In the heart of Ottawa lies Lansdowne Park, a public asset that has undergone over a decade of controversial redevelopment under the banner of public-private partnerships (P3). Initially hailed as a visionary collaboration between the City of Ottawa and the Ottawa Sports and Entertainment Group (OSEG), Lansdowne has instead become a cautionary tale; an emblem of how private interests can hijack public value, with taxpayers left holding the bill. Despite grand promises of economic revitalization, self-sustaining revenues, and community benefit, the Lansdowne project has consistently failed to deliver on its core goals.

The Origins: Lansdowne 1.0 and the Rise of the P3 Model
The current saga began in 2007, when structural concerns forced the closure of Frank Clair Stadium. In response, the City sought partners to reimagine Lansdowne as a revitalized hub for sports, entertainment, and urban life. The resulting Lansdowne Partnership Plan (LPP), approved in 2010, was a no-bid, sole-source agreement with OSEG. It created a 30-year limited partnership through which OSEG would refurbish the stadium, build retail and residential developments, and share profits with the City through a revenue “waterfall” model.

The City’s share of the original $362 million redevelopment was around $210 million, used for stadium upgrades, a new urban park, parking facilities, and relocating the historic Horticulture Building. OSEG contributed roughly $152 million, not as direct capital, but largely through operational losses rolled back into the project in exchange for an 8% return on equity. The land remained public, but OSEG was granted long-term leases for commercial components, at just $1 per year.

A Financial Model Built on Sand
The P3 structure was sold to the public with the assurance that Lansdowne would eventually pay for itself. Early forecasts predicted a $22.6 million net return to the City. In reality, those profits never materialized. Retail revenues rose steadily, but so did costs. By 2016, OSEG was reporting $14.4 million in losses. As of 2023, the partnership had not returned a cent to municipal coffers. The revenue waterfall prioritized OSEG’s return on equity before any surplus could flow to the City, meaning taxpayers bore the financial risk, while private partners had guaranteed returns.

Worse, the project locked the City into a complex financial structure that made renegotiation difficult. The Auditor General of Ottawa has since criticized the model, citing opaque accounting and a lack of oversight over cost estimates and projections.

Lansdowne 2.0: Doubling Down on a Broken System
Rather than reassess the underlying flaws of Lansdowne 1.0, the City has pressed forward with an even more ambitious sequel: Lansdowne 2.0. Approved by Council in 2023, this next phase proposes to demolish and rebuild the north-side stadium stands, construct a 5,500-seat event centre, and erect two residential towers atop a retail podium. The estimated cost is $419 million, with over $300 million of that funded by the City through new debt.

Despite lessons from the past, the same P3 framework persists. The City continues to rely on OSEG’s management and forecasts, despite repeated underperformance. Recent findings from the Auditor General suggest that construction costs may be underestimated by as much as $74.3 million, bringing the actual cost closer to half a billion dollars.

Community Concerns Ignored
One of the most damning aspects of the Lansdowne saga has been its consistent disregard for community needs. Neither Lansdowne 1.0 nor 2.0 includes affordable housing. This, in the midst of a housing crisis, is a glaring omission. Public green space will be reduced by more than 50,000 square feet in Lansdowne 2.0. Traffic and parking concerns persist, especially given the site’s poor access to Ottawa’s light rail system.

Environmental groups have flagged the project for increasing the urban heat island effect and ignoring climate resilience standards. Ecology Ottawa and other watchdogs note that the loss of mature trees, additional hard surfaces, and energy-intensive stadium lighting run counter to the City’s own climate goals.

Public feedback has been overwhelmingly negative. A survey by the advocacy group Better Lansdowne found that 77% of respondents opposed the new plan. Critics have called for a full reassessment, independent cost-benefit analysis, and alternative development models that prioritize public use and affordability.

The Broader P3 Problem
The Lansdowne project exemplifies the risks inherent in the P3 model. When private partners are guaranteed returns and public entities assume the risk, the result is rarely equitable or efficient. While the private sector pursues profit, as it must, government has a duty to prioritize public interest. In this case, the lines blurred, and profit came first.

Public-private partnerships are often promoted as a way to leverage private investment for public good. Yet in practice, they can enable private actors to extract value from public land and public funds, with minimal accountability. Lansdowne is a textbook case of this imbalance.

Time to Reclaim Public Space
As Ottawa moves forward, the Lansdowne experience should serve as a clear lesson: public infrastructure must be publicly driven. The City needs to step back, reassess its relationship with OSEG, and consider alternative models that place public interest at the centre. This could include establishing a municipal development corporation, returning retail management to the City, and mandating affordable housing in all new residential builds.

If Lansdowne Park is truly to be the “people’s place” as once envisioned, it must serve the city, not subsidize private profit. The future of Ottawa’s public assets depends on getting this right.

Sources
• Ottawa City Council Reports, 2023–2025 – ottawa.ca
• Ottawa Auditor General Report, June 2025 – link2build.ca
• Better Lansdowne Community Survey – betterlansdowne.ca
• Ecology Ottawa – ecologyottawa.ca
• Ottawa Business Journal Archives – obj.ca
• Lansdowne Park Redevelopment History – en.wikipedia.org