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Watson for the first time addressed the fallout from CSMI’s lawsuit, which alleges Ruddy and Bird used the LeBreton Flats development to bolster the future Trinity-led 65-storey complex at 900 Albert St. across from LeBreton Flats.

Ruddy and Bird have denied the allegations, which haven’t been tested in court.

Watson isn’t named as a defendant in the lawsuit, but the statement of claim includes a section alleging the mayor’s chief of staff, Serge Arpin, told CSMI that withdrawing from the LeBreton Flats redevelopment during the 2018 municipal election campaign would “sever” the relationship between Watson and Melnyk.

Watson declined to comment on those allegations. He said he sees himself as a mediator to help make the LeBreton project happen.

The 41-page lawsuit was filed last Friday after the NCC board the previous day gave RendezVous until the next board meeting in January to resolve the private consortium’s internal bickering. Melnyk and Ruddy are the main partners in RendezVous.

Watson said he was “disappointed” by the lawsuit.

“I think there was a lot of enthusiastic support for the revitalization. The arena, the housing, the retail, the LRT stops, all on one site,” Watson said. “My job is to continue to work with the NCC, work with the Government of Canada and the private sector, to ensure we don’t lose this once-in-a-generation opportunity to revitalize that important piece of land.”

Watson, who supports the Senators moving downtown, said he believes he can work with Melnyk if the hockey club remains in the redevelopment picture, although the mayor acknowledged it’s unlikely the NCC board will continue with the current RendezVous structure.

The mayor is a non-voting member of the NCC board.

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Melnyk’s lawsuit suggests the future saturation of the housing market around LeBreton Flats, particularly considering the massive 900 Albert project, would damage the viability of the redevelopment.

Council approved the development application for 900 Albert earlier this year.

According to Watson, “there is more than ample space for competition” in the real estate market.

Watson said planning decisions made by council won’t be carried out, in some cases, for several years.

“The thing I hear over and over again right now from the real estate agents that I speak to, and I go to their meetings and so on, and they have a pretty good sense what’s going on in the real estate market, there is a clear shortage of properties for sale,” Watson said. “It is a sellers’ market out there. The prices are going up because there’s a very small inventory on the market.”

Watson said baby boomers are downsizing and want to live in condos or apartments in the downtown area.