How can Hamilton build a new arena? Look to London for an answer
The revitalization of Hamilton, and specifically the downtown core, has long been the goal of our city leaders. One could argue that the city is definitely on the right course; however, one major item that needs immediate attention is our aging arena, the FirstOntario Centre (Copps Coliseum). The current arena seats over 17,400 and is too large for our major tenant, the OHL Bulldogs. Moreover, it requires significant investment for infrastructure and safety upkeep and upgrades that could cost the taxpayer millions of dollars over the next few years. The time has come for the city to begin looking at alternatives for this building, and there is a solution that would benefit this city immensely.
As a result of our previous stadium planning the city expropriated waterfront lands, at a cost of $10 million, and set aside several million for soil remediation. This now sits vacant and is an eyesore, but can now be used to build a brand new sports and entertainment arena and district. Here’s how it would work:
The city partners with Bulldogs owner Michael Andlauer (who has already publicly expressed interest in such a partnership) to construct a 9,000-10,000 seat arena similar to the Budweiser Gardens in London, Ont. The city develops an agreement and a not-for-profit corporation entity to construct and operate the arena on the waterfront lands. This entity then grants the new not-for-profit corporation a 50-year lease on land at no cost and with property taxes (arena only). Property taxes would apply, however, to all business such as restaurants, retail shops and parking lots located in the arena and immediate arena precinct.
For his part, Mr. Andlauer donates a substantial amount of money (in the millions) to the city and the “not for profit entity,” specifically for arena construction, and is issued a tax receipt by the city in that amount.
In London, the city passed a bylaw that gave the arena corporation a designated Municipal Capital Facility (MCF) status and is property tax exempt. From my discussions with municipal taxation personnel, I have ascertained that the Budweiser Gardens in London is a multi-purpose entertainment and sports facility and operates as a public-private partnership. The facility is managed by Global Spectrum (same company that operates Hamilton’s FirstOntario Centre) on behalf of the partnership, London Civic Centre (LP). The MCF status ensures the arena is used for community organizations and other major sports and entertainment events. This allows for significant community programming opportunities for groups here in our city as well.
In terms of funding the city’s contribution to the project, the city would allocate an interest-free loan of $20 million from the Future Fund to the construction of the arena. The city would also sell the existing arena/lands to a developer who in turn will develop a multi-use convention centre complex while simultaneously selling the existing convention centre to a hotel and/or condo developer. Proceeds from these land sales will be allocated to the arena construction project. Naming rights, advertising and concession and merchandizing revenue can go directly to the initial construction costs.
The time for big ideas is now, and the creation of an entertainment district on the waterfront with a strong public-private partnership would continue the fantastic growth we’ve seen in our city. This plan would not only provide us with a top-notch facility but also a savings on future expenses to aging infrastructure. Let’s be ambitious again, follow the London model, and create a destination point all Hamiltonians could be proud of.