Who Gets What ?

The stadium issue will be debated by City Council next week. Most Ottawans support the notion that the nation's capital should have an outdoor stadium. At the same time, they're concerned about the costs. That's why getting the best deal for the taxpayers should be the first and only consideration in council's collective mind.

City land -- land that's owned by you and me -- is involved in both proposals. Lansdowne Park is wholly-owned by the city, and a good portion of the land adjacent to Scotiabank Place where the Senators Sports and Entertainment group wants to build its stadium/hotel/retail complex is city-owned as well.

Citizen Ellie had the opportunity over the Easter weekend to discuss the stadium/Lansdowne Park redevelopment issue with someone who is a professional quantity surveyor and who spent 40 years assembling land and developing large supermarket/shopping mall complexes, albeit in the United Kingdom.

This discussion got Citizen Ellie to wondering if the city has obtained a proper independent appraisal/evaluation of its landholdings. If it hasn't, and council doesn't have this information, then council will be deliberating from a position of weakness. What is Lansdowne Park really worth as a piece of real estate ? What is the land at Scotiabank Place really worth as a piece of real estate ? What is Lynx Stadium really worth as a piece of real estate ? What is the Bayview Yard really worth as a piece of real estate ? Shouldn't the city expect to get best value when selling off its real estate assets, entering into long-term leases, or swapping land ? There's got to be some benefit to the taxpayers in these arrangements.

Citizen Ellie's expert says they key (regardless of whether the city ends up dealing with the Lansdowne Live group or Senators Sports and Entertainment or some other group not yet in the picture) is for the city to get its fair share of the profit which the developers reap from the project . This could come to the city in either the form of cash or as a share of the rents (approximately

25%) generated by the retail operations.

He notes there are major commercial elements in both proposals which will benefit the developers, but the taxpayers are expected to foot the bill for the goodies -- i.e. the stadium. He also notes that nothing has been put out to tender; that both proposals were unsolicited; and neither developer has openly stated what they expect to get out of it. These guys didn't get rich by not doing their sums. They didn't spend money developing their proposals out of the goodness of their hearts.

He asks this question in regard to the Senators Sports and Entertainment proposal: why doesn't the city insist that the retail is built on its land with Eugene Melnyk building the stadium he wants for professional soccer on his land ? There has to be a reason why just the opposite has been proposed. Could it be that if the stadium is on city land and is owned by the city, the city (i.e. you and me, the taxpayers) would have to eat the losses if professional soccer isn't successful ?

What goes into figuring out what the city should be looking for ? There's a piece of software widely used in the UK -- "Development Valuer" -- which probably has its North American equivalent. It's relatively simple to punch in the numbers -- size of the income-producing letable area, cost of development, rental costs per square foot, potential yield. But there are also reputable appraisers expert at doing this, and while Citizen Ellie has reservations about council's love affair with outside consultants, this is one occasion where paying for an independent appraisal is probably a hugely sensible idea.

There is no need for council to rush to judgement on the stadium issue. Professional soccer isn't panting to come to Ottawa. And as Canadian cities aren't beating down its doors demanding franchises, the CFL would probably give Ottawa a franchise at any time. Cool heads and clear thinking are what's required. Citizen Ellie is all for public/private partnerships -- as long as the public part of the partnership is getting its fair share of the profits generated through the deal.

P.S. Citizen Ellie thinks a dome at Lynx Stadium is a great idea. The indoor driving range at the Bearbrook Road dome is always packed throughout the winter and there's space for indoor soccer as well. Why not enter into a public-private partnership and generate some revenue which, if nothing else, would pay for the upkeep of the facility until such time as a decision is made as to its long-term future. Please .... don't let it go the way of Frank Clair Stadium. Get some bucks out of it.

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