Barresi, vice-president of brand and social impact at OSEG, walked with the council member before talking to reporters and giving the group’s point of view.
Barresi said, “These city buildings need to be fixed as soon as possible.” “The renewal of these sites is crucial to the partnership’s ability to make money and stay in business in the long run.”
Concerning Menard’s worries about the size and style of the proposed residential towers, 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.”
The city staff is likely to ask the council for permission for Lansdowne 2.0 sometime this fall.