Eugene Melnyk tried to halt LeBreton venture in September

The company owned by Eugene Melnyk said it had no idea its partner Trinity Development Group had filed the planning applications for their $4-billion project to redevelop LeBreton Flats, according to a letter obtained by CBC News. 

In fact, his Ottawa Senators organization said it didn't even see the plans until after they were filed to the city on Aug. 31.

On Sept. 5, a lawyer for Capital Sports Management Inc. (CSMI) emailed Trinity chairman John Ruddy to object "in the strongest possible terms" to the fact that the Senators organization did not approve of — nor were consulted on — the applications before they were filed.

The move led Melynk's company to tell Ruddy that it did not want "any steps being taken to further the development" on LeBreton Flats until certain concerns were addressed.

Trinity's lawyer Milton Davis did not respond directly when asked if the developer had answered CSMI's Sept. 5 letter, but said that CSMI was aware the planning documents had to be filed.

Neighbouring plans

These are some of the details starting to emerge after the $700 million lawsuit CSMI filed last Friday against its main partner in RendezVous LeBreton Group, the consortium chosen in 2016 by the National Capital Commission to redevelop the 21 hectares of land just west of downtown.

Also named in the suit is developer Graham Bird and his firm, Graham Bird Associates.

The crux of CSMI's suit is that Trinity was in a conflict of interest because it was involved with city insiders to develop an upscale building complex at 900 Albert St., which is across the street from LeBreton Flats.

Trinity's project, the suit alleged, would have a negative impact on the financial success of the LeBreton plan, which was to include not only a new arena, but 4,000 residential units, commercial and office space and public areas.

None of CSMI's allegations have been proven in court.

The defendants have all strongly denied the claims in the lawsuit and said they plan to vigorously defend themselves.

Senators went to mayor

Less than two weeks after writing to Trinity, the Senators wrote to the mayor for help. 

In the letter, dated Sept. 17, Senators chief operating officer Nicolas Ruszkowski told Jim Watson that CSMI was unwilling to go on with the project unless "significant" concerns were resolved.

He wrote the plan was "unfinanceable as currently structured."

Among other things, the letter indicates the mayor knew the Senators were seriously considering withdrawing from the project at least as early as September.

Watson was supposed to meet with Melnyk on Sept. 24, but the meeting was postponed to early October due to the tornadoes, according an emailed statement from the mayor's office.

An email obtained by CBC News shows Melnyk did eventually concede to moving ahead with the planning application.

"I hope this will break the logjam and allow the Lebreton project to move forward," Melnyk emailed Ruddy on Oct. 19, about a month before serving him with a multi-million dollar lawsuit.

The Senators' Ruszkowski said in an emailed statement that Melnyk agreed to review the planning files in hopes that the negotiations with Trinity could succeed. 

However, "at no time did we waive our right to review and approve the applications prior to their submission," said Ruskowski.

"We saw them only after the fact, which further shook our confidence in the partnership."