Quantcast
OSEG carries most of risk: City manager - Metro US

OSEG carries most of risk: City manager

The City of Ottawa would be insulated from the majority of the risk, should a partnership between it and the Ottawa Sports and Entertainment Group to rebuild Lansdowne Park fail.

“I think it’s important to talk about if that happened,” city manager Kent Kirkpatrick told the corporate services and economic development committee in a briefing yesterday.

The majority of operating risks and responsibility for operating losses will belong to the OSEG, said Kirkpatrick. The group would also be responsible for making cash contributions to reserve funds for the lifecycle maintenance of the stadium complex, the Aberdeen Pavilion and parking.

The OSEG would also be responsible for all construction risks and errors in design and estimating, schedule delays, cost escalations and defects, but it would share the financial risk of any environmental liabilities should they arise with the city.

“None are anticipated,” said Kirkpatrick. “More work is needed to be done to ensure that expectation, but the risk would be shared between the city and the OSEG.”

If the OSEG were to cease to exist, it would forfeit all of its rights under its agreements with the city. The city would still receive rent from the mortgage holder and property taxes from retail development.

Ownership of the sports franchisees would also revert to the city.

The project includes the refurbishment of the stadium, the Ottawa Civic Centre and two heritage buildings, the addition of 300,000 square feet of retail space, and the building of a new underground parking garage and a green space.

More from our Sister Sites