I would ask you about what your real goal is here. What type of lawn do you want to have? How much matainance do you really want to do on this once you get the grass growing again?
In my experience, almost all sod is nearly 100% Kentucky Bluegrass. It is a very good looking grass, handles a very short cut well, and has a deep color. However, it also has shallow roots and doesn't do well when there isn't much rain.
Being up in Canada, I suspect that you are too late for this fall. I think that if I were you, I would spend the winter putting a plan in place for how you are going to renovate in the spring.
The first thing to do is get a professional soil test done. You need to know whether there is something about the soil that is killing the grass. Get that done first and plan on fixing the Ph level if needed.
Then, I would re-read Paul's article about lawns and soil depth. You may want to take the opportunity to law down some new soil or a few inches of compost. Some towns give free compost away, so I would check there first. Before re-seeding, I would really encourage you to improve the soil first. Another thing to think about is your drainage and grading. I noticed the long gutter extension. If you have an issue with water in the basement, now is the time to dig out some drainage, such as a drywell or french drain. You could also put in a rainwater collection system. www.ndspro.com has some great publications on their website about how to do some of these things. They are not written from a permaculture perspective, but they are still useful.
Once you check the soil, fix the drainage and amend the soil with compost or loam, you will be ready to reseed. Paul recommends tall fescue. Take some time to read about your options. Talk to people in your area about what is the best grass for you. You want something with very deep roots so you don't have to mow and water as much. Personally, I like a blend of grasses because I like the variety. If you want to, buy a ton of crocuses and throw them into the mix. They usually come on sale around November.
I think that you are going to have to plan on seeding in the spring, which is tough. You are going to have to spend a lot of time pulling weeds by hand while the grass gets established. No pesticides... just pull by hand and the grass should out-compete the weeds.
Good luck and keep us posted on your progress!