NCC expects to sign lease this fall for NHL arena at LeBreton Flats

The head of the National Capital Commission says he's optimistic it will finalize a long-term lease with the Ottawa Senators for an arena at LeBreton Flats this fall, even with the franchise up for sale.

NCC CEO Tobi Nussbaum says talks continue with the Senators senior management on a long-term lease agreement to build an arena on the land west of downtown Ottawa.

"We're in a period now of due diligence and further discussions on the basis of the MOU that was signed in June last year," Nussbaum said.

"We're feeling very optimistic, and the intention is still to have a formal lease signed in the fall of 2023."

Nussbaum says the NCC has had no discussions with NHL Commissioner Gary Bettman or prospective owners on a new downtown arena.

"Clearly, we are very excited to meet the new owners, whoever they may be," Nussbaum said.

"In the meantime, I do need to stress that the conversations and the process continues with the senior management team of the Ottawa Senators."

The NCC's Board of Directors received an update on talks with Capital Sports Development Inc. on Thursday as part of a presentation on Building LeBreton Flats.

"They are continuing their due diligence work to understand the site conditions and also advancing design work by undertaking a fit test and massing analysis for its proposal," NCC Chief of Planning and Engagement Laura Mueller said.

"Identification of programmatic needs for the development and the facility is also underway."

Last June, the NCC announced it reached a memorandum of understanding with a consortium led by the Senators to build an arena surrounded by mixed-use development on the six-acre parcel of land west of downtown Ottawa.

A rendering of what a new Ottawa Senators arena at LeBreton Flats could look like. (Capital Sports Development Inc.)

In November, the Senators announced the club and Canadian Tire Centre was up for sale, sparking interest from several groups and individuals, including Canadian actor Ryan Reynolds.

Mueller insists the sale process has not disrupted talks between the NCC and Capital Sports Development on a new arena.

"While this process is underway, I can assure you that we remain optimistic that our discussions will lead to a long-term lease agreement by fall of 2023, this fall," Mueller said Thursday afternoon.

"And, of course, we'll continue to provide updates on the project to the board and the public in the coming months."

Postmedia reported that New York-based banker Galatioto Sports Partners are expected to open the due-diligence website this week to allow prospective buyers to look at the team's finances. Bettman said in December that more than a dozen potential bidders signed a non-disclosure agreement to view the Senators' finances. 

Senators Sports and Entertainment said a condition of any sale would be that the team remains in Ottawa. The winning bidder for the Senators would also have the opportunity to build a new arena at LeBreton Flats, if the lease agreement is finalized.

Nussbaum says the NCC has a very "positive" relationship with the current management of the Senators, and they are "very clear" there will be new owners at some point.

"But the message that we've heard is there's an expectation that there will continue to be interest by new owners in the team to proceed with the construction of a downtown arena. So there's no cause for concern," Nussbaum said.

"Yes, clearly a change of ownership is a major step in this process; but as I say, very much looking forward to meeting the new owners and continuing the discussion with the goal of having a lease signed in the fall of this year."

The six-acre parcel of land for the arena is on Albert Street between City Centre Avenue and Preston Street, between two LRT stations. In December 2021, the NCC launched a request for expressions of interest for the land, as well as another smaller site farther north, seeking "bold and transformational" ideas.

The Senators-led consortium for the NHL arena at LeBreton Flats includes Sterling Project Development, Populous, Tipping Point Sports and Live Nation.

Nussbaum said the new owner of the Ottawa Senators would decide when construction begins on the new arena, and when it will open for the public.

"Ultimately since we're talking about a lease that the organization itself will be the leasee, it will be their decision in terms of establishing a timeline for construction," Nussbaum said. "Obviously, there will be a number of important planning elements to get done before then.