News Article: Lebreton project

[Sensung]

Well some of "us think" that the LOC was secured because "he is having trouble paying his bills" but that is pure speculation, and there is no legitimate confirmation of this.

I know if a business had trouble paying it's bills, and approached a financial institution for a LOC, they would do their due diligence, and and IF it were true ( not being able to pay bills) they would certainly not grant the org a LOC.

Someone, not me, suggested that the LOC may have been secured, for exactly that purpose, signing bonuses.

The banks are well aware that Eugene has an offer on the table that will allow him to repay this LOC, as well as his other debts.

They would certainly give him the LOC even if he was having cashflow problems based on the value of the Sens and offers for its purchase.

 

[Tnuoc Alucard]

I still have this gut feeling that land remediation and/or other land-related issues are going to be an issue.

Not sure why, just a feeling I have.

I think the scope of the cleanup will be astronomical and renders the land virtually worthless.

There has already been a announcement, that addressed the Land Remediation costs, for Lebreton Flats ..... the cost will be deducted from the Purchase Price of the Land that the LBG is buying.

 

[Tnuoc Alucard]

The banks are well aware that Eugene has an offer on the table that will allow him to repay this LOC, as well as his other debts.

They would certainly give him the LOC even if he was having cashflow problems based on the value of the Sens and offers for its purchase.

So you know that EM has accessed some or all of his LOC?

 

[BatherSeason]

Well some of "us think" that the LOC was secured because "he is having trouble paying his bills" but that is pure speculation, and there is no legitimate confirmation of this.

I know if a business had trouble paying it's bills, and approached a financial institution for a LOC, they would do their due diligence, and and IF it were true ( not being able to pay bills) they would certainly not grant the org a LOC.

Someone, not me, suggested that the LOC may have been secured, for exactly that purpose, signing bonuses.

Sooo, some of us think something that is wrong because you say its wrong, then you proceed to explain that but they are probably getting the LOC because they can't afford signing bonuses?? You are saying that Melnyk is not broke, but he can't afford to pay signing bonus, so he needed a loan???

Seems like your whole post is a giant contradiction.

 

[armani]

Sooo, some of us think something that is wrong because you say its wrong, then you proceed to explain that but they are probably getting the LOC because they can't afford signing bonuses?? You are saying that Melnyk is not broke, but he can't afford to pay signing bonus, so he needed a loan???

Seems like your whole post is a giant piece of shit.

Corrected.

 

[Tnuoc Alucard]

Sooo, some of us think something that is wrong because you say its wrong, then you proceed to explain that but they are probably getting the LOC because they can't afford signing bonuses?? You are saying that Melnyk is not broke, but he can't afford to pay signing bonus, so he needed a loan???

Seems like your whole post is a giant contradiction.

Well I'm just using a little commonsense and some logic.

But let me ask you this, if YOU were paying a NHL player a signing bonus of 6 million USD on July first, next year, and the remainder of his salary, over the rest of the season, and had some cash flow issues .......... would you take the 6 million out of your saving account, on July 1st, or use the LOC to pay the 6 million, and spread out the repayment to the LOC over the season?

 

[BatherSeason]

Well I'm just using a little commonsense and some logic.

But let me ask you this, if YOU were paying a NHL player a signing bonus of 6 million USD on July first, next year, and the remainder of his salary, over the rest of the season, and had some cash flow issues .......... would you take the 6 million out of your saving account, on July 1st, or use the LOC to pay the 6 million, and spread out the repayment to the LOC over the season?

If I had cash flow issues and owned an NHL team, I would sell my team, instead of destroying a franchise.

Bingo! No more cash flow issues.

 

[Upgrayedd]

Well I'm just using a little commonsense and some logic.

But let me ask you this, if YOU were paying a NHL player a signing bonus of 6 million USD on July first, next year, and the remainder of his salary, over the rest of the season, and had some cash flow issues .......... would you take the 6 million out of your saving account, on July 1st, or use the LOC to pay the 6 million, and spread out the repayment to the LOC over the season?

I would use some common sense and realize that if I am struggling to pay out 5-10 million dollars at seemingly a consistant rate and am operating in a 100 of millions to multi billion dollar business that perhaps my current financial state is likely not good to own a professional sports toy franchise, especially one that has an affect on so many in a smaller city. That said unlike the current owner I'm born and raised here and love this city and team so I'm biased.

 

[Tuna99]

Well I'm just using a little commonsense and some logic.

But let me ask you this, if YOU were paying a NHL player a signing bonus of 6 million USD on July first, next year, and the remainder of his salary, over the rest of the season, and had some cash flow issues .......... would you take the 6 million out of your saving account, on July 1st, or use the LOC to pay the 6 million, and spread out the repayment to the LOC over the season?

Yes might make sense, but if you don’t have the $$$ to pay your top employees - that might be an indication as to why your franchise is struggling

 

[coladin]

There has already been a announcement, that addressed the Land Remediation costs, for Lebreton Flats ..... the cost will be deducted from the Purchase Price of the Land that the LBG is buying.

Yes, I know that. But the cost could exceed the purchase price...then what? Melnyk gets paid to clean it up?

 

[Masked]

Yes, I know that. But the cost could exceed the purchase price...then what? Melnyk gets paid to clean it up?

