BY ELIZABETH PAYNE, OTTAWA CITIZEN

OTTAWA — A potential buyer has signed a letter of intent to purchase the Domtar lands on Chaudière Island and the nearby Quebec shoreline, an area that has been called “the cradle of Canadian civilization” by one organization with an ambitious vision for the site.

Stuart Lister, of corporate communications at Domtar, confirmed Wednesday a potential buyer signed the letter of intent earlier this month and has until September to complete “due diligence” on the historic, post-industrial site which is steeped in heritage and mired in complex jurisdictional issues.

Lister warned a letter of intent is a big step from an agreement to purchase the 37-acre site and that such letters have been signed with interested parties in the past. “Many don’t materialize to a definitive agreement,” he said. “I don’t want to get expectations up to say we will have an announcement in mid September.”The letter of intent comes as a new organization calling itself Vision Chaudière prepares to launch an art project that it hopes will draw attention to the site and act as a catalyst for its redevelopment. The group, headed by Mark Brandt, the Ottawa architect whose master plan for the Chaudière Islands formed a key part of the National Capital Commission’s vision for the area, would like to see the site become a mixed-use development with restaurants and housing, among other things.

The Chaudière Islands, which were an important site before European contact in North America and played a key role in the development of Canada, have long been considered a crucial piece of real estate in the national capital, something Domtar acknowledged when it announced it would sell the property. “We’ve said all along that we recognize the development potential and the heritage value of this site. We know it is right in the heart of the national capital region,” said Lister.

After Domtar closed its plants, it began negotiations with the National Capital Commission about the future of the site. The NCC has made little secret of its interest in the lands in the past, calling them “symbolically meaningful to Canadians.”

In 2008, former NCC CEO Marie Lemay called the site “extremely important for the capital,” and talked about plans to “bring the public to the river and bring the area to life.” The NCC vision for Chaudière and Victoria Islands has been compared to Venice as well as Vancouver’s Granville Island with commercial and residential development, parks, public use and heritage components. That vision is a long way from the post-industrial brownsite that marks the lands today.

The NCC’s interest in acquiring the lands ended about 18 months ago when Treasury Board turned down a potential deal between the NCC and Domtar, said Brandt.

“I think Domtar was as surprised as the NCC when the Treasury Board turned it down.”

After that deal fell through, Domtar put the site on the open market where interest has percolated.

Brandt said he has been contacted by three different developers who have “touched base” with him about the site.

“There are active development teams looking at it. The NCC is very interested and hopefully before a deal is struck they are consulted as well.”

A spokesman for Foreign Minister John Baird said the federal government is also anxious to see the site developed.

“These are environmentally contaminated lands with derelict properties and obviously we want to see something done that is in the public interest,” said Baird’s press secretary Rick Roth.

Brandt said he believes a public-private partnership makes the most sense for the site and lines up with the federal government’s philosophy.

“There needs to be a much greater appreciation for the place and a knowledge of what it could become, which doesn’t mean you need a millionaire patron or federal government with massive amounts of largesse.”

Brandt said the historic and geographic significance of the property can’t be overstated. Not only has it been an important gathering spot for First Nations for hundreds of years — and one that Samuel Champlain wrote about in his journal — but it was the site of the first fixed link between Upper and Lower Canada with what was once known as the Union Bridge. It is also the site of lumber operations that helped build Britain’s royal navy during the Napoleonic wars.

“This is a really special place within the national, capital region. “Because of that we didn’t feel that was a place for someone to come along and slap up a condominium,” Brandt said. His masterplan envisions public space, arts, culture, boutiques, cafés and restaurants, among other things, on the site. First, he said, it is important to get people to understand its significance. “It’s such a special place and nobody knows about it.”

Domtar, which has been working to have heritage buildings on the site identified, is fully aware of its national significance, said Lister.

“We understand it is a special site and we want to make sure we are selling it to a buyer that can develop it to its full potential and recognize its heritage value.”