Finance briefs: Lansdowne financial update, Surplus properties, Trade war preparations

Special to WC Online

CITY HALL – The Finance and Corporate Services committee (FCSc) received the 2024 Lansdowne annual report.

A photo of City Hall.

“The partnership between the city and the Ottawa Sports and Entertainment Group (OSEG) showed improved revenues of $59.5 million in 2024, a four per cent increase over the previous year, with a similar increase in interest payments due to higher interest rates,” city staff released in a statement following today’s (Feb. 4) regular committee meeting.

There was an increased number of events at Lansdowne, with TD Place hosting 180 ticketed events, 10 more than in 2022-2023. Lansdowne’s approximately 350,000 square feet (32,545 sq. metres) of rentable retail and office space was fully leased at the end of the 2023-24 fiscal year as well, and parking revenues were up 27 per cent over the previous year.

“The partnership continues to experience net financial losses, however, emphasizing the need for strategic improvements to achieve long-term sustainability,” staff said.

After non-cash depreciation, interest and borrowing costs, the partnership’s net loss from recurring operations was $9.2 million, a slight decline from $9.1 million in the 2022-23 fiscal year. The city is still not expected to receive any distributions from the partnership over the 40-year term of the agreement as OSEG is not expected to recover all the equity It has contributed to date.

“In the past year, the city worked with OSEG, local community associations, the Glebe Business Improvement Area and Ottawa Tourism to attract more residents and visitors to the site,” staff said. 

From June 2023 to May 2024, the urban park hosted 409 activities over 220 events days and 56 farmers’ market days. 

With more eventscity revenues increased by 21 per cent over 2022 and exceeded revenue expectations by 24 per cent, reducing the park’s operating costs,” staff said.

The FCSc approved declaring the following five city-owned properties as surplus and to have them marketed for sale.

  • 2575 Reaneyhill Way in Metcalfe
  • 3131 Jockvale Rd. in Barrhaven
  • 7010 Parkway Rd. in Greely
  • 1127 and 1137 Mill St. in Manotick

“All five properties have zoning that meets the terms of the Affordable Housing Land and Funding Policy and 25 per cent of net proceeds from these sales will help fund city affordable housing projects,” staff said. “The properties also meet the terms of the Parkland Acquisition and Funding Through Property Disposal Policy, so another 25 per cent of proceeds will fund the development of municipal parks and recreation facilities.”

The FCSc directed staff to provide an update on the potential negative impacts of a Canada-U.S. trade war on the city’s procurement practices.

“Staff will also devise a plan to ensure city procurement bylaws and processes support the purchase of local, Canadian and non-American goods and services, wherever possible,” staff said. “The city will work with other levels of government and businesses to create local supply chains for products and services that are currently being purchased from US-based companies.”

Mayor Mark Sutcliffe will meet with local businesses to develop an action plan to promote local products. He will also work with the City of Gatineau to push to eliminate interprovincial trade barriers.

Items requiring council approval will rise to council on Wednesday, Feb. 12.

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