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Melnyk Sues Business Partner


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So it looks like the new Ottawa arena in the Lebreton Flats has fallen, well... flat.

 

If you don’t know, their rink is way out of town and Ian effectively impossible to get to for weekday games.  Picture is having our rink in  Abbotsford and trying to get through rush hour to get there.

 

I can’t feel too bad, because anyone going into business with Melnyk at this point has to know what they are getting into.  I have no idea why the National Capital Commission selected his bid over competing ones knowing that he didn’t really have or want to spend the cash.

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4 minutes ago, YEGCanuck said:

I think it is about time for Melnyk to pack it in. He doesn't seem to have the smarts, not to mentioned the funds, to be a successful franchise owner. For the Senators to be viable in today's NHL he would be wise to sell the team.  

No chance of that until at least after he scores some big expansion fee bucks from Seattle while running a barebones franchise in the meantime.

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  • 4 weeks later...

Trinity countersues Melnyk for $1B over LeBreton debacle

Sens owner's $700M suit against Trinity's John Ruddy 'scandalous,' statement of defence claims

Joanne Chianello · CBC News · Posted: Dec 18, 2018 11:38 AM ET | Last Updated: 10 minutes ago
 
john-ruddy-eugene-melnyk.jpg
Trinity chairperson John Ruddy, left, and Ottawa Senators owner Eugene Melnyk, right, are locked in a legal battle that likely spells the end of their joint venture to redevelop LeBreton Flats and build a new NHL arena there. (The Canadian Press/CBC)

Trinity Development and its founder John Ruddy are countersuing Ottawa Senators owner Eugene Melnyk and his sports company for $1 billion, effectively killing any chance of the two ever redeveloping LeBreton Flats or building a new downtown hockey arena.

According to a statement of defence and counterclaim filed Monday, the developer alleges Melnyk's "true aim" is to force either Trinity or the City of Ottawa to pay for a $500-million arena, and claims the hockey franchise has "admitted lacking the cash" to contribute to the project.

Last month, Melnyk and his wholly owned firm, Capital Sports Management Inc. (CSMI), sued his partners in the LeBreton Flats redevelopment project for $700 million — a lawsuit that Trinity calls "meritless" and "an abuse of power."

"The claim against John Ruddy is especially scandalous," reads Trinity's statement of defence. "There are zero grounds in fact or law for suing him personally."

Ruddy and Melnyk are the main partners in RendezVous LeBreton Group, which in 2016 won a National Capital Commission competition to redevelop LeBreton Flats.

That venture is now all but dead, with the two locked in an escalating legal battle and the National Capital Commission's board of directors set to decide on next steps in January.

 
proposed-development-for-900-albert-stre
Trinity's development at 900 Albert St. is a point of contention between the RendezVous LeBreton partners.(TIP Albert GP Inc./City of Ottawa)

Disputes allegations over highrise

The crux of CSMI's lawsuit is that Trinity was in a conflict of interest when it changed its plans to develop 900 Albert St., a property adjacent to LeBreton. Melnyk's company alleged the three-tower complex, which would include Ottawa's tallest building at 65 storeys, was in "direct competition" with — and would siphon investment away from —the nearby LeBreton project.

But Trinity's statement of defence says Melnyk and CSMI executives, including former CEO Cyril Leeder, knew all about the highrise project from the start of the joint venture.

The statement claims CSMI "wrongly alleges that 900 Albert St. changed," when in fact there were no alterations to the density or other elements of the project.

What the statement doesn't mention is that Trinity did alter the project by raising the maximum heights of the buildings from 30 storeys to more than 50 storeys, which would soar above the LeBreton project.

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Heard something about this on the 31 thoughts podcast recently. Something about the alterations would affect the the franchise and NHL financially. I forget the exact details but I think it was over something about zoning, land share , or subsides or something. 

 

This dates back to 3-4 episodes ago. Betman has Melnyk's back from what I understood and that this isn't just Melnyk causing drama but the NHL also putting up a quiet fight. They obviously can't get directly involved. Sue'ing the person directly I don't know how that all works. 

 

So is this high rise project further down the road on another property or are they on the same plot of land? I'm confused.

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