LeBreton Flats residents react to latest twist in development saga

People who live nearLeBreton Flats say a newlawsuit pitting the owner of the Ottawa Senators against his development partneris just the latest disappointment in the slow-moving project.

The $700-million lawsuit, which became public Friday, was filed by Senators owner Eugene Melnyk'scompany Capital Sports Management. Itnames Trinity Development Group Inc., its founder and executive chair John Ruddy, as well as project manager Graham Bird and his company Graham Bird Associates.

The statement of claim alleges Trinity's pursuit of a condo tower development at nearby 900 Albert St. would undermine the financial viability of the LeBretonFlats proposal, which includes a new downtown arena for the hockey club.

David Gork, who lives in a nearby condo, said the lawsuit wasn't necessarily a surprise and it means it will take even longer for the 20-hectare parcel of land to be developed.

"We're left here sitting with open fields, with ground that is somewhat contaminated," he said. "It's going to be like that for another ten years. I do not see [the plans] coming into fruition any time sooner."

"It's sad for us as owners here and it's even worse for the people of Ottawa," he added.

'Slow-moving train wreck'

Dalhousie Community Association head Michael Powell said the communityhas been working with many of the parties whowanted to be involved in the development of LeBretonFlats, and he'snot sure how the project will move forward.

"It seems like this has been a slow-moving train wreck," he said.

LeBreton a 'slow-moving train wreck': community association

6 years ago

Duration 0:26

Michael Powell, head of the Dalhousie Community Association, is frustrated by news of the breakdown in the plan to develop LeBreton Flats. Senators owner Eugene Melnyk is suing his partners.

Powell said he wants to make sure whatever project goes aheadfosters a vibrant community.

"The empty bedrock that isLeBretonFlats [has]to have something that reflects the needs of the community and the needs ofOttawa," Powell said.

Powell said it'sdisappointing the fight seems to be between two big companies overhow to divide "a giant pile of money."

Arena in question

Bruce Firestone, one of the founders of the Ottawa Senators, tweeted that he doesn't understand Melnyk'sdecision to file a lawsuit.

He underscored that the move to a downtown arena is "essential" for both the Senators and the city.

Nicolas Ruszkowski,the Senators chief operating officer, said the lawsuit isn't aboutMelnyk, but the financial viability of the partnership with Trinity Development Group which dependedon profits from residential, commercial and mixed-use development to fund the arena.

"One of the most fundamental misunderstandings here is that this is driven by his own money issues," Ruszkowski said.

"This is driven by a difference of opinion about how to finance the model. And our approach has always been to finance the project through the proceeds of the development."

Ruszkowski said the Senators are pursuing all avenues and remaincommitted to revitalizing the LeBreton Flats area with a new NHL arena.

He would not provide details Friday on what those avenues might include, however,or if other partners were being considered.

As for Trinity Development Group, a statement attributed to executive chairman John Ruddy said the company denies the allegations in the lawsuit and will vigorously defend the claim.

CBC Newsreached out to Bird and the National Capital Commission, which owns LeBreton Flats. No statements were received from eitherby Friday night.