Hamilton Urban Precinct Entertainment Group tapped for downtown venue overhaul
The Hamilton Urban Precinct Entertainment Group has won council's favour to undertake a multimillion-dollar revamp of the city's downtown entertainment venues.
The group plans to renovate, maintain and operate the city-owned FirstOntario Centre and FirstOntario Concert Hall for 99 years and the Hamilton Convention Centre indefinitely through a lease agreement.
We are in a very good place and I think this will be a historic investment for our downtown," Mayor Fred Eisenberger said Friday.
Eisenberger said the massive overhaul and future operation of the assets will involve no taxpayer dollars, placing the financial responsibility on the consortium led by PJ Mercanti of the Carmen's Group.
Council approved a memorandum of understanding Friday with a master plan still to be worked out in the days to come. Details of the arrangement remain confidential.
We certainly welcome this news and are excited that we've been provided this opportunity to redevelop these crucial downtown cultural and entertainment assets," Mercanti said.
Vrancor Group, the other major bidder for the venues, had proposed a minimum $200-million investment that included 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.
Owner Darko Vranich has been one of Hamilton's biggest developers of hotels and apartment buildings in recent years.
The Precinct Group deal has roots in a push by Coun. Sam Merulla to have a private-sector investor redevelop the three aging venues to generate more tax revenue and end public subsidies to keep them afloat.
This will save taxpayers hundreds of millions of dollars down the road," Merulla said Friday.
Mercanti estimates $400 million to $500 million will be invested in the project over its three-to-five-year build-out.
It's not going to happen necessarily overnight, but we'll put the wheels in motion as quickly as possible to ensure that when you blink in five years, there are significantly transformed assets and new assets."
Mercanti says work on the York Boulevard arena, formerly Copps Coliseum, could begin in the summer or fall of 2021.
The estimated $50-million renovation includes a new exterior, transformed lower bowl, expanded concourse level, and a flexible curtaining system for the upper-bowl balcony. A microbrewery, suites and hospitality clubs are also part of the project.
More than $16 million in capital upgrades are in store for the Hamilton Convention Centre, FirstOntario Concert Hall and Art Gallery of Hamilton.
A mixed-use development, including affordable housing, estimated at $340.5 million is part of the overall blueprint.
In addition to Carmen's, the consortium counts as members LIUNA Pension Fund, Fengate Capital, Meridian Credit Union, Jetport Inc. and Paletta International.
Carmen's, a catering and hotel business, already operates the convention centre on behalf of the city.
The Precinct Group and Vrancor made public pitches in February but council told economic development staff to keep working with them on their proposals. Confidential talks continued and led to Friday's council vote.
The Hamilton Bulldogs are the downtown arena's major tenant. Michael Andlauer, who owns the OHL team, has expressed discontent with the aging venue and proposed building an arena with millions of his own funds on the Mountain.
Council rejected his plan for a 6,000- to 8,000-seat arena, and in February, Andlauer noted he'd spoken to Mayor Marianne Meed Ward of Burlington, about potentially relocating his team.
On Friday, however, he expressed support for the Precinct Group redevelopment, saying the two organizations enjoy an alignment of values," which have the community's best interest at heart.
In a prepared statement, Andlauer called the deal an important step" toward Hamilton reaching its economic potential" and said he looked forward to working with the consortium and city.
We've always said that our priority would be to stay in this community. This has been our home for 20 years and we look forward to a plan that keeps us here for decades to come."
Mercanti anticipates robust" discussions with the Bulldogs and city about the arena project's timelines.
He also expects the group will hold talks with entertainment industry giant Spectra, which has a contract with the city to operate FirstOntario Centre and FirstOntario Concert Hall.
The goal is going to be ensure that we can deliver upon the savings to the taxpayers that we set out to achieve so we will be having discussions with operators."
Teviah Moro is a Hamilton-based reporter at The Spectator. Reach him via email: tmoro@thespec.com