Lansdowne 2.0: The half-billion-dollar deal that asks Ottawa to trust again

There are moments in a city’s life when the decisions made at council chambers shape not just its skyline, but its soul. The redevelopment of Lansdowne Park has entered such a moment. The City calls it Lansdowne 2.0. Once again we are asked to believe that this time things will finally work out. I am respectfully saying: no thank you.

I support investing in our city’s infrastructure, in affordable housing, and in vibrant community spaces, but I am deeply opposed to the kind of public-private partnership (PPP) model that Ottawa keeps repeating – especially when the affordable housing promise is quietly reduced, when the public carries the risk, and the private partner walks away with much of the upside.

In the case of Lansdowne 2.0, the City and its private partner, Ottawa Sports and Entertainment Group (OSEG), propose to rebuild the north-side stands and arena, build new housing towers, bring retail/condo podiums, and “revitalize” the site. The projected cost is now $419 million, according to City documents. The City’s Auditor General warns the cost could be as much as $74-75 million more and that revenues may fall short by $10-30 million or more. That alone should give us pause, but the real problem goes beyond the balance sheet.

The public-private problem
The idea of PPPs sounds appealing: share risk, leverage private capital, deliver publicly beneficial projects faster. But the repeated pattern in Ottawa is that the public land, public debt and public oversight become the junior partner in the deal. When good times happen, the private side takes the returns; when costs rise or revenues shrink, the City and the taxpayer carry the burden. We know this from Lansdowne 1.0 and from other large projects in the city. The question is not simply “Is this a partnership?” but “Who bears the downside when things go off plan?”

The Auditor General’s review of Lansdowne 2.0 flagged that the City is “responsible for the cost of construction…..and any cost overruns” even though much of the revenue upside depends on later ‘waterfall’ arrivals. If we’re asked to commit hundreds of millions now in the hope of returns later, we must demand transparency, risk caps, guaranteed affordable housing and binding public-benefit commitments. Anything less is not renewal, it’s risk-shifting.

Affordable housing is not optional
At a time when Ottawa faces an acute housing affordability crisis, we are told that “housing towers” are part of the funding model for Lansdowne. But the developer’s track-record of promising affordable units, and then claiming they can’t deliver is worn and familiar. In the updated Lansdowne plan the number of guaranteed affordable units was cut or deferred and shifted toward “air-rights” revenues and condo sales, effectively betting public good on speculative real estate. Affordable housing should not be a line-item to trim when the spreadsheets wobble. It is the social licence that allows private profit on public land. Approving a plan that pares back affordable units yet asks for public exposure is indefensible.

Traffic, transit and neighbourhood liveability
The Lansdowne site sits beside the Rideau Canal, the Glebe and the Bank Street corridor – one of the most traffic-choked corridors in the city. Yet the plan envisions adding 770 new residential units (down from an original 1,200) on top of retail podiums. Meanwhile, the city’s own “Bank Street Active Transportation and Transit Priority Feasibility Study” (June 2024) underlines that Bank Street is already at capacity for cars and buses, that pedestrian and cycling infrastructure is insufficient and that any added vehicle traffic will further degrade mobility.

Without a clear strategy to manage car access, parking, transit loads, cycling/pedestrian safety and construction impacts, this redevelopment risks worsening gridlock and degrading the very neighbourhood livability the project claims to enhance.

Sports tenants and viability
One of the central rationales for Lansdowne 2.0 is that the existing arena and stands are aging and that new facilities will retain sports franchises and major events. Yet the plan, as approved, reduces capacity for hockey to 5,500 seats and concerts to around 6,500 – considerably smaller than many mid-sized arenas. Meanwhile, neighbouring downtown developments such as the proposed new arena for the Ottawa Senators raise questions: what is Lansdowne’s tenant strategy once the major franchise relocates? If the largest anchor tenant leaves, the revenue model collapses. The City is committing hundreds of millions without a transparent long-term sports strategy. Sports teams argue they cannot stay if capacity or amenities shrink. If they depart, the burden falls back on taxpayers.

Commercial podiums and vacant retail
The redevelopment includes a shift from 108,000 square feet of retail to 49,000 square feet; a cut because local business viability was weak in the first phase. Even today many of the commercial units around Lansdowne 1.0 remain vacant because rents are too high for independent businesses and the location’s infrastructure doesn’t support consistent foot traffic outside game days. The plan’s assumption that retail will compensate for public investment is shaky at best. Until we see real evidence of market demand and rental levels that support small business and serve neighbourhoods, not just downtown condo-dwellers, we are betting public money on commercial models that already failed once.

The opportunity cost
Let’s not forget what’s at stake. Nearly half a billion dollars in public exposure. Imagine what that money could do across the city: hundreds of affordable housing units in multiple wards, refurbished community centres, libraries, rinks, park renewal, neighbourhood transit links. Instead, we’re being asked to invest that money in one downtown site, tied to a private partner’s spreadsheet and future real-estate and event-market assumptions. This is a question of equity: do we serve one marquee site or many? Do we favour single big deals or dozens of small, proven community-led investments?

