Despite having a “successful year” with 188 events at TD Place,
Lansdowne Park
had an overall net loss of $11.1 million for the fiscal year ending March 31 — $1.9 million higher than the previous year.
The City of Ottawa owns the land and all buildings at Lansdowne and entered into a partnership with the Ottawa Sports and Entertainment Group (OSEG) in October 2012.
But the partnership has posted
net financial losses for every fiscal year
and has yet to generate net positive cashflows, said an update to be presented to the city’s finance and corporate services committee on Oct. 29.
TD Place had 188 events in the past fiscal year, compared to 180 events in the previous year, said an update on the partnership.
The partnership generated revenues of $62.8 million, an increase of $3.3 million, or six per cent, compared to the previous year. Total operating expenses of $58.1 million were $3.8 million, or about seven per cent, more than the previous year.
Lansdowne’s approximately 350,000 square feet of rentable retail and office space was leased at 99 per cent at the end of the last fiscal year, compared to 100 per cent for the previous year. Parking revenues continued to grow from the previous year, reaching pre-pandemic levels, the update said.
However, the partnership has yet to generate net positive cashflows aside from the fiscal years of 2015, 2021-22 and 2023-24. Positive cashflows in those years were “due to proceeds of from borrowing, but no distributions paid out.”
City councillors are preparing to hold a special session on Oct. 29 to debate and vote on Lansdowne 2.0, a redevelopment plan that includes a new event centre and north-side stands for the TD Place stadium and two new towers.
New revenue will include $33.9 million in air rights for the towers and $69 million in property taxes. The city also expects to realize $44 million in municipal accommodation taxes and $15 million in ticket surcharges.
The plan will produce a $418.8-million asset,
but will cost the city only $130.7 million
, thanks to new revenue, Mayor Mark Sutcliffe told reporters on Monday, with no new tax increases.
Sutcliffe argued the “cost of doing nothing” would be high. The annual cost to the city for Lansdowne 2.0 would be $4.3 million, but the cost of deferred construction, maintenance and operating costs would add up to $8 million a year.
According to the update on the partnership, OSEG contributed a gross amount of $160.5 million in equity as of March 31. Only $23.6 million has been repaid as part of the 2015 settlement approved by city council.
The partnership continues to contribute to a lifecycle fund, even if there are negative cashflows. “These financial results support the need to improve Lansdowne Park and make the Lansdowne partnership financially sustainable over the term of the partnership,” the update said.
The city is not expected to receive any distributions from the partnership over the 40-year term of the agreement. Distributions to the lifecycle fund are maintained at $59.6 million over the term of the agreement.
Our website is your destination for up-to-the-minute news, so make sure to bookmark our homepage and sign up for our newsletters so we can keep you informed.
