Hamilton entertainment facilities - tipping point

NRU
Dec. 6, 2017
By Daniel Taylor

With an anticipated increase in maintenance costs for Hamilton's downtown entertainment facilities-Hamilton Convention Centre, First Ontario Centre and Copps Coliseum-from $800,000 in 2017 to $6.3-million in 2018, staff is exploring the sale of these and other city-owned assets in the area.

Last week, Hamilton budget committee directed staff to report on a process to facilitate the sale of the convention centre, theatre and arena, and the creation of a privately owned, mixed-use development with entertainment functions and residential units in downtown Hamilton.

Strategic partnerships and revenue generation director John Hertel told NRU that the timing of the decision had become critical because of the unexpected increase in the costs of repairing and maintaining the aging facilities.

"It's always been one of those looming issues, but what was a catalyst that made us say that 'it's time that we step back and take a big picture look' is the fact that there are expensive structural issues that came to council's attention. One was, for example, the convention centre. The exterior brickwork had some real problems … and some of the estimates say it's going to be about $2-million just to fix that."

In the search for developers to replace all three entertainment facilities, as well build residential units and commercial spaces, Hertel suggests the sale of the properties could be the lynchpin.

"Committee agreed that since we don't have dollars, our contribution could be in some way shape or form a portion of or all of the land that we sell to the developer, and we can do it as a contribution to the overall package and make the numbers work. This kind of flexibility tells us intuitively that we're going to get lots of interest."

Hertel added that the Hamilton Art Gallery-situated between the other three large entertainment properties-is also being considered for sale, along with any other city-owned parcels in the area.

Ward 4 councillor and budget committee member Sam Merulla explained to NRU some of the thinking behind the proposed sale.

"We want to unload the liability and we want to unload the subsidy. We're offering what will be north a billion dollar development that will provide millions of dollars in revenue for whoever owns it. For the city, we'll create a revenue source through taxation. That's the business we should be in, collecting taxes."

In determining the process for such a large undertaking, Hertel said staff will design a similar procedure to the one the city used to redevelopment its waterfront in terms of scope, interdepartmental cooperation and public engagement.