Ottawa Senators, NCC complete sale agreement for 11 acres at LeBreton Flats

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The dream of an arena closer to downtown has taken a massive step toward becoming a reality.

The Ottawa Senators and the National Capital Commission announced on Monday that they have reached an agreement for the purchase and sale of land parcels totalling approximately 11 acres at LeBreton Flats.

League sources told Postmedia on Monday afternoon they believe the Senators have agreed to pay just north of $30 million for the land, which is just 10 minutes west of Parliament Hill.

The original agreement with the NCC said the Senators would pay “fair market value” for the space to build a new rink and entertainment district.

This represents a significant step in what has been a lengthy process. Postmedia reported on July 16 that the two sides were on track for a deal, and the hope was that it would be approved by the NCC’s board of directors next month.

“We are pleased to reach an agreement of purchase and sale with the NCC to take the next step in this process,” Senators president and chief executive officer Cyril Leeder said in a statement.

“There are still many more hurdles to clear, and we look forward to working with the NCC and other stakeholders to achieve our shared vision of creating an event centre at LeBreton Flats that can be enjoyed by our Ottawa-Gatineau community.”

Both sides will now go ahead with the next steps in the project, which include zoning, design and approvals, as well as decontamination of the land parcels to prepare for construction.

Naturally, NCC officials were thrilled to get this part of the agreement across the finish line. The project will include new housing, a hotel and a district that will include restaurants.

“The promise of a major events centre will provide a lively and convenient attraction for residents and visitors, inject new energy and excitement into the core of the nation’s capital and further catalyze the development of LeBreton Flats,” said Tobi Nussbaum, CEO of the NCC.

“This agreement builds on the two previous real estate transactions completed by the NCC since 2022 on the Building LeBreton project that will see over 2,000 new housing units, along with new retail and commercial spaces built on the site.”

The final deal didn’t happen as quickly as Senators owner Michael Andlauer would have liked, but there was no shortage of issues to overcome, and it is a complex agreement. Andlauer has stated he’d like to bring the club to downtown Ottawa because that’s where the fans have indicated they want it to be.

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The NCC had set aside a 10-acre piece of land on Albert Street between Preston Street and the City Centre, just west of Ottawa’s new super-library, which is now under construction. It’s believed the arena project will also include a hotel and residential space.

Nussbaum and Leeder announced on Sept. 20, 2024, that the two sides had reached an agreement in principle for the National Hockey League club to buy the land.

Since then, the NCC and representatives of the Senators, led by Leeder, have held regular talks. NHL deputy commissioner Bill Daly was thrilled to hear the news.

“It represents progress on a project that’s been a long time in the making _ a significant step forward,” Daly told Postmedia in an email. “Credit to the parties for their commitment to getting it done.”

Postmedia reported in June that sources with knowledge of the talks said the two sides were trying to determine a proper price for the five parcels of land, and a significant gap remained to be bridged.

The indications were that the NCC and the Senators both had assessments of the land’s cost done, which left the parties trying to determine what constituted “fair market value.”

Postmedia also reported that there was a third-party assessment to help move the talks along and clear that hurdle. There is some talk that the NCC didn’t agree with the initial assessments, and that’s why they had to agree to a third-party assessment.

The Senators will celebrate their 30th year at the Canadian Tire Centre in January. The reality is the Senators will still be in the rink for at least five more years because nobody can predict when the new building will open until there are shovels put in the ground.

The club also had to finalize its financing because the cost of a new arena will be in the range of $1.1 billion. The Calgary Flames are in the midst of a new arena project and have estimated that the price tag will be over $1 billion.

The Senators will also have to work with all three levels of government — federal, provincial and the City of Ottawa — to make this a reality. That’s why the Senators have stated there are still several hurdles to clear before this is done.

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