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The sources, who didn’t want to be identified because they aren’t authorized to speak publicly about the negotiations, said Melnyk has been trying to avoid paying for the arena.

“The expectations were spectacularly unrealistic,” one source said.

Two sources said Ruddy has signed the corporate governance agreement, but not Melnyk.

The Senators declined to comment on the specific characterizations from sources.

“Throughout this process, we have respected the terms and conditions set out in our agreement with our partner. We will continue to do so and therefore, we will not be commenting on misleading and unattributed speculation that does not move the process forward in a constructive manner,” said Senators chief operating officer Nicolas Ruszkowski.

“Throughout this process, we have respected the terms and conditions set out in our agreement with our partner. We will continue to do so and therefore, we will not be commenting on misleading and unattributed speculation that does not move the process forward in a constructive manner” — Ottawa Senators chief operating officer Nicolas Ruszkowski.

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Mayor Jim Watson, a non-voting member of the NCC board, called Thursday’s news a “setback and it’s a disappointment.”

“They have to get their act together, plain and simple,” Watson said of RendezVous after the NCC meeting. “Otherwise, I think we’re going to have to move on in January.”

The Senators and Trinity can regroup or reorganize and even bring in new partners under the NCC’s process, but they have to agree to take a course of action.

Watson has sat in at least one meeting with Melnyk and Ruddy on the topic of LeBreton Flats. It happened last August in the mayor’s boardroom, with Ruddy on one side of Watson and Melnyk on the other.

On Thursday, Watson was asked about his impression of the relationship between Melnyk on Ruddy.