A better path forward
I believe in renewal. I believe Lansdowne and its broader site matter. But I cannot support the current model unless three things change:
1. Full transparency: release the full pro-forma, risk tables, debt-servicing schedules, and waterfall projections.
2. Binding affordable-housing guarantees: not aspirational “10 per cent of air-rights revenue,” but concrete units or legally-binding contributions to affordable-housing stock.
3. An urban-livability strategy: traffic and transit modelling for Bank Street and the Glebe; tenant guarantees for sports franchises; a retail strategy that supports small local business; and a cap on public exposure in cost overruns.

If a deal only works when the public is last in line for returns, when affordable housing is trimmed, when traffic worsens and local business fails, then we shouldn’t do it. That is not civic renewal. It is a subsidy for speculative dysfunction.

Public land, public money, public trust. If those three are not aligned, the right move is not to sign another 40-year partnership and hope for the best. It is to pause, open the books, redesign the deal and ensure the structure serves the city first, not the private partner. Ottawa can build better than this. It just needs to decide whose interests it wants to serve.

Sources:
• CityNews Ottawa: OSEG revamp cost jumps to $419 M.
• City of Ottawa / Engage Ottawa: Lansdowne 2.0 project/funding details.
• Auditor General of Ottawa: cost under-estimation, financial risk.
• Glebe Report: traffic/transportation study on Bank Street.

Sustainable, Affordable, Inclusive: Canadian Cities Reshaping Rental Housing

For much of the 20th century, Canadian cities played a direct role in developing and managing affordable housing, often in partnership with provincial and federal governments. Public housing projects, such as Regent Park in Toronto and Benny Farm in Montreal, were built to provide low-income families with stable rental options. However, starting in the 1980s and accelerating through the 1990s, municipalities largely withdrew from housing development as senior governments cut funding and shifted responsibility to the private sector. The federal government ended its national social housing program in 1993, leaving provinces and cities with fewer resources to maintain or expand affordable housing stock. As a result, municipal involvement in housing became limited to zoning regulations, subsidies, and partnerships with private developers, contributing to the affordability crisis seen today.

Canadian cities are beginning to take a more hands-on approach to tackling the housing crisis again, by developing their own low-cost community rental properties on municipally-owned land. With rising rents, stagnant wages, and increased housing demand, affordability has become a pressing concern across the country. Many municipalities, recognizing the limits of relying solely on the private sector, are leveraging public land to create permanently affordable rental options for lower-income residents.

One of the key advantages of this approach is the ability to bypass speculative real estate markets that often drive up costs, and limit long-term affordability. By building on land they already own, cities can keep costs down and ensure that these units remain accessible to those in need, rather than being converted into high-priced rentals or condominiums. Toronto’s Housing Now initiative is a prime example, using city-owned lands to develop mixed-income communities where a significant portion of the units are dedicated to affordable rental housing. These projects are structured to remain affordable over the long term, either through direct municipal ownership or partnerships with non-profit housing providers.

Collaboration with non-profit organizations, housing cooperatives, and community land trusts has become an essential part of this strategy. Many cities recognize that while they can provide the land and initial investment, long-term management and tenant support are often best handled by organizations with experience in affordable housing. Vancouver has been a leader in this area, working with its Community Land Trust to develop and manage affordable units across the city. These partnerships not only ensure that affordability is maintained in perpetuity but also allow for a more community-focused approach to housing, where tenant needs and long-term sustainability are prioritized over profit.

Another emerging trend in municipal-led housing development is the use of modular and prefabricated construction. These methods allow for faster, more cost-effective builds, reducing both construction time and expenses. Ottawa and Edmonton, for example, have invested in modular housing projects to provide rapid solutions for those in immediate need, including people experiencing homelessness. These developments often integrate support services such as mental health care, employment programs, and childcare, recognizing that affordability is about more than just keeping rent low—it’s about providing stability and access to essential resources.

Policy changes at the municipal level are also playing a crucial role in supporting these initiatives. Some cities have adjusted zoning laws to allow for higher-density affordable housing developments or have introduced inclusionary zoning policies that require developers to include affordable units in new projects. Montreal’s 20-20-20 bylaw is an ambitious attempt to balance private development with affordability, mandating that large residential projects include at least 20% social housing, 20% affordable housing, and 20% family-oriented units. While policies like these don’t create city-built rental properties directly, they reinforce the broader municipal commitment to ensuring housing remains within reach for lower-income residents.

Despite the progress being made, challenges remain. Municipal governments often face funding constraints, relying on provincial and federal support to bring these projects to life. Bureaucratic hurdles and community opposition—often fueled by NIMBY (Not In My Backyard) sentiments—can slow down approvals and limit where these developments can be built. However, growing public awareness of the affordability crisis has led to increased political pressure to push projects forward. Programs like the federal Housing Accelerator Fundand the Rapid Housing Initiative are providing much-needed financial backing, allowing cities to expand their efforts and bring more units online.

The future of municipal-led affordable rental housing looks promising. While cities alone can’t solve Canada’s housing crisis, their willingness to take a more active role in development is a step toward ensuring that affordable housing is treated as essential infrastructure rather than a market-driven commodity. If these efforts continue to grow, they could serve as a model for other municipalities seeking sustainable, long-term solutions to the housing affordability challenge.