News Article: Devcore is willing

[JD1]

I agree. That's would be a bit weird...but really at the end of the day it all comes down to a $ amount. Let's say that the risk is 150 mil. I have no idea if that is even near the amount but it's the best I can estimate for covering interest on 500 mil for 10-15 years.

Somebody has to pay this amount. Maybe it ends up being 100 mil, maybe with 900 Albret it's 200 mil. Whatever it is, if Melnyk is to be believed then the difference is the amount that sunk Melnyk's financing.

But regardless of the difference, it's still 100 mil, or some other very big amount.

Melnyk wants Ruddy to pay this and take the risk it could be higher.

Ruddy wants Melnyk to pay this and take the risk it could be higher.

It's a a game of chicken, and maybe they announce an agreed upon split tomorrow, but more likely they either have 1) decided they can't work with each other regardless, or 2) one side doesn't not have enough money even at a reasonable compromise. Or both.

I don't think either one really cares who gets to sell the land 30 years from now because they will both be dead. So all that really matter is who is going to pay for the financing because all other costs will be covered by the operator once it's built, which will be the sens.


Sidebar - Honestly, outside of 1-2 articles the coverage of this story has been pretty pitiful. We're 2 years into this thing, with billion dollar lawsuits back and forth, and nobody can figure out/summarize what the full mechanics of the deal actually are.

I still don't understand the statement about not owning the rink ANYWAY.

had it proceeded as planned who was actually going to own the rink?

 

[NorthCoast]

I still don't understand the statement about not owning the rink ANYWAY.

had it proceeded as planned who was actually going to own the rink?

Yeah...don't know.

But I still think my point stands that it may not matter, because what does owning a rink that will only last for 30 years, when you have a 30 year tenant signed up, and that tenant will cover all the costs...it essentially just means that you own a piece of land that can't be sold for 30 years, does it not?

 

[coladin]

I still don't understand the statement about not owning the rink ANYWAY.

had it proceeded as planned who was actually going to own the rink?

Maybe Ruddy was financing the arena anyways, but as profits roll in Melnyk would pay him on a separate arrangement is what I can come up with? Ruddy fronting the cash.

 

[JD1]

Yeah...don't know.

But I still think my point stands that it may not matter, because what does owning a rink that will only last for 30 years, when you have a 30 year tenant signed up, and that tenant will cover all the costs...it essentially just means that you own a piece of land that can't be sold for 30 years, does it not?

why would a rink only last 30 years? the current rink was built in the mid 90s and is still a modern arena design with plenty of opportunity to maximize in arena revenue. that's as opposed to the saddledome which is not designed that way.

the existing rink is structurally sound. There's no reason it cannot last another 100 years if maintained properly. It's a concrete and steel structure. if folks don't think it can last then there should be a lot of people in this town nervous everyday as they go to work in govt office towers built in the 60s

 

[coladin]

I never saw Jim Pattison as being part of DCDLS/Devcore until this morning. Anyone else knew this before today?

 

[NorthCoast]

why would a rink only last 30 years? the current rink was built in the mid 90s and is still a modern arena design with plenty of opportunity to maximize in arena revenue. that's as opposed to the saddledome which is not designed that way.

the existing rink is structurally sound. There's no reason it cannot last another 100 years if maintained properly. It's a concrete and steel structure. if folks don't think it can last then there should be a lot of people in this town nervous everyday as they go to work in govt office towers built in the 60s

I totally agree.

Maybe 30 is off and it's closer to 40. Regardless, I don't think it's because it will fall down.

I think that after 30-40 years the following factors simply combine and a new arena gets built.

- Capital costs on the old arena start adding up
- New revenue or location opportunities from new arena look very appealing
- Team gets local government to build them a new arena so that they can swap capital costs for new revenues.

Yeah, team could stay and be profitable in CTC (maybe not with Melnyk because IMO he is incompetent as a businessman) but structurally you could make it work for another 10-20 years.

But hey, if the city wants to offer a developer enough of a sweetheart deal on land that he is willing to pay for 2/3 of your new arena...

BTW: those govt workers are already depressed. Let's not scare them.

 

[NorthCoast]

I never saw Jim Pattison as being part of DCDLS/Devcore until this morning. Anyone else knew this before today?

