The partners in the LeBreton Flats redevelopment project have agreed to meet and attempt to reconcile their differences even though the two major partners are trying to sue each other for a combined $1.7 billion.
In a statement released Friday, GBA Development, the firm responsible for managing the project, said that while preparing its statement of defence, the company’s legal team encouraged mediation between the parties before the National Capital Commission’s deadline of Jan. 19. The final decision is expected to be announced by the NCC at their board meeting on Jan. 24.
The NCC, which owns the land slated for development, gave notice in December that it plans to terminate the agreement with the partners due to their ongoing legal dispute.
GBA says all three parties have agreed on the mediation in hopes that they can move forward with the project before the formal termination. GBA CEO Graham Bird stressed the importance of the project in the statement.
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“IllumiNation LeBreton is too important to fail and is worth salvaging,” said Bird. “We are hopeful that the parties can take this opportunity to keep the project moving forward.”
Warren K. Winkler, former chief justice of Ontario, will be leading the mediation talks. According to GBA, Winkler was chosen due to his experience with “complex labour, corporate and class-action disputes.”
The NCC, when asked for comment, said it was not in a position to comment at this time. Its final decision on whether or not to move forward with the project will be made on Jan. 19.
Statement of Defence
GBA’s statement of defence against Capital Sports Management, Inc. and Eugene Melnyk disputes that GBA had little to do with the development of 900 Albert and that any information to which they had access was also available for CSMI and the public
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Bird states that Trinity, the developers responsible for 900 Albert and the other major partner in the project, retained GBA for four months in 2016 to help with certain infrastructure issues in the project such as the stage 1 plan application with the city. The company had no part in designing or financing the project.
While Melnyk claims CSMI wasn’t kept abreast of the development of the tower, Bird states that “the 900 Albert project was specifically disclosed to CSMI and discussed with respect to land valuation and the economic zone of influence.”
GBA also claims that it commissioned comprehensive studies of the real estate marketplace in the city and that according to those studies, the LeBreton Flats development would “unequivocally” not be negatively affected by the 900 Albert project.
According to the statement, Bird said that after Trinity submitted the municipal applications, Melnyk and CSMI took issue, saying that the applications were filed without their consultation, approval or notice. Melnyk and CSMI then objected to any steps being taken to further the development of LeBreton.
Despite that, GBA claims that CSMI’s representative, Geoff Publow, was still working with GBA to prepare and submit the applications Melnyk was protesting against. GBA says that contrary to what CSMI states, they were invited to review and approve the applications approximately two months before they were submitted on Aug. 31.
GBA also claims that Melnyk asked for Trinity to pay for the arena and that the Senators would lease it for 30 years rent-free.
Bird is asking for the court to dismiss Melnyk and CSMI’s action.
With files from Beatrice Britneff
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