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Hockey Ottawa Senators owner Eugene Melnyk suing partner in arena development deal

Ottawa Senators owner Eugene Melnyk speaks to the media following a National Capital Commission meeting regarding the Lebreton Flats redevelopment in Ottawa on April 28, 2018.

Sean Kilpatrick/The Canadian Press

Senators owner Eugene Melnyk is suing his business partner in a development deal that was meant to bring a new NHL arena to Ottawa’s downtown.

Capital Sports Management Inc., a group controlled by Melnyk, said in a release Friday that it has started legal proceedings against John Ruddy, the chair of Trinity Development Group Inc., “seeking damages arising out of a failed joint venture between Trinity and CSMI.”

The statement alleges the two companies were not able to finalize a master development agreement for the LeBreton Flats area of Ottawa, a couple of blocks southwest of Parliament Hill.

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CSMI says its statement of claim “alleges a number of breaches, all arising out of a conflict of interest, that directly resulted in the failure of the partnership.”

The statement of claim was filed a day after the National Capital Commission, the Crown corporation which is responsible for the land at LeBreton Flats, said the Senators-backed RendezVous LeBreton Group advised the NCC on Nov. 8 that they had not been able to resolve internal partnership issues.

The NCC picked RendezVous for a development deal at LeBreton Flats that included a new NHL arena for the Senators as well as housing developments.

The Senators currently play at the Canadian Tire Centre in Kanata, about 22 kilometres west of Ottawa’s downtown.

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