Deal for Hamilton’s entertainment venues expected Friday

City council is expected to announce the successful proponent of a multimillion-dollar revamp of Hamilton's entertainment venues on Friday.

Two groups made public pitches in February to refurbish and operate the downtown arena, convention centre and concert hall.

Behind closed doors, council told economic development staff to keep working with the Hamilton Urban Precinct Entertainment Group and Vrancor Group on their proposals.

Confidential negotiations have continued and an announcement is expected Friday.

It's pretty awesome," Coun. John-Paul Danko said about deal without offering details. It's a big deal."

Coun. Jason Farr said to expect a statement from Mayor Fred Eisenberger on Friday.

Springing from a motion by Coun. Sam Merulla in 2018, the city's goal is to have a private-sector investor redevelop the three aging venues owned by the city in order to generate more property tax revenue and end public subsidies to support them.

Hamilton Urban Precinct Entertainment Group includes the Mercanti family's Carmen's Group, LIUNA Pension Fund, Fengate Capital, Meridian Credit Union, Jetport Inc. and Paletta International.

They've proposed a $500-million plan to equip FirstOntario Centre with expandable seating, building a new convention centre at the location of a renovated City Centre, a mixed-use tower where the existing convention centre sits and an enhanced concert hall.

Carmen's Group operates the convention centre on behalf of the city.

Vrancor's proposal - which it has cited as a minimum $200-million investment - is for a renovated and expandable arena with two office towers, a new hotel, a larger convention centre at the existing site and an upgraded concert hall.

Vrancor Group is owned by Darko Vranich, one of Hamilton's biggest developers of hotels and apartment buildings in recent years.

Representatives of the competing bidders didn't immediately respond to requests for comment Wednesday.

On July 6, councillors met in camera for an update on the talks and voted publicly to instruct staff to declare the properties surplus to unload them through sale, lease or easement.

As well, staff were told to firm up a memorandum of understanding and other agreements. There was no public mention of the winning proponent. Related documents and reports weren't released.

On Friday, councillors are expected to sign off on the final details.

Teviah Moro is a Hamilton-based reporter at The Spectator. Reach him via email: tmoro@thespec.com