Distractions and perplexities

So what is the deal for Lansdowne that is up for discussion anyway?

The media is carrying stories indicating that Councillors are actively working to restructure the great Lansdowne Partnership which was proclaimed with such ballyhoo on September 2. It is surprising that some Councillors who rushed to praise the proposal on the moment of its release (and, in one case, lauded the arrangement prior to seeing it!) are now working to shore up the plan and patch its weak points.

To be fair to OSEG, the private sector players in the deal, they have been consistent in affirming that there is some flexibility to their proposal. However today, Mr. Greenberg, as spokeman for OSEG, indicated that he is coming to the end of his patience. He wants Council to sign on the dotted line in early November, commiting the City to the arrangement.

I suspect that much of the activity by Councillors is in reaction to the possibility that OSEG will walk away. No doubt some Councillors are so closely associated with this plan that they will offer further concessions to OSEG to keep them in the game.

The principals of OSEG say that their interest is in bringing football back to Ottawa. Put aside all the discussion about other matters and talk about what they claim is their objective.

Unfortunately the entire discussion is obscured by the notion of "revenue neutrality". In order to generate tax revenues to pay for the stadium and civic centre renovations, some Councillors are convinced that they need to grant land for a shopping centre, offices, a hotel and residences.

Mr. Greenberg is right when he says that if the shopping centre is reduced in size, tax revenues would be diminished and (using the crackpot accounting favoured by some) the delicate balance of "revenue neutrality" would be disturbed. Mr. Greenberg goes on to say that with a reduced shopping centre, the "gap" in tax revenue could be made up by authorizing offices, a hotel and residential development.

All this discussion is akin to the medieval issue of how many angels could dance on the tip of a pin. The concept of "revenue neutrality" is simply invalid. We should stop talking about a nonsense topic.

The real question which Councillors should be considering is whether they are willing to commit 129.3 million dollars. Any Councillor who votes to support that should explain why that is the most important investment for the City to make -- in particular, why it trumps fixing the sewer system or improving transit. He/she should also explain why such a large investment is required.

If the purpose is to extend the use of the civic centre, they should ask exactly what that would cost. They should eliminate the frills and invest in the basics, if they want to do anything at all. Then they should look at the stadium. If they really want to have a working football/soccer stadium, determine how little could be spent to make it workable. Invest that minimal amount and see if football/soccer is viable. From the revenue generated from the civic centre and stadium make further investments as appropriate.

But this discussion about restoring the civic centre and stadium should be divorced entirely from the concept of "revenue neutrality".

There is no reason to size the commercial development on the site to generate a specific amount of property tax. If there is a market for the commercial enterprises proposed, they will be built somewhere and taxes will be paid.