No. Me likey

From Jim Pattison wiki:

"On April 16, 2009 Jim Pattison announced that Save-On Foods had donated $100,000 to CBC Television in order to rent high-definition television trucks for away games during the Vancouver Canucks' 2009 1st round NHL playoff series versus the St. Louis Blues. Prior to this donation, CBC stated that it would not broadcast high-definition away games in St. Louis due to the cost of renting high-definition equipment during the current tough economic times and major cuts to funding for the CBC by the federal government.[17]"

Sounds like a hockey fan to me. Worth 5 bil. Canadian born.

 

[NorthCoast]

Link to today's article if anyone is interested:

NCC flattens LeBreton deal — Ottawa Senators-backed bid booted as runner-up waits in wings

And yes, I totally agree with Devcore's position. New bid process is pure posturing. Who is going to invest millions into a new bid process when all parties involved would prefer just going forward with the team and a developer...which is still a possibility. Either with Melnyk or without.

Once again. Lebreton will be stalemated until the ownership issues play out and either 1) the team is sold to someone that can finance lebreton, or 2) Melnyk finds a partner that can help him finance lebreton, or 3) the team is moved elsewhere. And the NHL will make sure that all possible options for #1 or #2 happen before #3.

Someone will just have to tell the NCC to find a way to drag their feet bit. Hope they have it in them

 

[coladin]

No. Me likey

From Jim Pattison wiki:

"On April 16, 2009 Jim Pattison announced that Save-On Foods had donated $100,000 to CBC Television in order to rent high-definition television trucks for away games during the Vancouver Canucks' 2009 1st round NHL playoff series versus the St. Louis Blues. Prior to this donation, CBC stated that it would not broadcast high-definition away games in St. Louis due to the cost of renting high-definition equipment during the current tough economic times and major cuts to funding for the CBC by the federal government.[17]"

Sounds like a hockey fan to me. Worth 5 bil. Canadian born.

I watched hi Canada Walk of Fame induction a few weeks back, and made my kids watch his advice at the end. A brilliant, brilliant man. Reminds me of my late father.

 

[thinkwild]

The Devcore bid was rejected, so i would assume they wouldnt want to just go to the rejected bid, rather they'd want a new bid process to get what they are after?

I still don't understand the statement about not owning the rink ANYWAY.

had it proceeded as planned who was actually going to own the rink?

It is a weird quote. Could it be that the land is still owned by NCC and just leased to the team?

 

[Erik Alfredsson]

Melnyk needs to sell asap.

 

[Pancakes Pancakes]

So there are three billionaires, with combined wealth of about $11B, backing the Devcore bid to develop Lebreton and who could potentially be interested in purchasing the Sens and the NCC and City is dicking them around at this point? They should be begging them to remain in the fold and begin working with them asap.

 

[Engineer]

So there are three billionaires, with combined wealth of about $11B, backing the Devcore bid to develop Lebreton and who could potentially be interested in purchasing the Sens and the NCC and City is dicking them around at this point? They should be begging them to remain in the fold and begin working with them asap.

They're protecting themselves.

 

[Silex]

Link to today's article if anyone is interested:

NCC flattens LeBreton deal — Ottawa Senators-backed bid booted as runner-up waits in wings

And yes, I totally agree with Devcore's position. New bid process is pure posturing. Who is going to invest millions into a new bid process when all parties involved would prefer just going forward with the team and a developer...which is still a possibility. Either with Melnyk or without.

Once again. Lebreton will be stalemated until the ownership issues play out and either 1) the team is sold to someone that can finance lebreton, or 2) Melnyk finds a partner that can help him finance lebreton, or 3) the team is moved elsewhere. And the NHL will make sure that all possible options for #1 or #2 happen before #3.

Someone will just have to tell the NCC to find a way to drag their feet bit. Hope they have it in them

It's not hat clear cut. If you read Jim Watson's statement in that article, he lays it out that the NCC need to be sure that they can just proceed with the Devcore bid without incurring a lawsuit from either Melnyk and/or Ruddy.

 

[mysens]

So why was he traded then? Dorion states that EK never responded to their contract proposal. Not even a counter.

