Lansdowne Park costs $7.6M higher than expected

The revitalization of Lansdowne Park will cost $7.6 million more than expected according to new reports released Thursday night.

The documents show the air rights to develop buildings in Lansdowne Park with condominiums and offices above retail space will cost Minto Developments — the developer that won the rights — $2.3 million less than expected.

The lower amount comes even after the city, which expected to bring in $10 million for those rights, held a bidding process.

Minto Developments won the rights to build an office building and condo buildings in the park. Minto was also the only developer to submit a bid to construct the office building.

Another Ottawa developer, Broccolini Construction, told CBC News his company wasn't interested in submitting a bid because they weren't comfortable with the city's terms of reference on the project.

Derek Howe of Broccolini Construction noted that Lansdowne is still unproven as a commercial site, so some developers weren't interested in building an office tower on speculation — without having any tenants on-board.

The other additional costs were an extra $2.5 million to move and renovate the Horticulture Building, and $2.8 million the city will have to borrow to deposit in its social-housing reserve fund, in lieu of actual affordable housing space at Lansdowne.

City staff who wrote the reports now advise officials to discuss the concerns with Minto, whose president and CEO Roger Greenberg is one of the heads of the Ottawa Sports and Entertainment Group (OSEG).

OSEG is the city's partner to redevelop Lansdowne.

The report and its recommendations will go to the city finance and economic development committee Feb. 16.

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Lansdowne Park costs $7.6M higher than expected