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Sens' arena plans hit another snag as mediation fails to produce settlement

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The Ottawa Senators' plans for a new downtown arena have hit another roadblock.

Mediator Warren Winkler advised the National Capital Commission that the parties involved in the negotiations over a proposed LeBreton Flats facility have been unable to reach a settlement, the NCC announced Wednesday.

The commission will convene by teleconference Thursday to discuss Winkler's news, and another meeting will be held March 7 to finalize a new process.

Senators owner Eugene Melnyk lamented the collapse of the project in a statement Wednesday.

"We are devastated that our dream has been shattered," he said. "However, we will not let our vision die or allow our enthusiasm to be diminished by this ill-fated experience. More than ever, we are determined and committed to explore alternative approaches in central locations that could accommodate a world-class hub. We are here for the long term and want a world-class venue where Ottawans will live, work, play, and enjoy the best the city has to offer. The people of Ottawa deserve this."

GBA Development and Project Management president Graham Bird was able to get the three parties - including Melnyk's Capital Sports Management and Trinity Development Group's John Ruddy - to agree to mediation in January.

Melnyk's firm sued Ruddy's group for $700 million in November after the two sides revealed internal partnership issues.

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