The remediation costs didn't prevent the War Museum or Claridge from building crappy condos on the land.

 

[BankStreetParade]

If I had cash flow issues and owned an NHL team, I would sell my team, instead of destroying a franchise.

Bingo! No more cash flow issues.

Let's say you own a house that you bought pretty cheap 10 years ago. Since then the housing market in your area has been on fire and the house you bought for $130,000 is now worth at least $450,000 but with an injection of cash for some renovations it could be closer to $600,000. You're struggling to make your mortgage payments but there's a community transit development that will be completed in 3 years that will drive the price of your home up to near a million dollars.

Would you take out a personal loan or line of credit so you can continue paying your mortgage, property taxes and utilities? Or would you sell now and forego the virtually-guaranteed future profits?

Anyone who says they would sell now is a liar. You would do whatever it takes, no matter how difficult it makes your position financially, to hold on and realize all of that extra profit.

 

[starling]

Anyone who says they would sell now is a liar. You would do whatever it takes, no matter how difficult it makes your position financially, to hold on and realize all of that extra profit.

Melnyk won't live long enough to see any real profits from LF real estate.
The way I see it, he is trying to maximize his return and wouldn't mind to sell as soon as possible. Trying to sell without a firm deal in place would look fishy as if he's running off a sinking ship and could push away some buyers leaving money on the table. It's in his best interest to finalize the deal, so he can take the money and ride into the sunset to never set foot in Ottawa ever again.

 

[BankStreetParade]

Melnyk won't live long enough to see any real profits from LF real estate.
The way I see it, he is trying to maximize his return and wouldn't mind to sell as soon as possible. Trying to sell without a firm deal in place would look fishy as if he's running off a sinking ship and could push away some buyers leaving money on the table. It's in his best interest to finalize the deal, so he can take the money and ride into the sunset to never set foot in Ottawa ever again.

What an utter pile of nonsense. How deep from your ass did you pull all of this out of? Melnyk won't live for more than 3 more years? He wants to sell asap and yet has reportedly turned down at least one offer?

It's in his best interest to hold on for as long as possible so he can get the maximum amount of profit out of this venture. Especially if he is planning on leaving his estate to his children, what difference does it make what his life expectancy is?

 

[Spartachat]

Melnyk won't live long enough to see any real profits from LF real estate.
The way I see it, he is trying to maximize his return and wouldn't mind to sell as soon as possible. Trying to sell without a firm deal in place would look fishy as if he's running off a sinking ship and could push away some buyers leaving money on the table. It's in his best interest to finalize the deal, so he can take the money and ride into the sunset to never set foot in Ottawa ever again.

He rarely comes to Ottawa anyways. He is always in Barbados. He might as well just sell the Sens for a good buck and buy the cheaper Coyotes if he likes owning a team so much.

 

[armani]

He rarely comes to Ottawa anyways. He is always in Barbados. He might as well just sell the Sens for a good buck and buy the cheaper Coyotes if he likes owning a team so much.

Will save him on flight cost too. WIN-WIN.

 

[coladin]

The remediation costs didn't prevent the War Museum or Claridge from building crappy condos on the land.

Agreed on the diarrhea colored condos.

But what I have read is the bigger contamination is the area that has not been developed. And it is the kind of thing that you don't really know until you get in there. I guarantee the whole downtown will stink of oil for months, maybe years.

 

[Tnuoc Alucard]

Yes, I know that. But the cost could exceed the purchase price...then what? Melnyk gets paid to clean it up?

I don't know what the Market Value of the land, being bought by the RLG is, but cost of the soil remediation is estimated to be as high as $170 million, depending on which reports you read, and this will be deducted from the purchase price.

Remember, they'll be remediating the land as it's being developed, and the cost will be paid as they go as well, at least that is my understanding .......


INSIGHT: Cleaning dirty soil is job No. 1 at LeBreton Flats


There has been a long standing rumour that there is a train buried somewhere in Lebreton Flats ....... in any case, I'm sure there will a lot of stuff discovered in the development over the next couple of decades.

This Video show just how much of an industrial hub this area was ...... if you watch closley you can pickout the Peace Tower in the background, and the tall smoke stacks, from the steam plant, at the former E B Eddy papermill, located at the Chaudiere Bridge.

​

 

[Tnuoc Alucard]

Agreed on the diarrhea colored condos.

But what I have read is the bigger contamination is the area that has not been developed. And it is the kind of thing that you don't really know until you get in there. I guarantee the whole downtown will stink of oil for months, maybe years.

Why oil?

 

[GrantLemons]

Discuss?

 

[DrakeAndJosh]

Discuss?

Seems like the incomplete stuff is from the City side, not the Sens, unless I read that wrong.

 

[topshelf15]

This was always going to be a complicated project,it will get done eventually .. Delays are just part of the process

 

[BonkTastic]

So basically the proposal is massive, and it's taking longer than normal to confirm that everything is in order?

Seems typical, I suppose. Gotta cross those i's and dot those t's.

 

[stempniaksen]

The article doesn't make it sound anywhere near as bad as the headline implies.

 

[Do Make Say Think]

The article doesn't make it sound anywhere near as bad as the headline implies.

So a strong headline yes?