EK was not getting any of the front loaded contracts everyone seems to be getting. There was no bonus up front what so ever. Simply a lucrative deal of 11million per for 8 years and again no money up front. Funny enough, when it was the older NHL or previous CBA, this contract was just perfect as it was fair market value. So, EK was not happy about the structure. He never ever thought he would get traded. It really did shock him and his family.[/QUOTE]

 

[JungleBeat]

 

[coladin]

This city is a joke. The NCC doesn't even know its own laws. In fairness, how do they not go back to Devcore. They spent millions on this project , only to have to start again?

Should be like the Miss Universe pageant "should the winner not be able to fulfill their duties, the runner up blah blah blah"

 

[Gil Gunderson]

Hehehe

 

[Tuna99]

If you see Jean Chrétien at a Sens game it means Desmarais is the future owner (Chrétien daughter is married to Andre Desmarais)

 

[Bileur]

If you see Jean Chrétien at a Sens game it means Desmarais is the future owner (Chrétien daughter is married to Andre Desmarais)

Better signs than that have already happened.

 

[Take a Bath Son]

This city is a joke. The NCC doesn't even know its own laws. In fairness, how do they not go back to Devcore. They spent millions on this project , only to have to start again?

Should be like the Miss Universe pageant "should the winner not be able to fulfill their duties, the runner up blah blah blah"

I agree and Jim Watson needs to be careful about his comments. He and the NCC need to respect the process or Devcore will be calling lawyers too. Jim is very good at pushing an agenda and maneuvering the system. He’s an astute politician and I respect him. But the line between that and fair process can be get blurred. My guess is he knows a plan b that doesn’t involve devcore and as such is advocating a new rfp.

It’s clear that the public likes the devcore bid as much or almost as much-maybe more. Their statement today shows how willing they are to negotiate a proposal in everyone’s best interest. The idea of a restart makes me shudder.

Definitely a big mess with lots of parties involved.

 

[Do Make Say Think]

This city is a joke. The NCC doesn't even know its own laws. In fairness, how do they not go back to Devcore. They spent millions on this project , only to have to start again?

Should be like the Miss Universe pageant "should the winner not be able to fulfill their duties, the runner up blah blah blah"

Where is the RFP? I'd like to read Section 13(2) before agreeing with the claim that the NCC doesn't know it's stuff.

EDIT: keywords in Section 13 is "at its sole discretion". I don't think Devcore has a leg to stand on.

 

[Sens of Anarchy]

Don't know if this has been posted

 

[Do Make Say Think]

Don't know if this has been posted

13.0 NEGOTIATIONS AND SELECTION OF A PREFERRED PROPONENT
Pursuant to the completion of the rated requirement
evaluation, the NCC will be in a position to engage with
the business terms and conditions to be contained in the
development agreement(s) contemplated in this process. Based
on the submission scores, the NCC may at its sole discretion:
1. Identify the highest ranked proponent as the preferred
proponent and negotiate the development agreement(s)
with such proponent.
2. Identify the two highest ranked proponents and enter into
negotiations with the higher ranked proponent and failing
successful negotiations enter into negotiations with the
second highest ranked proponent.
3. Enter into separate and distinct but contemporaneous
negotiations with the first and second ranked submissions
and identify a preferred proponent following the
conclusion of those negotiations.
The NCC may use the negotiation process to finalize any aspect
of a proponent’s submission.

Devcore is wrong.

 

[Sens of Anarchy]

13.0 NEGOTIATIONS AND SELECTION OF A PREFERRED PROPONENT
Pursuant to the completion of the rated requirement
evaluation, the NCC will be in a position to engage with
the business terms and conditions to be contained in the
development agreement(s) contemplated in this process. Based
on the submission scores, the NCC may at its sole discretion:
1. Identify the highest ranked proponent as the preferred
proponent and negotiate the development agreement(s)
with such proponent.
2. Identify the two highest ranked proponents and enter into
negotiations with the higher ranked proponent and failing
successful negotiations enter into negotiations with the
second highest ranked proponent.
3. Enter into separate and distinct but contemporaneous
negotiations with the first and second ranked submissions
and identify a preferred proponent following the
conclusion of those negotiations.
The NCC may use the negotiation process to finalize any aspect
of a proponent’s submission.

Devcore is wrong.

So I take it #2 didn't happen?