M E M O   /   N O T E   D E   S E R V I C E

 

 

To / Destinataire

ToMayor and Members of City Council

File/N° de fichier:  File Number

From / Expéditeur

From Timothy Marc, Senior Legal Counsel, Corporate Development and Environmental Law Branch

 

 

Subject / Objet

Subject Lansdowne Retail Development

Date: August 24, 2011

 

PURPOSE

 

At the August 18th, 2011 meeting of Finance and Economic Development Committee, concerns were raised by representatives of the Glebe Business Improvement Area (BIA) concerning the prospect of clothing retailers being located at Lansdowne Park.  This memo is therefore to address the extent to which the Minutes of Settlement signed between the City of Ottawa and the Glebe BIA contemplate the sale of clothing at retail establishments within the revitalized Lansdowne Park.

 

BACKGROUND

 

The Minutes of Settlement between the City of Ottawa and the Glebe BIA reference “the Conceptual Layout and Marketing Plan for the Retail portion of the Urban Mixed-Use component of the proposed Lansdowne Park Master Plan”  as a Schedule to the Minutes.  This document contains the following statement:

 

            The major themes of the retail component will be food, restaurants, entertainment, and sport.  These themes have been informed by, and are intended to reflect, the City of Ottawa’s Lansdowne Retail Strategy (Retail Strategy) prepared by the J.C. Williams Group.

 

The J.C. Williams Strategic Retail Planning Report contains a diagram of an urban village which notes that one of the portions of the retail mix will be:  Sporting/Leisure (including Fashion, Home Electronics).  The report goes on to state:

 

            The preceding diagram illustrates the formation of the retail vision strategy.  It includes the following:

 

.....

Other strong categories include cinema, restaurant and food service operations, sporting and leisure retail (this may also include limited fashion, home and electronics), health retail, services, culture and entertainment

 

On page 22 of the report it is noted that the Sports, leisure retail goods and services component is to comprise some 15% of the retail mix.  It is further stated:

 

            Note that these categories include some blurred retail categories including retail goods and services related to sports, leisure and health.  This may include a sporting goods store that rents kayaks and bikes, a spa that sells beauty products, a yoga studio that sells workout clothes, a restaurant where patrons can listen to a jazz group, etc.

 

In providing examples of “Interesting Retail” in the Sports, leisure retail goods and services category, the report notes:

 

·         Local specialty atelier that develops customized cufflinks and shirts (combines a service and retail operation)

·         Local regional company that provides sporting goods; each store has a different focus and name tailored to the specific market.

 

 

CONCLUSION

 

The Minutes of Settlement, by incorporating and “relying on” extracts from Council approved documents relating to the retail strategy for Lansdowne indicate the basis on which the BIA withdrew its appeal to the Ontario Municipal Board.  The Retail Strategy referred to therein does not prohibit retail clothing stores but directs a “major theme” of food, restaurants, entertainment and sport/leisure stores including specialty stores in an urban village format.  Any clothing stores, or in fact any other retail stores, besides those relating to food, restaurants, entertainment and sport/leisure /specialty retail are to be a modest/limited component of the retail present on the site.  The JC Williams Strategic Retail Planning Report included clothing being sold as part of the sports and leisure category which could include specialty stores.  In addition, given the reference to shirts and cufflinks above, a style of clothing that would not necessarily come within the sports or leisure category, but fits into a specialty store category, there is the possibility of some limited amount of other types of clothing stores that are unique and of a specialty nature.

 

The OMB has issued its Order approving the zoning by-law for the development of Lansdowne Park.  It is therefore unlikely that the OMB would consider rehearing the case on the basis of proposed clothing stores. 

 

Were a significant number of clothing stores to be opened at Lansdowne Park, the BIA could possibly allege that it detrimentally relied on the City’s approved marketing strategy and the Minutes of Settlement.  A detrimental reliance claim would be made to the Court and damages would have to be established.   However, as no such stores have been leased at this time, such a claim would, in the opinion of Legal Services, be premature.

 

 

 

Timothy Marc

 

cc:        Kent Kirkpatrick, City Manager

               Rick O’Connor, City Clerk and Solicitor