A Carleton University economic professor who is a strong opponent of the Lansdowne Live plan is taking his fight online with a video on YouTube.
"What are the problems here? It all started out because a competitive process was killed, was pushed aside and replaced by a sole-source, which in terms of every citizen, every voter, drove the cost through the roof," said Ian Lee, whose YouTube video is posted on Coun. Clive Doucet's website.
Lee, who is a resident of the Glebe, is also the director of the MBA program at Carleton University's Sprott School of Business and is considered one of the most respected economic analysts in Canada.
Debt load will balloon
Lee has long been outspoken about the Lansdowne Live plan. He insists the public-private partnership between the City of Ottawa and the Ottawa Sports and Entertainment Group (OSEG) will unnecessarily cost taxpayers millions, especially when the city already has other costly projects on the table, such as upgrading the city's sewer system and moving ahead with a new transit plan.
"We have all of these things happening that are going to drive the city's debt from $500 million to almost $2 billion. Now, anybody who thinks that you can make the debt go up 400 per cent and it doesn't change your monthly payment is dreaming in techni-colour," Lee said in the video.
He also insists the project should be open to competition, noting it would help drive down prices.
The deal
Part of the Lansdowne Live deal would see the city lease the land at Lansdowne Park to OSEG rent-free for 30 years.
"If you or I go and buy a house or rent an apartment, we've got to pay for it. Nobody gives it to us for free," Lee said.
The city would also provide money to build the stadium and refurbish the arena, signing a contract with OSEG to assume the redevelopment and construction aspects of the site.
However, the deal would also see OSEG undertake the responsibility and risk of redeveloping the stadium and the arena. The business group would also fund all the operating costs of the facilities.
City facility
One of the businessmen behind the deal appeared before council last fall to discuss some of the financial details of the project. Roger Greenberg said despite his group's involvement, the area would still belong to the city.
"This is a city facility -- that we are going to maintain it; that we are going to have a reserve fund; that we are responsible for the reserve fund; that we are responsible for the operating costs. This isn't our building and the city is sharing in the revenues from the retail development that it's not putting any money into," Greenberg told council in November 2009.
Money from retail
OSEG would contribute the capital to build the retail component of the site, as well as parking to accommodate the stores and restaurants.
The plan would allow the city to collect tax levies from the retail components, and both parties would share revenues from the stadium, retail and parking at the site, according to the Lansdowne Partnership Plan.
The project is also expected to create jobs, stimulate the economy and beautify the area.
City council is expected to make a final vote on the plan in June.