Merulla’s dream: A billion-dollar core project

Developer would get downtown’s gems

A city councillor says he has a billiondollar idea for anyone willing to build a new arena, convention centre and concert hall in the downtown with their own money.

Coun. Sam Merulla says the city should consider transferring ownership of the FirstOntario Centre, the Hamilton Convention Centre and FirstOntario Concert Hall properties to a developer in exchange for the construction of privately built new facilities.

Once those essentials were looked after, that developer — or consortium of developers — could add lucrative residential and commercial facets to the plan as they wished.

“This could be a billion-dollar development,” Merulla says.

The Ward 4 councillor will be introducing a notice of motion to that effect at Friday’s general issues committee meeting.

This is the latest manoeuvre in a story that came to life a couple of weeks

ago when Hamilton Bulldogs owner Michael Andlauer said the city should be exploring the construction of a new 5,000-10,000-seat arena which would likely cost between $60 million and $100 million. At the time he said he would match whatever the city put toward the project.

Those comments didn’t initially get much official traction. But on Monday, council heard immediate repairs or upgrades costing more than $6 million are recommended for the convention centre and arena. The city’s annual budget for such repairs is $800,000. Millions more will eventually be needed for less-urgent repairs to the city’s three aging entertainment venues.

In the wake of that, Merulla crafted his motion that could leave Hamilton with a new rink and a new convention centre at no monetary cost to taxpayers. It might also bring the downtown a highrise condo development and commercial options that would provide significant tax revenue to the city.

“This is a win beyond comprehension for the taxpayers,” he says. “There’s no downside.”

If this concept sounds somewhat similar to the gist of a consultant’s report suggesting a private arena convention centre development in the core that was essentially pushed aside by council almost as soon as it was submitted to the city back in March, Merulla doesn’t disagree. Though the residential and commercial components are now new.

What’s clearly changed today is the urgency to do something in light of the necessary repairs to the existing buildings that will cost the city millions. With millions more possibly being required down the road.

And while the billion-dollar figure might be slightly hyperbolic — even Merulla acknowledges it might not be quite that high — there’s no doubt this would be a massive development that would likely be bigger than anything else in the city short of the LRT.

His plan appears to have some support around the council table, at least as an idea to explore.

Coun. Jason Farr said this week’s stark report about the state of the current facilities means a discussion on whether a new arena might be built someday should be held before spending that kind of money on a facility that may be replaced. Why spend $4 million on escalators and elevators, for example, if the building isn’t going to be around too long?

“I’m a little more open to some kind of public partnership,” Farr says, pointing to the economic spinoffs in the area that could result.

Meanwhile, the man who started the ball rolling on this says he’d be intrigued by such a proposal. While Andlauer would not automatically get the project — it would presumably be open to any developer to bid on it — he says this could make sense.

“If you’re able to create a sports and entertainment district or community district where people will flock … then of course, why wouldn’t I be interested in that?” he says.

Though he says it’s too early to commit to anything — he is out of town and heard about Merulla’s idea only moments before being asked to comment on it — he says if such a project ultimately made sense for him (and whatever group he pulled together) as well as benefitting the city, he would certainly consider it. “At least people are talking about it,” he says.