Let 2 bidders battle to run entertainment venues: report

Council to consider idea based on success of Carmen’s, Spectra

Council will consider making it a two-horse race to run Hamilton’s aging downtown entertainment facilities.

A report to councillors Monday recommends negotiating a six-month extension of existing operating contracts for the city’s arena, concert hall and convention centre, leaving a decision on the long-term fate of the facilities to a post-election council next year.

But the report also suggests considering bids to take over all the facilities for the next five years and narrowing the field to just two bidders: the current operator of the arena and concert hall, industry giant Spectra; and current convention centre operator Carmen’s Group and its growing list of partners.

The report gives both operators props for being “exceptional operators” and saving the city a collective $5 million since taking over the formerly city-run, money-losing HECFI facilities. Carmen’s gradually eliminated an annual city subsidy for the convention centre over five years; Spectra receives about $1.3 million a year to run the arena and concert hall.

Allowing the parties to bid on all facility operations could result in an “even more favourable” deal for the city, the staff report suggests.

The Carmen’s consortium — which now includes billionaire Ron Joyce and former Toronto sports executive heavyweight Tim Leiweke, among others — is also expected to outline a more ambitious entertainment “precinct” plan to someday redevelop the crumbling arena, concert hall and convention centre.

Public details on that plan are still scarce, but several of Carmen’s partners were also behind a consultant’s report last year outlining a $250-million potential rebuild of the downtown arena.

Council recently supported a motion from Coun. Sam Merulla to explore the potential of partnering with the private sector to redevelop Hamilton’s aging facilities and potentially build new housing.