Lansdowne 2.0

Background

Lansdowne is a place of history and civic pride. For over 175 years, it has been a gathering place for neighbours, residents of Eastern Ontario and Western Québec, and for tourists from across Canada and around the world. It is a place of connection and celebration for sports, cultural and community events.

In 2012, City Council entered into a 30-year partnership (now a 40-year partnership) with the Ottawa Sports and Entertainment Group (OSEG) for the renewal and revitalization of Lansdowne with a new South Stadium Stands, new mixed-use retail and reimagined public realm spaces and subterranean parking.

In December 2020, City Council directed a working group made up of City and OSEG representatives to consider options to enhance the sustainability and long-term financial viability of Lansdowne’s operations and the Partnership.

In July 2021, Council agreed to move forward with the recommended Framework as described in the staff report.

Staff were asked to bring forward detailed plans and cost estimates for the revitalization of Lansdowne Park including a funding strategy for the City’s portion; an assessment of revenue neutrality and assessment of the financial implications for the City for the term of the Partnership agreement

Since July 2021, City Staff and OSEG have done due diligence to review the formal business case, reviewed financial projections and proformas, assessed feasibility of affordable housing, undertake geotechnical work and hydrogeological investigations, and develop a class D estimate for the project.

Proposal

The proposal celebrates and honours the storied history of Lansdowne as a bedrock of Ottawa’s civic, cultural and sports identify while presenting a generational opportunity to renew and transform these city assets.

Using the Lansdowne Guiding Principles as the framework, the proposal also builds on the collaboration and vision that has guided development at Lansdowne to date. These Guiding Principles, developed in 2010 by the City, National Capital Commission (NCC), Parks Canada and OSEG in consultation with the public, envision a site that reflects the history, unique location and role of Lansdowne as a year-round gathering place for our Capital City. Lansdowne 2.0 is consistent with these Guiding Principles and represents an important next step in achieving the vision for this site.

The proposal is to demolish the existing North Stadium Stands and arena complex, and build a new, world-class Event Centre and North Stadium Stands. This new public infrastructure will make the venues accessible, sustainable, and better position Lansdowne as an iconic, landmark site. New retail podium and additional residential units are also included within the proposal. In line with the City’s Official Plan, the residential component will bring additional density to Lansdowne, while providing a significant part of the funding envelope for Lansdowne 2.0.

Below are the highlights from the proposal:

Concept Plan

• Council was asked to “approve in principle” the proposed concept plan. This means that the concept plan may be subject to change as we go through the consultation process.
• OSEG has provided a proposal and concept plan to create a new state-of-the-art Event Centre with 5,500 seats that will support an expansion of local events, concerts, and markets.
• Reconstruction of the North Side Stands to replace the aging infrastructure and rebuild it to the latest accessibility standards.

Overarching Financial Key Messages

• The project is affordable and self-financing. There is no additional cost to Ottawa taxpayers.
• It is revenue neutral, meaning there are sufficient additional revenue sources to fund the total cost of this project including the financing costs.

Rationale for Air Rights proposal

• By following the same process as was done during the initial redevelopment, with oversight by a Fairness Commissioner, staff believe the sale or lease of these air rights creates significant added value by generating revenue to offset the project costs and helps to make the overall business case affordable to the City.
• The City commissioned an external appraisal firm to assess the land sale prices on a per square foot of anticipated development density. CREO’s internal appraisers reviewed the findings and reconciled the data in relation to the OSEG proposal. Based on the preliminary plans showing an anticipated development density of 850,000 square feet the estimate of market value attributable to the residential development air rights is $43.5 million.

Public Realm

• City Staff are recommending the approval of a detailed investment plan for the urban park and public realm. It will ensure that the City can deliver on much of the feedback received from residents, working groups and staff (better sledding area, an area for small concerts, opportunity for better furnishings and design improvements for comfort and safety).
• City staff are recommending a strategic investment for the urban park and public realm that will aim to create a more welcoming outdoor venue with the understood target being 5 million visitors to the site annually.

Heritage

• The plan looks at upgrades to the Horticulture Building and Aberdeen pavilion and seeks to retain experts to introduce better climate control methods while maintaining heritage considerations.
• These upgrades will support wider programming opportunities across the site throughout the year

Affordable Housing

• The City is recommending that the new residential component will have a minimum of 10% affordable housing estimated at 120 units.
• The disposal of the air rights will be conditioned to ensure that the affordable housing units remain affordable in perpetuity under the ownership and administration of a nonprofit housing provider.

Public Consultation

• This report, which was approved, was asking Council to approve the business case, and to allow Staff to continue negotiations with OSEG to advance the design, cost estimates, consultation, and engagement as per the Council approved direction in July 2021.
• With this report now approved by Council, Staff will begin the city-initiated rezoning included in the concept.

Property Tax Uplift

• Additional property taxes for the estimated 1200 residential units and 59,000 sq/ft of retail space will be used.
• 90% of this additional property tax will be dedicated to debt servicing, the remaining 10%, and all future tax increases after the stabilization date (2027-2029), will be used to fund city services.

Waterfall

• In the current agreement, OSEG is paid back first, but in the proposed Lansdowne 2.0 we reprioritized the waterfall so the City does not have to wait until OSEG is repaid its equity.
• In the Lansdowne 2.0 the City’s assets will be newer and require less lifecycle spending and the City is receiving more distributions because we start sharing in the profits right away.

Transportation

• With the possibility of residential growth and more events to occur at Lansdowne Park, access to and from the site by all transportation modes has been considered at a high level. Specific direction from Council as part of the 2021 report asked that any changes made to Lansdowne must take into consideration all users of the site, with a focus on making pedestrians and cyclists feel safer.
• Staff are proposing a medium to long-term plan for initiatives that will enhance connectivity for pedestrians and cyclists and improve on-site safety for all users and reduce conflict between transportation modes. Twenty-four suggested connectivity improvements, along with a key map, are listed in Document 3 (Lansdowne Park – Proposed Active Transportation Upgrades).

Accessibility

• It is expected that an accessibility lens be applied to all design elements of new proposed features as part of the Lansdowne Park proposal to ensure that requirements of the City of Ottawa Accessibility Design Standards (ADS) are met, which will include ensuring appropriate design team expertise, consultations with the community and consultation with the Accessibility Advisory Committee (AAC).

If you have any questions about this project please contact us at lansdownerenewal@ottawa.ca.