Lansdowne 2.0 Redevelopment and Authorization to Proceed with Legal Close and Implementation Plan

Council was asked to

1. as amended That City Council: Receive the information related to the processes and due diligence exercises undertaken in preparation of the recommended approach to the redevelopment of Lansdowne Park, as described in this report and including as follows: Previous Motions and Directions to Staff Strata Property Parcel for the Subterranean and Property Air Rights Request for Offer Fairness Commissioner Report Partnership Waterfall Distributions Social Procurement Framework Approve the redevelopment of Lansdowne Park (Lansdowne 2.0), as described in this report and including as follows: Approve the amended funding strategy and business case for the construction of the City’s new Event Centre and North Side Stands at Lansdowne as detailed in this report and including as follows: Approve the decrease in budget authority of $279 thousand, for a total budget authority of $418.8 million, which is inclusive of the $22 million approved for spending to date; Approve the increase in budget authority of $621 thousand for a total of $19.2 million for the construction of City-owned parking beneath the North Side Stands; Approve the capital budget authority of $45.9 million for the construction of the new retail element, such that $39.2 million will be reimbursed by the Lansdowne Master Limited Partnership and $6.7 million will be funded from the sale of the subterranean and property air rights, subject to approval of recommendation 2.a.iv; Delegate authority to the General Manager, Strategic Initiatives to execute a severance of the fee simple strata property parcels A, B, C, and D as outlined in Document 2, from the Lansdowne Park lands to support the New Residential Component and to execute an Agreement of Purchase and Sale for air and subterranean property rights for these parcels with Mirabella Development Corporation, for $65 million, under the terms and conditions outlined in this report, with the proceeds from the sale, net of the funds required in recommendation 2.a.iii., $58.3 million, to be allocated as follows and as described in this report: Direct $33.9 million towards the Lansdowne 2.0 Project; Direct $10 million of the subterranean and property air rights to the additional City-owned parking beneath the North Side Stands available for leasing by the Mixed-Use Development to the Parking Reserve to fund the cost of construction of the parking facility and reduce the debt funding needed for this investment; Approve a $14.4 million contribution to the Affordable Housing Reserve; Approve an increase to the Municipal Accommodation Tax (MAT) by 1 per cent effective January 1, 2026 and delegate authority to the City Manager to amend the current MAT agreement to direct the additional 1 per cent to the City for its own tourism purposes, and further direct $2 million per year from the MAT towards the Lansdowne 2.0 Project, as outlined in this report and agreed to with Ottawa Tourism and the Ottawa Gatineau Hotel Association; Approve that 40% of the City's share of the additional 1 per cent of the MAT be allocated to Lansdowne re-payment for the duration of the re-payment period.
2. Approve the continuation of the $20 million line of credit for the Lansdowne Master Limited Partnership post construction for the term of the LMLP agreement, when and if needed, and delegate authority to the City Manager to provide the authorization for its use; Approve the construction of the Lansdowne 2.0 Project, including the City’s new Event Centre and North Side Stands, the City-owned underground parking, and the public realm enhancements, as described in this report, and delegate authority to the General Manager, Infrastructure and Water Services to finalize and execute the contract for the construction of the Lansdowne 2.0 project with EBC Inc., as recommended by Supply Services, based on the best value bid received in response to the Lansdowne 2.0 Request for Tender and as described in this report; Delegate authority to the Ge