News Article: Lebreton talks in mediation to salvage deal

[JD1]

RendezVous LeBreton in mediation to try to salvage project

Click to read more...

 

[Take a Bath Son]

This is just not normal.

How could these parties only realize the importance at this stage?!

Anyways, I hope for a successful outcome but ultimately one variable needs to be removed from the equation imho

 

[Spartachat]

I bet Melnyk will be suing the mediator soon.

 

[harrisb]

If they work out a deal and NCC allows them to proceed there will be yet another lawsuit, this time from Devcore. They will argue a couple of points:
a) The NCC announced the official breaking off of the deal to take effect in 30 days
b) No formal process invoked to re-bid

and possibly...
c) They were the only qualified bidder in the first place as Rendezvous should have been disqualified based on not having the financial means to develop.

The third one could get dicey but all this means is that Lebreton isn't getting started anytime soon.

 

[IlTerrifico]

It will probably go something like this:

Ruddy: ScrooEuge, you're a dishonest snake and a thief, and only a fool would trust you in a business deal going forward.

ScrooEuge: Thanks for the compliments. So are you ready to give me as free arena and apologize yet?

Ruddy walks out.

 

[foggyvisor]

Like I said in the other thread, the NCC terminating the deal was just a technicality that solidifies the January deadline as something real.

 

[bert]

Any deal with Melnyk still involved is a bad one. Hope it falls apart, im in this for the long haul. I have no interest in this team with him as an owner.

 

[Sens of Anarchy]

Its a step in the process to avoid court time.

 

[Joeyjoejoe]

Wouldn't be surprised if all that comes out of this is Melnyk suing the new Sens dog for digging and hiding his food in the CTC parking lot.

 

[hawthy]

Any deal with Melnyk still involved is a bad one. Hope it falls apart, im in this for the long haul. I have no interest in this team with him as an owner.

Yep. There are two immediate issues with the franchise: ownership and arena location....in that order.

 

[Masked]

Yep. There are two immediate issues with the franchise: ownership and arena location....in that order.

Arena location is not a significant issue. There's an opportunity for potentially a better location but it isn't a franchise killer like the current ownership is.

 

[hawthy]

Arena location is not a significant issue. There's an opportunity for potentially a better location but it isn't a franchise killer like the current ownership is.

Meet you half way: it’s not a significant issue, but the team absolutely needs to be downtown for better long term viability. It does pale in comparison to the ownership change that is required.

 

[Silencio]

Ottawa Senators, partners in mediation to save downtown arena deal

According to this article, it was Ruddy's team who reached out to suggest the mediation process.

 

[JD1]

Ottawa Senators, partners in mediation to save downtown arena deal

According to this article, it was Ruddy's team who reached out to suggest the mediation process.

Why would the Ruddy/Bird team do that?

 

[Silencio]

Why would the Ruddy/Bird team do that?

I'm guessing they realized during the lawsuit defense preparations that Melnyk's claim had more merit than most people (including myself) thought.

 

[pzeeman]

Why would the Ruddy/Bird team do that?

Potential money to be made.

I’m already shocked that the partners let it get this far without getting control of Melnyk. But this is absolutely an attempt to salvage the project and not lose all the cash that’s going to be made on that land.

 

[Ice-Tray]

Good news is good news.

 

[coladin]

The Art of The Deal...sort of hahs

In the grand scheme of things, very predictable scenario playing out. They are both looking for the best deal and will drag it out in front of everyone to do it. At the end of the day, the bottom line is all that matters.

Both do not want to walk away from Lebreton.

 

[slamigo]

I'm guessing they realized during the lawsuit defense preparations that Melnyk's claim had more merit than most people (including myself) thought.

I'm thinking that they just realized that another developer is going to wrangle control of the project and the two lawsuits are going to cost everyone a LOT of money. They should be able to find a way to make EM happy and still make lots of money. Much more money than watching a different entity develop that land. And hopefully EM sells in a few years and isn't even an actor in the near future.

 

[Tnuoc Alucard]

The Art of The Deal...sort of hahs
In the grand scheme of things, very predictable scenario playing out. They are both looking for the best deal and will drag it out in front of everyone to do it. At the end of the day, the bottom line is all that matters.
Both do not want to walk away from Lebreton.

Yeah, that's pretty much it.

EM does not want to take on any risk, and I suspect, in a negotiation tactic made the following offer last month

In a written statement, CSMI proposed to assign its interest to Trinity for the residential, retail, commercial and recreational elements of the LeBreton Flats plan. Trinity would collect all the revenue.

In exchange, Trinity would finance the $500-million arena, instead of CSMI. Any profits from the massive redevelopment of LeBreton Flats would be Trinity’s alone under the CSMI pitch.
CSMI proposes to pay for the operating and life-cycle costs of the arena during the lease term.
Ottawa Citizen December 18, 2018


And hearing that there is Mediation going on, between the RLG partners meaning that both sides see there's money to be made, and don't want to pass up on it.

This is good news for Ottawa Senator fans .......... not so much for those who are hoping for an ownership change ....... but you never know, Ruddy might want a piece of the Franchise, in return for funding the construction of the Arena.

 

[Tundraman]

Obviously the NCC and the City want the project to succeed that's why the NCC made the extension. There may have been other legal reasons why they did it but either way if the partners are talking then there is a bit of hope they can still salvage this. Until we hear differently for what it's worth I take it as some good news.

 

[harrisb]

Yeah, that's pretty much it.

EM does not want to take on any risk, and I suspect, in a negotiation tactic made the following offer last month

In a written statement, CSMI proposed to assign its interest to Trinity for the residential, retail, commercial and recreational elements of the LeBreton Flats plan. Trinity would collect all the revenue.

In exchange, Trinity would finance the $500-million arena, instead of CSMI. Any profits from the massive redevelopment of LeBreton Flats would be Trinity’s alone under the CSMI pitch.
CSMI proposes to pay for the operating and life-cycle costs of the arena during the lease term.
Ottawa Citizen December 18, 2018


And hearing that there is Mediation going on, between the RLG partners meaning that both sides see there's money to be made, and don't want to pass up on it.

This is good news for Ottawa Senator fans .......... not so much for those who are hoping for an ownership change ....... but you never know, Ruddy might want a piece of the Franchise, in return for funding the construction of the Arena.

You left out the $1 lease part....wonder why?

This is absolutely horrible news for the Sens and city of Ottawa. This would allow Eugene to continue for a couple more years and increase the value of his franchise which right now is at an all time low. The Devcore plan with or without the team was superior in almost every way, it was a place that would draw tourists, arts and somewhere people want to go. RendezVous is building condos and a rink, it's disgusting really

 

[slamigo]

... but you never know, Ruddy might want a piece of the Franchise, in return for funding the construction of the Arena.

Melnyk taking on a partner might not be the worst idea. Would solidify a few things in the short term and spread the risk.

 

[AchtzehnBaby]

Maybe both parties also figured out that the cost of the litigation would be more than 15% of the cost of the project.

 

[OgieO]

Like I said in the other thread, the NCC terminating the deal was just a technicality that solidifies the January deadline as something real.

This. I do believe it was "notice to terminate". Technically meaning "we will terminate the deal in 30 days..." Presumably there was an "unless" clause in the wording. There usually is, and 99% of the time the person receiving the notice to terminate does not meet the "unless" but these stakes are wholly different that anything I've dealt with professionally.