The Ottawa Senators and the National Capital Commission (NCC) have reached an agreement in principle regarding the sale of a parcel of land in Ottawa on Friday, the next step toward building a new downtown arena for the team in the LeBreton Flats district.

The two sides announced the agreement ahead of a deadline Friday before a memorandum of understanding, signed in 2022, was set to expire.

“We are pleased to take this next step in the process with the National Capital Commission,” Senators president Cyril Leeder said Friday. “Our ultimate desire is to build a world-class, multi-event center in the heart of Ottawa-Gatineau that can be enjoyed for generations to come.

“Today represents an important step towards achieving that goal and we are committed to working with the NCC and other key stakeholders to make this a reality.”

The Capital Sports Development Inc. (CSDI), the parent company of the Senators, and NCC will begin due diligence working together on next steps and project timelines.

LeBreton Flats is 1.24 miles southwest of Parliament Hill, where the Parliament of Canada is located.

The deal also includes plans for an entertainment district around the rink, including bars, restaurants and on-site parking.

“This agreement with CSDI and the Senators is great news for the National Capital Region,” NCC CEO Tobi Nussbaum said. “The major events center and arena district will bring life and excitement to LeBreton Flats.

“This partnership will build on the development phases already announced as part of the NCC Building LeBreton project that will see 6,000 new housing units with an affordability target of 25 percent.”

The agreement comes one day before Michael Andlauer’s one-year anniversary as Senators owner.

Building a new arena has been front and center in Andlauer’s plans for the franchise. Following a tours last season of UBS Arena, home of the New York Islanders, and Climate Pledge Arena, home of the Seattle Kraken, Andlauer said he hoped to utilize what he observed during those visits.

“We try to ‘R and D’ — rip off and duplicate — all of the best-in-class everywhere,” Andlauer said on Dec. 4, 2023, “and hopefully we’ll be in position one day where we have a piece of land somewhere and we’re able to do something pretty special for the fans … I’m here to learn, learn about what’s best-in-class and also understand what our fans want, what our politicians are looking for, timeline with NCC.”

Since 1996, the Senators have played their home games at Canadian Tire Centre — also formerly known as The Palladium (January 1996) and Corel Centre (1996-2006), located in Kanata, Ontario, a suburb located about a 25-mile drive west of downtown.

NHL.com independent correspondent Callum Fraser contributed to this report