An audit committee meeting was filled with tension on Tuesday as Ottawa city councillors deliberated on the risks associated with moving forward on the Lansdowne 2.0 redevelopment initiative.
The focal point of contention revolved around Auditor General Nathalie Gougeon’s discovery that allocating $17.4 million annually to service debt for the project incurs an “opportunity cost” for the city. Capital ward Coun. Shawn Menard, a prominent project critic, pressed staff to acknowledge that this funding could be redirected to other city priorities based on Gougeon’s findings.
City’s Chief Financial Officer, Cyril Rogers, argued that the question wasn’t fair, emphasizing that Lansdowne 2.0 is projected to generate revenue to offset the costs, which would not be available if the project were to be halted.
During the meeting, councillors engaged Gougeon in discussions about the various risks associated with the $419-million redevelopment plan, including the possibility of a key funding source drying up. Gougeon highlighted concerns about Mirabella Development Corporation’s ability to withdraw from the project with minimal financial repercussions as outlined in the purchase agreement.
Moreover, Gougeon expressed reservations about the optimistic financial forecasts for the Ottawa Redblacks and emphasized the risk of cost overruns, stressing that every additional dollar spent beyond the budget would ultimately burden taxpayers indirectly.
Committee Chair Cathy Curry expressed confidence in the city staff’s response to the report, noting their commitment to implementing Gougeon’s recommendations and providing regular updates to council on the project’s financial and construction status. Deputy Treasurer Isabelle Jasmin reassured that despite the risks, the project remains financially viable even in worst-case scenarios.
As emotions ran high at the meeting, Curry emphasized the importance of council oversight to mitigate risks, underscoring the need for continuous monitoring and assessment of all potential challenges that may arise during the Lansdowne 2.0 redevelopment project.