Ottawa Senators, National Capital Commission agree to build a new arena at LeBreton Flats

Sens owner speaks about agreement for new arena Fans in Quebec react to the Ottawa Senators agreement for a new arena in LeBreton Flats during the team inter-squad game in Gatineau.

An agreement has been reached that will allow the Ottawa Senators to build a new NHL arena at LeBreton Flats.

After more than two years of talks, National Capital Commission CEO Tobi Nussbaum announced Friday that an agreement in principle has been reached between Capital Sports Development Inc. (CSDI) and the NCC.

Nussbaum said the NCC had initially envisioned a long-term lease, but through negotiation agreed to sell the land to the Ottawa Senators at fair market value. He said the parcel of land the Senators will be buying is "just over 10 acres." An assessment to determine the value of the land has yet to be done, meaning a price was not available Friday.

Senators president Cyril Leeder said the team needed more than the six acres that first came up in negotiations.

"Today's arena, you need a little more space," said Leeder. "This will allow us to have a site we can design around."

Leeder said design work has yet to begin, meaning a timeline for building the new arena was not available.

"It will be years, not months, before shovels are in the ground," Leeder said.

Leeder did say, however, the Senators are expected to own the land by sometime next year.

"While today’s announcement marks an important milestone, the NCC and CSDI acknowledge that there is still significant work ahead. With the start of the due diligence period, the NCC and CSDI will now work together to outline next steps and project timelines," the Senators said in a news release Friday. "Negotiations are also ongoing between the NCC and the Algonquin Nation to ensure the Nation secures short and long-term benefits and is a true partner in what promises to be a transformational opportunity for Canada’s capital."

Leeder added that an arena at LeBreton Flats will help expand the fanbase in Gatineau.

"Our owner has spoken about that many times, the importance of being more friendly, more cooperative with the Gatineau market, the francophone fanbase. Being at LeBreton accomplishes that," he said. "I think it will mean more French acts coming to Ottawa, as well. The events that go to Montreal that bypass Ottawa, I think we'll have a lot of French acts coming to the new venue."

Leeder told TSN 1200 on a recent broadcast that LeBreton Flats is a prime location for a new arena, mentioning the Confederation Line and the Trillium Line have stations along the LeBreton Flats area.

While transit and walk-up crowds will be a big part of the fan base for Senators games if a new arena is built at LeBreton Flats, Leeder says, "Initially, you're going to need some parking on a LeBreton site."

Concerns the Senators had over the number of parking spaces were addressed, according to CTV News sources.

"One of the great things about this location is it's right at the nexus of the east-west and north-south LRT," Leeder said Friday. "This arena is being built for the next 50 years and we like that it's right at the nexus of the LRT."

Leeder has previously suggested that the cost of a new arena would be in the range of $1.2 to $1.5 billion, but he said Friday it was too soon to discuss costs.

"We're not there yet. Architects will tell you to get to your cost you need 30 per cent of design work done. We're a long ways from that."

He also said he was not expecting taxpayers to pitch in to fund it.

"If you look at the history in Canada, public venues, whether arenas or stadiums, have not been funded by the taxpayer. That's the history, it's not the same in the United States, but that's what we've done in this country and that would be our expectation going forward as well."

Municipal tax dollars have gone toward arenas in some parts of the country, however. The City of Edmonton and the City of Calgary have put city funds towards new arenas in their respective municipalities.

The City of Ottawa is also responsible for paying the construction costs for the Lansdowne 2.0 plan, which includes improvements to TD Place Stadium and a new hockey arena for the Ottawa 67's and the Ottawa Charge. The city's auditor general in June pinned the cost of the construction project at $493.4 million. The City will be taking on more than $200 million in debt to finance the project, with debt servicing estimated at more than $16 million per year. The sale of air rights over the existing Civic Centre, allocation of the incremental future property taxes, a ticket surcharge, and a restructuring of the current financial distribution model with the Ottawa Sports and Entertainment Group will also help fund Lansdowne 2.0.

Ottawa Mayor Mark Sutcliffe offered his congratulations on social media Friday.

"Congratulations to the Ottawa Senators and the NCC on reaching this agreement. It’s very encouraging to hear about this big step forward. I’m looking forward to hearing more about this potentially very exciting economic opportunity for Ottawa," he said.

Sutcliffe has previously said he was not supportive of municipal funds being used to help pay for a new arena, but also said he would not rule it out.

Leeder added that they would need to do something special with the Canadian Tire Centre when it's no longer needed as an arena.

"If and when we vacate this site, we're going to need to do something special with these lands, so that will be part of the process, part of that work that will go on."